Moody’s Ratings has said it sees significant foreign direct investment flows into the insurance sector if govt goes ahead with a proposal to increase foreign direct investment to 100% from 74%. This is coupled with improving margins for Indian insurers, brought about by govt pressure on public sector insurers, the listing of insurance companies, and the move toward newer tax rules. “Many markets still do not allow 100% FDI in insurance. Wholly-owned subsidiaries give foreign companies more incentive to deploy more resources.