New Delhi, May 28 -- The recent spate of deal activity in the insurance sector is being driven less by the increase in foreign direct investment (FDI) limit to 100% from 74%, and more by the enabling provision allowing foreign investors to have management and operational control of these companies, experts said.

Most foreign investment has come from existing players in the Indian market looking to expand their presence, rather than from new investors. This has led to the collapse of several existing partnerships, as foreign investors look for partners offering equal, if not greater, control. Several industry experts Mint spoke to said this could pave the way for more competition and further consolidation in the sector.

Allianz SE, which...