Abstract: This paper describes a study on the attitude of consumers and insurance agents towards the proposed increase in Foreign Direct Investment (FDI) in Insurance sector in India. The study focus on the impact of FDI in insurance as perceived by the sample of the study based on four dimensions namely economical impact, impact on service, benefits and overall impact on market. A quantitative survey was conducted using a measurement tool developed for the study. The sample of the study consisted of consumers and insurance agents from selected insurance companies in Chennai. The results of the study indicates that the customers welcome the government decision to increase the FDI cap in insurance. The participants of the study perceived that the better service and more options in the product portfolios are the general expectations from the insurers.