what are the risks involved in opening the doors for the foreign company in the insurance sector?

Answer 1

1. Loss of jobs in domestic insurance companies.
2. Pressure on weakening currency due to capital flows
3. Political backlash (e.g. China)
4. Potential change in industry-wide coverage (e.g. competition squeeze out profitability in some coverage areas).
5. Potential predatory pricing that ends up reducing competition over long run.