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Abstract
Foreign Direct investmentserves asa focal source of capital formation inanycountries for its economic development in a significant way. Thisisexpected to include all industries and sectors including insurance, especially in developing countriessuch as India. It is beyond doubt that the working performance of FDI as a tool for development is a positive or negative or something else is a million dollars ($) question crossing over the minds of academicians and practitioner’s,Particularly the role of FDI in insurance sector is an explorative in nature and there is a scope for significant dynamics and collision of FDI on the performance of life insurance companies. The present paper examines weather the collision of FDI is significant over financial performance of Life Insurance companies or not through a case study of IKM Life Insurance company. A multiple regression has been run to estimate the performance of select insurance company and compared with actual performance to examine the collisionof FDI on Life Insurance sector.