This article studies the impact of FDI inflows on non-life insurance penetration in 76 developing countries over the period 1996-2011. It is based on two well-documented effects in the literature: (i) FDI contributes to income growth per capita, and (ii) higher income per capita increases the development of insurance, especially non-life insurance. Thus, the objective of this work is to show that FDI contributes to the development of insurance sector beyond the income effect. Estimates show that FDI does have this additional effect of the income effect, but that its magnitude is conditioned by the legal certainty of contracts and individuals.