Life Insurance Council Secretary General V Manickam said projections were made on the basis of growth in GDP and household savings over the next few years.
"With the help of all the opportunities available, we are confident that we will be able to grow 2-2.5 times or 3 times of the current size by 2020. That means in terms of numerical numbers, our AUM would reach around USD 1 trillion. That means by 2020, the AUM of life insurers would reach around Rs 60 lakh crore. Now it is nearing Rs 20 lakh crore," he said in a press conference.
He said the level of penetration of life insurance industry is expected to grow from present 3.2 per cent to 5 per cent by 2020.
"Expected CAGR of life insurance industry will be 12-15 per cent in the next 3-5 years....The net household financial savings could reach around 30 per cent in the next 3 years from the present level of 23.1 per cent (FY 2011-12), which will benefit life insurance as it is the second most preferred financial instrument," he said.
Manickam further said after reaching Rs 60 lakh crore AMU in life insurance, investments into the infrastructure sector are expected to grow from Rs 1.73 lakh crore to Rs 3.5 lakh crore by 2020.
The growth over period would double the employment opportunity in the life insurance industry to five lakh people from the present 2.41 lakh.
"We are expecting around USD 10 billion FDI in to the sector by 2020. Once it comes our penetration in the rural area would increase from 72 per cent to 80 per cent and thereby contributing employment opportunities," Manickam said.
Life Insurance Awareness Committee Chairman Rajesh Sud said every hour five death claims are being settled in the country.
"During the last financial year, the life insurers have paid Rs 1.91 lakh crore to people towards benefits including death claim, maturity claim and surrender payouts against Rs 1.53 lakh crore during 2011-12," Sud said.