While the annualised premium of the life insurance industry contracted 9% in FY15, it is expected to grow at 12-15% in FY16 on the back of an improved capital market scenario and moderation in physical returns. Volumes of unit-linked insurance plans grew 54% to R13,300 in FY15 because of an increasing risk appetite and there is a gradual rise in the proportion of the single-premium business for private players. Also, structutal changes like policyholder-friendly products, lower commission and minimum surrender value will augur well for life insurers this year.
