While the life insurance industry registered a significant growth of 31% (CAGR) between FY01 and FY10, it reported a meagre CAGR of 0.6% between FY10 and FY15 because of regulatory changes, poor economic growth and lack of customers’ trust in the sector. Penetration has slipped to 2.6% in FY15 from 4.6% in FY10 and new policies issued in FY15 are lowest since FY05. Though the fundamentals of the industry are in place, insurers and the regulator need to ensure continual relevance of life insurance and respond to changes to enhance efficiency in their operations.
