With equity markets moving up, the share of unit-linked insurance products (Ulips) in the private insurers’ product mix is rising. Between FY05 and FY10, the product mix of private life insurers was dominated by Ulips — it was 89% in FY07. But it dropped to 29% in FY14 after Irdai introduced a series of changes in the product structure in 2010. However, in the first half of this financial year, their share has gone up to 34% as the new-look Ulips are more transparent, with the regulator having capped various charges, increased the lock-in period and mandated a minimum guarantee.
