In India, the life insurance industry was opened up about a decade ago with the dismantling of LIC’s monopoly. Currently, India has 23 life insurers with assets worth Rs 10 trillion.
And according to the Industry experts, the Industry expected to grow at 10%
And problem starts here.
The two regulators, IRDA and SEBI are locked in a battle regarding management of Unit Linked Insurance Plan.
Recently, a member of IRDA said in an interview: “Ulips globally are managed by insurance regulators and under no circumstance will we let Ulips to be taken over by SEBI.”
And SEBI fought back with the claim that since Ulips generate a return on investment, they are similar to collective investment schemes such as mutual funds, which come under their jurisdiction.
Really, it’s battle to well fight as Ulips are the most popular product and it’s been reported that as much as 90% of premiums come from Ulips. In the first nine months of the current fiscal, Ulips accounted new business premiums worth of Rs. 35, 722 crore.
Now the insurance companies are doing their best to improve efficiency and also trying to operate from small towns and villages that led the Industry to 10% growth. Now it’s exciting to watch, who fought to the win—SEBI or IRDA?
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