Insurance sector to see 10% growth in 5-6 year: IRDA

The Insurance sector is expected to witness a compounded growth rate of 10 per cent in 5-6 years, IRDA Chairman J Hari Narayan said today.

Even though the awareness about general insurance products have grown in India, insurance penetration was still among the lowest in Asia, he said at the annual summit of Insurance Brokers Association of India.

On IBAI's demands on renewal of policies, he said there are 296 licenced brokers and 62 renewals are pending and are expected to be cleared soon. Renewal of licences in 2009 has not been smooth due to complaints of inadequacies in compliances to IRDA rules by brokers, he said.

On the Swarup Committee recommendations, he said they were basically aimed at investor protection. Though he agreed that the exact quantum of commission received by the financial intermediary be disclosed, Narayan differed with Commission on the issue of not embedding commission in the premium and adopting a fee-based structure.