“Despite the slowdown in economy, the sector has been on a growth trajectory, as the policyholders are realising the value of insurance,” Life Insurance Council secretary general S B Mathur said at a conference call.
Last fiscal, the total premium, including renewal and new business have grown more than eight times to over Rs 2,21,000 crore.
He further informed that the penetration of life insurance sector was also increasing rapidly and the total industry size as percentage of GDP was likely to touch 4.19 per cent this fiscal, up from four per cent in 2008-09.
“Besides, our share in the world premium increased to around two per cent last fiscal, up from half per cent in 1999-00,” he added.
On the recent talk of cap on agent commission, Mathur noted it would only impede the growth of the sector. “Besides, the percentage of agent commission is already crashing and it is almost six per cent of the total premium now as compared to 12 per cent in 1999 due to competition,” he said.