Life insurance, a ten- year plan under study

A life development plan for the next ten years is currently under study. It will be submitted to the regulatory authorities (IRDA) next month. The plan focuses on issues of profitability, growth, penetration rate, product development and innovation. The life insurance market in India is now in an adjustment phase. The authorities have forced insurers to consolidate their operations and focus on profitability. Since opening its market to the private sector a decade ago, 22 life companies have been established. These companies have developed their infrastructures but have sustained heavy losses. Innovation in terms of products has remained quite limited.