IRDA and SEBI two regulators are locked in a battle regarding management of ULIP, a Unit Linked Insurance Plan. "Ulips globally are managed by insurance regulators and under no circumstance will we let Ulips to be taken over by SEBI," R. Kannan, a member of IRDA said in an interview.
SEBI's argument is that since Ulips generate a return on investment, they are similar to collective investment schemes such as mutual funds, which come under its jurisdiction.
Ulips are the most popular hybrid product as some private insurers reported that as much as 90% of premiums come from Ulips. Ulips accounted for new business premiums worth Rs35, 722 crore in the first nine months of the current fiscal. As a hybrid product with predominant premium investment in equities and bonds the returns on Ulips depend on the market value of the securities which is similar to mutual funds.
India's life insurance industry is expected to grow by around 10 per cent in 2010 over the previous year, mainly by improving efficiency but also by expanding in small towns and villages, as per industry experts. A better planned sales mix of unit linked insurance policies and more traditional endowment & term insurance plans would be a good bet.
In India, the life insurance industry was opened up about a decade ago with the dismantling of LIC's monopoly. The country has 23 life insurers with assets worth Rs10 trillion.
SEBI's argument is that since Ulips generate a return on investment, they are similar to collective investment schemes such as mutual funds, which come under its jurisdiction.
Ulips are the most popular hybrid product as some private insurers reported that as much as 90% of premiums come from Ulips. Ulips accounted for new business premiums worth Rs35, 722 crore in the first nine months of the current fiscal. As a hybrid product with predominant premium investment in equities and bonds the returns on Ulips depend on the market value of the securities which is similar to mutual funds.
India's life insurance industry is expected to grow by around 10 per cent in 2010 over the previous year, mainly by improving efficiency but also by expanding in small towns and villages, as per industry experts. A better planned sales mix of unit linked insurance policies and more traditional endowment & term insurance plans would be a good bet.
In India, the life insurance industry was opened up about a decade ago with the dismantling of LIC's monopoly. The country has 23 life insurers with assets worth Rs10 trillion.
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