An exciting five years

It has been five exciting years for the domestic private life insurers. The industry witnessed impressive growth rates, entry of more players and even had some promoters cashing out their stakes. The industry also saw the insurance regulator cracking the whip where needed.

Chennai: Establishing around 2,550 offices and pumping in a total capital of around Rs4,660 crore, the new insurance companies have changed the industry's face.

C S RaoSpeaking about the industry's growth post liberalisation the Insurance Regulatory and Development Authority's (IRDA) chairman C S Rao says, "The first year premium of the life insurance industry has grown by 260 per cent to Rs25,350 crore for the year ending 31st March, 2005 as compared to Rs9,709 crore in the year 2000-01." (See )

Adds Birla Sun Life Insurance Company Limited CEO Nani B Javeri, "The industry has grown more over the last five years than its average growth over the earlier five years. Interestingly in this short period, private players have cornered nearly 26 per cent market share." (See )

S V MonyAccording to S V Mony, secretary general, Life Insurance Council, the private life insurers have proved wrong the prophecies of the pundits predicting not more than 10 per cent market share in a 10-15 year time frame. (See )