Insurance growth to slow down, says IRDA chief

HYDERABAD: The growth in domestic insurance companies will slow-down to 17% this fiscal compared to 24% last fiscal following a dip in ULIP sales, according to the IRDA chief J Hari Narayan said on Tuesady.

"Ulips have lost their sheen among investors due to the volatility in the market. We see a slow-down in growth and the profitability of insurances companies will be eroded", he said, on the sidelines of a SBI Life Insurance meet today.

The new business premium of life insurers grew by a modest 3% to touch Rs 39,686 crore upto October this year as against Rs 38,614 crore last year. This is in contrast to the blistering growth in Ulips last fiscal when the markets were buoyant. Normally, policy sales are brisk in the fourth quarter of every fiscal.

He also made out a case for a regulatory body for medical service providers. "The onus of setting up a body to oversee hospitals rests with the centre, state and Medical Council of India. It is not under our domain", he said.