Faced with the challenge of falling demand for Unit-Linked Insurance Products (ULIPs) and the ongoing jurisdiction between SEBI and IRDA, private life insurers in India are looking to diversify into traditional products by launching whole life and universal life policies.
ULIPs have been the main breadwinner for life insurance companies ever since their launch at the start of this decade. However their share of new business premium has come down in the last 3 years (from 2007-08 to 2009-10). Moreover the sum assured depends on the performance of the fund and market conditions.
This seems to have prompted life insurers to be more innovative and focus on traditional products suitable to Indian conditions and market.
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