The Economic Survey 2007-08 says the number of participants in the insurance sector has gone up to 37 from six insurers in the year 2000 in the life, non-life and re-insurance segments and specialised insurers that include Export Credit Guarantee Corporation; Agricultural Insurance Company and two stand along health insurance companies. Of the 17 life insurance companies 15 are joint ventures with foreign partners.

In the Life Insurance Industry, the first year premium underwritten during the period under report was Rs44,696 crore as against Rs44,073 crore in the corresponding period of the previous year. The total premium underwritten by the industry has grown from Rs34,898 crore in 2000-01 to Rs1,56,041 crore in 2006-07.

During the year, the non-life insurers underwrote premium of Rs18,509 crore during April to November 2007 as against Rs16,560 crore in the corresponding period of the previous year. After de-tariffing, while the growth in premium has slowed down on account of reduction in rates, the number of policies underwritten has shown an increase.

The Economic Survey says the insurance regulator IRDA has carried forward the process of detariffing of the general insurance sector, creation of the motor pool effective 1 April 2007 during 2007-08. It says several policy initiatives were taken in the insurance sector including de-tariffing of the general insurance industry, obligations towards the rural and social sectors and micro insurance.

With a view to synergising the efforts of all state governments, which are promoting the poverty alleviation programmes, IRDA has asked state governments to publicise the concept of micro-insurance through their various agencies. Till 1 February 2008 approximately 2.85 lakh employees were covered under the 'new pension system' (NPS) and approximately Rs1,177 crore, including the government's contribution and interest component had been credited into the pension account. 19 state governments have also notified similar schemes for their new recruits.

Pension fund regulator
The Pension Fund Regulatory Act Development Authority (PFRDA) has appointed three sponsors for pension funds for managing the corpus under the new pension system for the Government employees after due consideration. The entire architecture of the NPS is expected to be operationalised by 31 May 2008.

The Economic Survey says that the growing importance of insurance and pension funds would provide impetus and broaden the horizon of the Government securities market.