Performance of ULIP Schemes in Indian Insurance Market

Abstract

The Indian insurance industry is in the midst of a churn with the government trying to pass through the Insurance amendment to raise the foreign direct investment to 49%. The spotlight is again on the market related products popularly termed ULIPs since it is combination of security and returns with the latter being given more prominence due to its investments in highly risky securities market. This study aptly looks into the returns generated by all the insurers with regard to their select ULIP schemes and also whether the public sector behemoth LIC is doing well in this sphere.

The study also determines the returns generated per unit of total risk which is very important for the insured as it should be able to justify his investment compared to the traditional products which are risk averse. The suggestions are incorporated to make ULIPs popular since it is losing ground steadily in the Indian insurance industry.