Life insurance sector to grow 12-15% in FY 16

India’s life insurance industry is likely to grow by 12% to 15% in the current financial year due to improved market scenario and the governments push to improve insurance penetration in the country according to rating agency ICRA.

The sector is expected to grow this fiscal on an Annual Premium Equivalent (APE) basis compared to 9 per cent decline in FY15 on the back of improved capital market scenario, initial signs of improvement in economic indicators and stronger thrust by the government ICRA said in a report.

“We believe that key structural drivers for the industry remain intact and an expected recovery in the economy could provide impetus to the industry” ICRA senior vice-president and co-head Financial Sector Ratings, Karthik Srinivasan told.