Index of Paper Presentations for the Parallel Sessions - Academy of ...

The percentage of ULIP business to the total business increases year on year where as the percentage of Non-linkedbusiness reduces. The implication is that the growth emanated from semi urban and urban centers and also from theaffluent segments of the rural areas as the minimum ticket size of a ULIP policy is generally Rs. 10,000 per year.The rural poor who are at the bottom of the pyramid with lesser disposable incomes may not find it convenient totake up these types of policies. In order to boost up volumes, companies are resorting to high ticket policy sale andnaturally the needs of less income groups in rural areas are not addressed. This has resulted in the lower percentageof Non-linked business to the total.Existing Policy HoldersThe Boston Consulting Group (BCG) in the year 2007 analyzed that insurance is linked with income. Lesser incomegroups in India have lesser percentage of insurance policies. 87% of households with less than Rs 45000 income peryear in India do not posses life insurance. 76% of households with incomes Rs 45000 income per year to Rs 90000per year do not possess life insurance. Table 3 illustrates this point.