Insurance sector losing sheen; Operational challenges, delay in FDI forcing some players to exit

All's not well with the insurance sector. Slowing growth, delay in FDI decision and lower profitability have dimmed the lustre of the insurance sector, which was once seen as a panacea for the financial ills of the nation. Promoters, who looked to flip their holdings when FDI norms eased, are losing patience. In 2000, the first set of Indian promoters - banks, automakers, healthcare providers and consumer goods makers - flew into this sunrise sector expecting huge returns. Global insurance giants such as Prudential, Allianz, Standard Life and New York Life were drawn by the huge and growing market.

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