Do you think Irda has been harsh on the industry, with a slew of cold measures?
Irda has been industry-friendly. The measures will favour the industry in the long run. The guidelines have been bunched but the market is also dramatically changing and one has to respond to change. All the revisions the regulator has come up with are required. Now, both the regulator and the industry should try to dispel the fear about Ulips being high-boost products. Ulips are not bad products but badly priced and badly sold. To my mind, they are better than traditional plans. Do you think new players will be interested in entering the market after the recent tightening? There is cautious optimism. The good news is that there is no uncertainty about the regulatory regime. New players entering the market will have a more realistic approach. We have not seen a full-blown market so far, since penetration of term plans is very low. If newer players do not have access to a cost-effective business model, it will become difficult to run the business. Having a bank as a promoter makes half
