As longer life expectancy is expected speculation is rife that this could have an impact on life insurance premiums.

Reports said this would mean new mortality and morbidity table being introduced by the fourth quarter to replace the current one.

The new rates will include individual firm’s claim experience and it will be based on 2006-08 data.

According to the chief executive of an insurance firm the new mortality and morbidity table is being eagerly awaited as it is the first time it will be published in India.

Meanwhile, new figures from the Association of British Insurers (ABI) suggest that 13 per cent of people are cancelling their life insurance policies as the economic downturn continues.

The ABI, according to reports, claims that people are opting to ignore prompts to renew their policies or are cancelling them altogether in order to save money during the credit crunch.

The statistic show that 13 per cent fewer people have life cover than before the recession kicked it.