Critics in the life insurance industry have stated that the sector must reinvent itself, if it is to withstand the financial downturn.

With many new regulations, the division is being forced to take a re-look at its existing policies and services.

Despite the overall negativity that surrounds the industry, some do believe that it has the power to fight back and restore itself.

Mr S.B Mathur, Secretary-General, Life Insurance Council, stated: “The market sentiments are improving. The performance of the private companies will improve and they will see good growth.

“There has been rationalisation among players as insurers try to maintain a healthy bottomline. The major players in the industry are recruiting new agents even as they are asking agents who have not done well to leave,” He said.

Despite the positive outlook, Mathur could not give a certain answer to who would survive and who will buckle under the pressure though: “It is a highly capital-intensive business. It is difficult to put in incremental equity for players whose core businesses are not doing well.”