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The growth rate of Indian insurance industry is likely to be less than 5% in the current fiscal, according to industry chamber CII.
"The growth of the Indian insurance industry is projected to remain below 5% in the current fiscal (FY 2013-14)," said a CII survey of 30 leading insurance companies.
It said the non-life insurance companies are found to be more optimistic in their growth outlook as compared to the life insurance companies.
The survey found that 60% of non-life insurance companies would record an average growth of more than 10%.
However, 50% of surveyed life insurance companies are projected to clock negative growth in the current fiscal.
"A facilitative and enabling regulatory and policy environment is critical to ensure that insurance companies in India enter the next stage of growth and evolution on the foundation of greater insurance density and penetration," CII Director General Chandrajit Banerjee said.
The survey assessed the outlook of the insurance sector in India while focusing upon the impact of regulatory and policy environment.
The survey found that increasing the FDI cap from current 26% to 49% is viewed as the next major factor to push the insurance density.
