ULIPs have been seeing a decline in their share of new policies issued, for the last two years. This is due to a gradual & steady increase in the volumes of traditional insurance products like - term plans, endownment policies, money back plans & retirement plans.

With new & rigourous IRDA guidelines on ULIPs, agents have also started re-focusing on the traditional plans as the incentives are not capped here.
For the insurance companies also, a higher share of traditional plans gives a healthier portfolio and a higher valuation.

In the past the buoyant economy & stock markets provided insurance companies an easy tool to ride the wave- in the form of ULIPs. But lately they have realised that long term predictability of premium inflow is a critical aspect of valuation.

It is expected that by next year , ULIPs share of incremental business might come down to 65-70% as against 80% till last year.