There is a growth potential for the life insurance sector. India's sum assured to the GDP ratio is at 19 percent when you compare that to 100 percent for other Asian countries. The inforce life covers around 10 percent of people having a salary of more than 2.5 lakh per annum so the ratio of protection is lacking and is needed at $16.5 trillion. So, potential growth can be seen at 15 plus CAGR for the next 10 years.

CNBC-TV18’s Abhishek Kothari has more details on whether insurance stocks valuations are running ahead of fundamentals.

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(Edited by : Priyanka Rathi)