Industry favours a hike in foreign direct investment cap, a single regulator for insurance and pension sector and long-term debt papers among other reform measures to boost growth in the insurance segment, a FICCI survey said on Tuesday.

Although there has been expansion in both life and general insurance segment, the survey said lack of clarity of role of brokers, absence of long-term papers, tax issues, FDI cap and lack of depth of financial market in India was hindering the growth of the insurance sector.

The FICCI survey on 'Present State of Indian Insurance Sector,' carried out on 147 players in the insurance industry, said a majority 79 per cent respondents felt there should be one regulator for pension and insurance.

Most of them said government should extend interest subsidy to private players as it was offered to the Life Insurance Corporation of India for its Varishtha Bima Yojana.

They also pitched for hiking the FDI limit from the present 26 per cent. Government should allow them to invest in funds abroad, they said.

About 70 per cent of the players said the tariff regime in general insurance segment should be lifted within 2-4 years.

Although banks are looked upon as an important channel for selling insurance products, the survey said mindset of PSU bank employees and customers, regulatory norms and absence of profit-sharing arrangements were coming in the way of Bancassurance success.

Most of the players said retail shops, medical and grocery stores would emerge as alternate distribution channels for insurance industry.