State-run Life Insurance Corporation (LIC) saw slower growth in the April to December period than players in the private sector, reports fe Bureau in Mumbai. Research from Kotak Institutional Equities shows private players reported 14% growth year-on-year to R15,174 crore in the annualised premium equivalent (APE) while LIC’s APE grew at 4% y-o-y to R17,317.6 crore. Business was particularly dull in December with both private insurers as well as LIC not faring too well.
The APE of the insurance industry grew at just 4% y-o-y to Rs 4,889.7 crore.
Industry experts said weak capital markets has translated into a slowdown for the unit-linked segment of policies. The average policy size in the individual segment for players such as ICICI Prudential Life and HDFC Life has dropped. However, the smaller business volumes may be offset by higher margin business or lower expense overruns as a consequence of declining share of unit-linked policies, experts feel. Over the past couple of months LIC has taken several initiatives such as mobilising agents who had stopped selling LIC policies. The compensation package is also understood to have been bettered.