The life insurance industry continued its growth in August as private life insurance players saw their annual premium equivalent (APE) grow 29% year-on-year for the month. Life Insurance Corporation of India (LIC) saw its APE lower than private players at 9.3% year-on-year at Rs 2,007.9 crore in August, suggest the data from Edelweiss.
Senior officials in the insurance industry said with rising equity markets, a strong growth is being witnessed in unit-linked products at much faster pace compared to traditional products.
“In our view, rising financial savings and higher inflows post demonetisation helped the industry register impressive growth. Further, we anticipate proclivity for financial savings to continue and industry growth momentum to sustain,” said Edelweiss in its insurance report.
Players such as Bajaj Allianz, Kotak Life Insurance, IndiaFirst Life Insurance and SBI Life Insurance continued to see positive APE growth.
According to the data from Insurance Regulatory and Development Authority of India, private insurance companies grew 18.34% year-on-year in new premiums at Rs 18,251.98 crore in the current financial year, against Rs 15,423.06 crore in the corresponding period last fiscal. The insurance industry saw new year premium for the month of August at Rs 17,513.44 crore as against Rs 14,282.45 crore in August last year, Irdai data showed.