The domestic life insurance industry registered 22.55% growth for new business premium in financial year 2015-16, largely due to the high growth in the group single premium policy. While private insurers saw their growth at 17.63%, state- run Life Insurance Corporation of India (LIC) registered higher growth at 24.74% in last financial year.
According to the latest data by the Life Insurance Council, life insurance industry saw new business premium at`1.38 lakh crore in FY16, as against `1.13 lakh crore in the previous financial year. Private insurers saw new business premium at `40,983 crore in the last fiscal, as against `34,840 crore in the previous financial year.
Industry officials added that, though life industry has seen growth of 22.55%, bulk of this growth has come from selling group insurance policies. “The industry has seen positive growth; yet growth from business from individual single premium and individual non-single premiums has been very ordinary. It seems the industry needs to work more hard in this financial year, to make the business more profitable,” said a CEO of a top fund house.
LIC saw its new business premium at `97,674.32 crore in the last financial year compared to `78,302.64 crore in FY 15. But even for LIC, an increase of 46.1% was from group single premium policies, Life Insurance Council data shows. “In the last three months, we launched a few products and have seen very positive participation from investors. Last few years were disappointing, but now with new products, we expect to see strong growth even in this financial year,” said a senior member from LIC on condition of anonymity.
Several of the big private large players like Birla Sun Life, HDFC Standard Life, ICICI Prudential Life, SBI Life among other posting growth in the range of 14-30% in the last financial year. SBI Life, which registered 28.55% growth in FY 16 saw positive growth.