The domestic life insurance industry has seen a sharp recovery by recording a growth of 25% in 2009-10 against deceleration of 6% registered in 2008-09. The 23 life insurers have mobilised a first year premium of Rs 1.09 lakh crore in 2009-10 compared to Rs 87,108 crore in the previous year. The market share of LIC has also increased to 65% in 2009-10 compared to around 61% in the previous year. LIC, during the year, collected a premium of Rs 70,891 crore compared to Rs 52,954 crore in 2008-09, thereby growing by around 34 % during the year. The other 22 private insurers mopped up a first year premium of Rs 38,399 crore in FY2010, compared to Rs 34,154 crore during the previous year, showing a growth of over 12 %. The private sector, comprising 22 players, collectively sold 1.4 crore policies in FY210, lower than the figure of 1.5 crore in the previous fiscal.
However, the largest player in the life insurance segment, LIC, sold 3.8 crore policies compared to 3.5 crore policies in 2008-09. As a result, the total number of new policies sold by the 23 life insurance companies together covered an additional 5.3 crore lives in 2009-10, compared to about 5.1 crore in the previous year. Among private life insurers, SBI Life emerged as the biggest player. The insurer collected Rs 7,041 crore as first year premium in the last fiscal compared to Rs 5,386 crore in 2008-09, thereby growing by over 30 %.
