The life insurance industry began the current financial year on a positive note as new business premium in April grew by 51.33% year-on-year (y-o-y).
The life insurance industry began the current financial year on a positive note as new business premium in April grew by 51.33% year-on-year (y-o-y). The data from Life Insurance Council shows private insurers registered growth in new business premium at 24.21%, while Life Insurance Corporation of India (LIC) saw its growth at 64.1% in April.
Most of LIC’s business premium came through group single and group non-single premium policies. The data from Life Insurance Council shows that in April, LIC saw new business premium at Rs 5,877.95 crore as compared to Rs 3,581.96 crore in April 2015. However out of total new business premium of LIC, Rs 4,258.21 crore came from selling group insurance policies.
Officials in the industry added that in the last few months more focus has been shifted to selling group insurance policies. “Group insurance is a long term money and even corpus is big compared to traditional insurance policies. Till now, LIC was dominant in group insurance business, but now even private players have started aggressively selling group insurance policies,” said a CEO of top insurance company.
In the month of April, life insurance industry received new business premium of Rs 7,972.54 crore as against Rs 5,263.3 crore in April 2015. For private insurers, new business premium for the month of April stood at Rs 2,094.59 crore against Rs 1,686.33 crore in April last year.
Several of the big private players such as Birla Sun Life, HDFC Standard Life, ICICI Prudential Life, Kotak Mahindra Old Mutual Life Insurance, among others have posted growth in the range of 5-20% in last financial year. On the other hand, SBI Life saw its new business premium in the month of April grow by 143.15% at Rs 432.06 crore compared to Rs 177.69 crore last year.
“The growth came from both traditional as well as unit linked insurance plans (Ulips) plans in April.
Despite volatility in the equity markets, we have seen steady flows in the Ulips funds, we believe that going forward growth will be coming from across the product categories,” said marketing officer of leading insurers.