Life Insurance Corporation of India (LIC) continued to grow at a faster pace compared to private insurance players, shows the data from the Insurance Regulatory and Development Authority of India (Irdai).
In the first five months of the current financial year, first-year premiums of life insurance companies grew by 39.84% (year-on-year) at Rs 1.05 lakh crore as compared to Rs 75,588.35 crore in April-August of 2018-19.
Life Insurance Corporation of India (LIC) continued to grow at a faster pace compared to private insurance players, shows the data from the Insurance Regulatory and Development Authority of India (Irdai). Market participants say that, growth in insurance was largely due to the surge in group non-single business and individual single premium business in the April-August period.
The data from Irdai shows that, private players saw first year premiums at Rs 28,480.43 crore in April-August, 2019 as against Rs 22,886.48 crore in the previous financial year, a growth of 24.44%. First year premiums for LIC stood at Rs 77,220.97 crore in the first five months of current financial year compared to Rs 52,701.86 crore in the previous financial year, a surge of 46.52%. Even for the month of August, new business premiums for the life insurance industry grew by 26.37% at Rs 23,554.94 crore compared to Rs 18,639.29 crore seen in August last year.
Tarun Chugh, MD and CEO, Bajaj Allianz Life Insurance said, “Despite the market volatility, we have had a positive swing in our growth numbers, and this not only reiterates our customers trust in the brand, but is also reflective of how life insurance is now being viewed by them. “It’s interesting to see that the industry has been able to make stable growth in these times, yet again indicating that for long term life goals, life insurance is one of the strongest investments to make, no matter how the markets are doing.”
First year premiums for Bajaj Allianz for the period of April-August stood at Rs 1,728.41 crore as against Rs 1,433.23 crore in the previous financial year, indicating a growth of 20.60%. Insurers like HDFC Life, ICICI Prudential Life Insurance, Kotak Mahindra Life Insurance, Max Life, PNB Metlife, SBI Life and Tata AIA Life saw growth in their first year premiums.
In terms of segments, group single policies saw new business premiums for April-August period at Rs 45,007.60 crore as against Rs 43,220.97 crore in the previous financial year, a growth of 4.13%. While group non-single first year premiums stood at Rs 19,370.60 crore as compared to Rs 432.94 crore in the last fiscal. Individual single premium and individual non-single premium grew by 71.98% and 12.22% respectively in April-August period.