New business premiums for life insurers witness 26% growth in September

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October 9, 2020 4:30 AM

The individual single premium category is witnessing huge interest from investors, industry players said

LIC saw a fall in its new business premium at Rs 88,018.01 crore in this fiscal, against Rs 89,980.22 crore in the previous financial year.LIC saw a fall in its new business premium at Rs 88,018.01 crore in this fiscal, against Rs 89,980.22 crore in the previous financial year.

New business premiums for the life insurance industry witnessed a growth of 26% in September at Rs 25,366.3 crore, compared with Rs 20,056.7 crore in the same month last year. However, the growth of new premiums for the six months of the current financial year continued to remain negative.

Data from the Life Insurance Council show that up to September this fiscal, life insurance companies saw new business premiums of Rs 1,24,728 crore, compared with Rs 1,25,758 crore in previous financial year, a fall of 0.82%.

Market participants said while the category of individual non-single premium continued to see a negative growth in this fiscal, the individual single premium category is witnessing huge interest from investors.

“The demand for term plans has gone up in the last few months due to the ongoing pandemic, as people have now become aware of the need to have term insurance. Life insurance industry is witnessing a sharp uptake in single premium policies, as many policyholders don’t want to commit investments for the longer duration,” said the CEO of an insurance company.

Data from the Life Insurance Council show that new business premiums for individual single premium for this financial year stood at Rs 20,494.02 crore, compared with Rs 17,667.73 crore in the previous financial year, a growth of 16%.

During the period between April and September, private players saw new business premium of Rs 36,709.63 crore, compared with Rs 35,777.88 crore in the previous financial year, a growth of 2.60%.

LIC saw a fall in its new business premium at Rs 88,018.01 crore in this fiscal, against Rs 89,980.22 crore in the previous financial year.

Private players like Tata AIA Life Insurance, SBI Life Insurance, Max Life Insurance, HDFC Life Insurance, among others, witnessed a positive growth in new business premiums this fiscal till September.

Prashant Tripathy, managing director and chief executive officer, Max Life Insurance, said: “Max Life has continued to deliver positive business performance in the month of Sept’20 with a 16% Y-o-Y growth. We gained 122 basis points private market share and now hold 11.1% market share, led by a 14% growth in case size for the month…”

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