The life insurance industry continued to achieve positive growth in June as private insurers’ annual premium equivalent (APE) grew 28% year-on-year. Life Insurance Corporation of India (LIC), the country’s largest insurer, posted 17% y-o-y growth at Rs 2,113.3 crore in June, lower than its private players, data from Edelweiss showed. Senior officials in the industry say that with rising equity markets, there has been a strong growth in unit-linked products compared to traditional products. “The tilt towards financial savings and higher inflows post-demonetisation helped the industry post impressive growth. We believe proclivity for financial savings will continue and the industry’s growth momentum will sustain,” said Edelweiss in its insurance report. Private insurers like Bajaj Allianz, Kotak Life Insurance, IndiaFirst Life Insurance and ICICI Prudential Life Insurance have continued to see positive APE growth. “In the current financial year, we are seeing growth coming from both individual single premiums as well as individual non-single premiums, while growth in group policies have remained stagnant.
However, the performance of LIC was very strong on group single premium policies followed by individual non-single premiums and individual single premiums policies in the month of June,” added a top official from the leading insurance company. According to the data from Insurance Regulatory and Development Authority of India (Irdai), private insurance companies grew by 12.20% y-o-y growth in new premiums to Rs 9,872.06 crore in the current financial year as against Rs 8,798.34 crore in the corresponding period last fiscal. While overall insurance industry saw new year premium for the month of June at Rs 14,466.13 crore as against Rs 12,810.04 crore in June last year, suggests the data from Irdai. According to the Edelweiss report, “The industry (individual APE) grew >22% YoY spearheaded by private players, who jumped >27% compared to LIC—grew 17% YoY (largely on >24% rise in ticket size, implying dip in number of policies sold). Strong momentum in higher ticket size (private sector ticket size rose ~17% YoY) lent impetus to growth, implying tilt towards ULIPs.”