Life insurance industry see 9% drop in premiums
Apr 18 2012 , New Delhi
The life insurance industry reported 9.21 per cent decline in new business premium collections in financial year 2011-12. The decline is mainly due to non-existent pension products in the market and change in guidelines for unit-linked insurance policies (Ulips).
As per Insurance Regulatory and Development Authority (Irda) data released on Wednesday, 24 life insurance companies have managed to collect new business premium of Rs 1,14,232.73 crore in 2011-12, compared with collections of Rs 1,25,826.03 crore in the previous year.
Hit by the continuous decline in new sales, life insurance companies have stated focusing on their renewal premiums, both from Ulips and traditional products.
“The industry has been witnessing negative growth for quite some time, however, that is changing now, slowly. Also, the equity market has shown some positive signs earlier this year, so Ulip sales have also started to pick up,” said Amitabh Chaudhry, managing director and chief executive officer of HDFC Standard Life Insurance.
Collections from individual single-premium policies witnessed a sharp fall of 48.70 per cent, with the life insurance industry collecting Rs 18,401.75 crore from their single-premium individual policies in 2011-12, while they had collected Rs 35,873.52 crore in the previous year.
Sale of regular premium individual and group policies recorded a marginal decline of 1.45 per cent and 1.84 per cent, respectively. Individual regular premium collection stood at Rs 46,101.38 crore for 2011-12 and regular premium group policies accounted for Rs 16,505.63 crore.
Private insurance companies have registered a decline of 16.92 per cent in first year premium collections, while collections of government-owned Life Insurance Corporation of India (LIC) fell by 5.70 per cent.
Although, most insurers have posted a decline, some insurers have managed to register growth. MetLife India Insurance managed a growth of 52.69 per cent with collection of Rs 1,074.90 crore in 2011-12, IndiaFirst Life Insurance and DLF Pramerica Life Insurance witnessed a growth of 39.38 per cent and 38.94 per cent, respectively, in financial year 2011-12.
General insurance companies on the other hand, registered healthy growth of 23.16 per cent in premium collections. Total collection of general insurance companies for 2011-12 was Rs 58,344.15 crore, compared with Rs 47,372.78 crore in the previous year.
Four government-owned non-life insurers, New India, National Insurance, United India and Oriental Insurance together collected Rs 30,531.61 crore during 2011-12, a growth of 21.39 per cent over Rs 25,151.83 collected in 2010-11.
Private non-life insurers registered a growth of 25.01 per cent. Total premium collection was Rs 24,230.36 in financial year 2011-12, compared with Rs 19,382.67 crore during 2010-11.
sagarsen
@mydigitalfc.com
As per Insurance Regulatory and Development Authority (Irda) data released on Wednesday, 24 life insurance companies have managed to collect new business premium of Rs 1,14,232.73 crore in 2011-12, compared with collections of Rs 1,25,826.03 crore in the previous year.
Hit by the continuous decline in new sales, life insurance companies have stated focusing on their renewal premiums, both from Ulips and traditional products.
“The industry has been witnessing negative growth for quite some time, however, that is changing now, slowly. Also, the equity market has shown some positive signs earlier this year, so Ulip sales have also started to pick up,” said Amitabh Chaudhry, managing director and chief executive officer of HDFC Standard Life Insurance.
Collections from individual single-premium policies witnessed a sharp fall of 48.70 per cent, with the life insurance industry collecting Rs 18,401.75 crore from their single-premium individual policies in 2011-12, while they had collected Rs 35,873.52 crore in the previous year.
Sale of regular premium individual and group policies recorded a marginal decline of 1.45 per cent and 1.84 per cent, respectively. Individual regular premium collection stood at Rs 46,101.38 crore for 2011-12 and regular premium group policies accounted for Rs 16,505.63 crore.
Private insurance companies have registered a decline of 16.92 per cent in first year premium collections, while collections of government-owned Life Insurance Corporation of India (LIC) fell by 5.70 per cent.
Although, most insurers have posted a decline, some insurers have managed to register growth. MetLife India Insurance managed a growth of 52.69 per cent with collection of Rs 1,074.90 crore in 2011-12, IndiaFirst Life Insurance and DLF Pramerica Life Insurance witnessed a growth of 39.38 per cent and 38.94 per cent, respectively, in financial year 2011-12.
General insurance companies on the other hand, registered healthy growth of 23.16 per cent in premium collections. Total collection of general insurance companies for 2011-12 was Rs 58,344.15 crore, compared with Rs 47,372.78 crore in the previous year.
Four government-owned non-life insurers, New India, National Insurance, United India and Oriental Insurance together collected Rs 30,531.61 crore during 2011-12, a growth of 21.39 per cent over Rs 25,151.83 collected in 2010-11.
Private non-life insurers registered a growth of 25.01 per cent. Total premium collection was Rs 24,230.36 in financial year 2011-12, compared with Rs 19,382.67 crore during 2010-11.
sagarsen
@mydigitalfc.com
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