Life insurers register 9% rise in individual premium in Apr-Oct
Nov 26 2012 , FC Research Bureau
The growth can be attributed to 21 per cent rise in individual premium collection by Life Insurance Corporation of India (LIC), which collected Rs 21,916 crore till October, against Rs 18,114 crore collected in the same period last year.
Collection from individual regular premium policies grew by 17 per cent to Rs 22,948 crore till October, against Rs 19,607 crore in same period last year.
However, there was a dip of 7.9 per cent in premium collection from individual single premium policies. Insurers collected Rs 7,943 crore till October, compared with Rs 8,625 crore in the corresponding period last year.
On a month-on-month basis, insurers saw a decline of 20.5 per cent in individual premium collection to Rs 4,002 crore in October, against Rs 5,031 crore in September.
Also, collections in October has seen an year-on-year decline of 1.2 per cent, as Rs 4,049 crore was collected in the same month last year.
Private life insurers witnessed 11.3 per cent decline in premium collection from individual segment. They collected Rs 8,975 crore in the April–October period, compared with Rs 10,118 crore collected in the corresponding period last year.
There was a marginal rise of 1.3 per cent in individual regular premium collection by private insurers. They collected Rs 7,844 crore in the seven-month period, compared with Rs 7,746 crore in the same period last year.
“Insurers are focusing on renewals and regular premium policies for long-term growth. This has already started showing its effect and in the next few quarter, we expect a significant impact,” said Rajiv Gupta, executive director of marketing at SBI Life Insurance.
Private insurers saw a steep decline of 52.3 per cent decline in single premium collection. They collected Rs 1,131 crore till October, against Rs 2,372 crore in same period last year.
Out of the 23 private life insurers, only seven managed to show positive growth.