After witnessing de-growth since 2010, the Indian life insurance industry rebounded in the
first quarter of the fiscal 2015-16 recording a robust 20% growth in new
premium income.
The sector mopped up Rs. 23,570 crore during the 2015 April-June period riding on group single premium policies.
The industry as a whole sold 60% more group single premium policies, mopping up Rs. 12,861 crore in the quarter as against Rs. 8,016 crore in the same period last year.
Group single premium income contributed a whopping 54.6% to the total new business for the industry.
The higher overall growth came despite the largest private sector player ICICI Prudential Life recording a negative growth.
Similarly, Reliance Life, Max Life and India
First have also shown negative growth in the first year premia during the
quarter.
The life insurance industry consisting of the
market leader LIC and 23 private sector players mobilised Rs. 23,570 crore in
new premia, up 20% from Rs. 19,702 crore in the year ago period, as per the
Life Insurance Council data.
The June quarter is usually considered a lean period, while the March quarter, the best, as salaried class normally buy policies in the last quarter to save on income tax.
The higher growth was led by LIC which
clipped at over 31% in the quarter, mopping up over Rs. 5,700 crore in new
premium, while from the private sector side HDFC Life and Bajaj Allianz Life
reported growth of 35% and 71%, respectively in new premium income.
Growth was also aided by a massive 60% surge
in group single policies in new sales.
However, it has recorded a negative growth in
other segments like individual single, individual non-single and group
non-single.
In terms of sale of policies too, the
industry sold 46,44,333 in the reporting period, up 22% as against 38,19,547
polices sold in the same period a year ago.
This is the first time in the past 5 years that the industry has reported growth in new premium business.
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