First-year premiums of life insurance companies stood at Rs 1.59 lakh crore between April and January, a rise of 5.32% compared to the previous fiscal. While private insurance companies saw a growth of 22.92% in first-year premiums, Life Insurance Corporation of India (LIC) saw a negative growth of 1.83%.
The data from Insurance Regulatory and Development Authority of India (Irdai) showed that LIC saw its first-year premiums at Rs 1.05 lakh crore in April to January 2019, against Rs 1.07 lakh crore in the previous fiscal. Market participants say that the single-digit growth for the industry is due to the weak performance of individual single premiums and group non-single premiums.
“In this financial year, performance of LIC has remained weak, especially in individual single premiums. However, segments of individual non-single premiums and group single premiums grew in single digit. On the other hand, private players have seen good amount of growth in all segments barring group non-single premiums,” said a senior official from a leading company. The market share of LIC stands at 66.26% at the end of January 2019.
Private insurers saw first-year premiums at Rs 53,645.06 crore in April-January against `43,643.15 crore in the previous fiscal. In the current fiscal so far, insurance companies such as Aditya Birla Sun Life, India First Life Insurance and Tata AIA Life saw premiums growth in excess of 60%. While HDFC Life and SBI Life witnessing a premium growth of 38.45% and 27.32%, respectively, showed the data from Irdai.
For January, life insurers saw first-year premiums at Rs 17,419.76 crore against Rs 12,715.89 crore in the previous fiscal — an increase by around 37%. Officials say last two months will be strong as investors will invest in life insurance for tax saving.