India: Life Insurers’ Premium Increases

The following article was provided by Prudent, Asinta’s partner in India.

PTI | Jun 22, 2016,

NEW DELHI: The new premium collected by life insurers rose by 26.6 per cent in May to Rs 106.1 Billions. The insurers had collected new premium of Rs 83.8267 Billions in the same month of 2015.

Of all the 24 life insurers, private sector companies witnessed an increase of 25.8 per cent in new premium collection at Rs 32.4835 Billions for the month of May. It was at Rs 25.8089 Billion a year ago, data from insurance regulator IRDAI showed.

However, for state-run Life Insurance Corporation of India (LIC), the collection from new premium rose to Rs 73.6175 Billions in May, up 27 per cent from the year-ago period.

Its new business premium stood at Rs 58.0178 billions in the same month of 2015.

Among the top private sector performers, SBI Life, HDFC Standard Life, Exide BSE 3.13 % Life, Kotak Mahindra Old Mutual Life showed healthy rise in their new business premium. Their new collection rose to Rs 8.4208 Billions, up 156 per cent (from Rs 3.2862 Billions year ago); Rs 5.0259 billions, up 38.3 per cent; Rs 1.2746 billions, up 256 per cent and Rs 1.9766 Billions, up 41.4 percent, respectively.

“We have effectively activated the various channels of our premium collection. Of the four-five such channels, individual agents and bank channels have been activated the most. Earlier the company was tapping potential from only a limited number of bank branches”, Arijit Basu, MD & CEO SBI Life Insurance said.

But last year onwards, the banking channels as well as the individual agents have been incorporated in a massive manner to sell insurance products, Basu said.

Among others, Birla Sun Life collected a premium of Rs 1.8891 Billions (up 13.6 per cent); Max Life Rs 1.6995 Billions (up 31.7 per cent); Canara HSBC OBC Life Rs 663.2 Million (up 87.88 per cent) and IDBI Federal Life Rs 406.5 Million (up 63.5 per cent); Bharti Axa’s premium increased to Rs 396.9 Million from Rs 352 Millions

Those registering a fall in collection during the period include ICICI Prudential Life Rs 3.8739 Billion (down 25.5 per cent); Reliance Life Rs 575.9 Million (down 50 per cent ) Bajaj Allianz Rs 2.1622 Billion (down 17.4 per cent); Future Generali Rs 367.1 Million (down 11.2 per cent) and Star Union Dai-Ichi Life Rs 276.6 Million (down 70.6 per cent).

Among others, Sahara Life collected a paltry premium of Rs 10 Million as against only Rs 11.6 Millions in the year-ago period.

In April-May of the current fiscal, the new premium collection of all life insurers stood at Rs 18,582.64 crore, from Rs 13,650.96 crore a year ago.

Thanks again to Prudent for providing us with this article.