First-year premium of life insurers increased by 6.6 per cent

Published: 16th November 2013 06:00 AM  |   Last Updated: 16th November 2013 01:53 AM   |  A+A-

Having three years of de-growth, the first-year premium of life insurers increased by 6.6 per cent at Rs 59,057 crore during the first six months of the current financial year ended September, 2013 as against Rs 46,963 crore registered during the same period a year ago.

It may be noted that the suffered a setback with the sector regulator Insurance Regulatory and Development Authority introducing new guidelines in September, 2010 for unit-linked insurance plans (ULIPs). As per the revised norms, IRDA stipulated lower commission for agents and higher lock-in periods as result of which sales took a hit.

Ulips then accounted for over 80 per cent of business of private life insurers. Subsequently, the overall premium income declined from Rs 2.91-lakh crore in 2010-11 to Rs 2.87-lakh crore in 2011-12.

As per the latest business figures released by IRDA, state-run Life Insurance Corporation’s (LIC) first year premium grew by 7.25 per cent in the first six months at Rs 37,906 crore as against Rs 35,341.53 crore posted in the corresponding period last year.

On the other hand, private insurers registered a growth of 4.5 per cent to touch Rs 12,151 crore.  The industry as a whole witnessed growth in premiums, especially in the individual single and group single premium segments.

Recently, Sudhin Roy Choudhury, Member (Life), IRDA, said companies have shown positive growth with the feel-good factor coming back, driven by the new product regime.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp