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.