Key metrics soar for life insurers in September 

 After having reported consecutive months of business contraction since the outbreak of the pandemic in March, India’s life insurers seem to have finally arrested the dive in September. 
For representational purpose.
For representational purpose.

NEW DELHI: After having reported consecutive months of business contraction since the outbreak of the pandemic in March, India’s life insurers seem to have finally arrested the dive in September. Data from government agencies and industry analysts show that key metrics such as individual weighted received premiums (WRP)—a measure of traction in the retail segment—and, first-year and single premiums have all registered substantial growth during the month. 

The industry’s WRP rebounded to a growth of 4.1 per cent year-on-year (y-o-y) compared to a fall of 2.3 per cent y-o-y in August 2020, while for private insurers the number stood at 3.6 per cent against a contraction of 5.8 per cent in August. “The overall industry, which has reported decline since the Covid-19 outbreak, has thus reverted to the positive trajectory for the first time since January 2020,” Motilal Oswal analysts noted. 

The shadow of the pandemic lays long over the figures for the first half of the financial year (H1FY21), however. While private players' individual WRP declined 11.4 per cent y-o-y, for the whole industry, it dropped by 7.4 per cent. 

According to data from insuarance regulatory body IRDAI, first year premium collections also soared 26.5 per cent y-o-y in September, a far cry from the levels recorded in the previous months — August (14.8 per cent), July (6.9 per cent), June (-10.5 per cent), May (-25.4 per cent), April (-32.6 per cent), and March (-32.2 per cent). 

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