First year premium of the life insurers rose by a marginal 1.4% year during the first two months of the current financial year, according to the Insurance Regulatory and Development Authority (IRDA) data.
The combined first year premium of the public and private sector insurers during April-May 2012, increased to Rs. 124.29 billion from Rs. 122.53 billion in the same period a year ago.
First year premium of public sector life insurer LIC (Life Insurance Corporation of India) declined marginally to Rs. 92.15 billion from Rs. 92.73 billion during the same period.
Deepak Yohannan, CEO, MyInsuranceClub, said, “It is interesting to note that private life insurers as a whole have shown a growth, while LIC has declined marginally in premium collection for this period. Within the private players, it seems to be a mixed bag, with almost an equal number of companies showing growth compared to ones that have de-grown. This of course is in the leanest period for insurance sales.”
Pankaaj Maalde head-financial planning, ApnaPaisa.com, said, “These days awareness about term plans is increasing among people. More people buy term plans, which has led to a marginal increase in premium collection and this trend will continue in future as well.”
The combined first year premium of the private sector insurers increased by 7.8% during the first two months of FY12-13 to Rs. 32.14 billion from Rs. 29.80 billion during the same period of FY11-12.
During the same period, private insurer Met Life’s first year premium rose to Rs. 1.62 billion from Rs. 525.5 million, while DLF Pramerica first year premium rose to Rs. 209.6 billion from Rs. 134.3 million.
HDFC Life’s first year premium during the period stood at Rs. 4.23 billion compared to Rs. 2.92 billion.
However, there was a decline in the number of policies issued during the first two months for the life insurers including LIC. The number of policies issued by LIC during the period under review declined to 3.25 million from 3.39 million.
In April-May, 2012, a total of 4.05 million policies were enrolled, down from 4.32 million during the same period a year ago.
Mr Maalde further said, “We strongly advise our clients to separate ‘insurance’ and ‘investment’ need. Now, people are also realising that insurance products come with irrecoverable charges and are not going to help them meeting their financial goals.”