Life insurance policy sales decline in last 3 yrs

India Infoline News Service | Mumbai |

In 2011-12, number of policies decreased 8.2% to Rs. 44.1 million and premiums plunged by 22.12% to Rs. 647.72 billion

During the last three years, life insurance policy sales have been on a decline primarily due to fall in sale of ULIPs (unit linked insurance policies) after IRDA (Insurance Regulatory and Development Authority) brought a change in regulations for these products in 2010.  

In 2011-12, number of policies decreased 8.2% to Rs. 44.1 million and premiums plunged by 22.12% to Rs. 647.72 billion. While during FY13 (up to December 2012), the number of polices were down by 0.1% at Rs. 26.9 million and premium were up by 3.96% to Rs. 406.86 billion.

“IRDA has informed that there has been a decline in terms of number of policies in the last three years. The decline can be attributed to fall in sale of (life insurance) policies in the ULIP segment which contributed to the growth earlier and other general prevailing market conditions in the country.” minister of state for finance, Namo Narain Meena said in a written reply to Parliament.
 

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