Pvt life insurers report significant policy lapse ratio in FY12

India Infoline News Service | Mumbai |

Birla Sun Life Insurance posted lapse ratio of 51%

Over 16 million investors didn’t renew their traditional insurance plans worth Rs. 1.9 trillion (total sum assured) in 2011-12, registering a two-fold jump from 2008-09, according to IRDA’s (Insurance Regulatory and Development Authority) Handbook of Statistics data.

Private insurance companies reported significant lapse ratio in their life insurance policies in FY11-12 as a lot of investors didn’t pay their renewal premium.

Birla Sun Life Insurance posted lapse ratio of 51%, while Future Generali witnessed lapse ratio of 49% in FY11-12, according to IRDA’s (Insurance Regulatory and Development Authority) Handbook of Statistics data.

ICICI Prudential witnessed lapse ratio of 42%, whereas Bharti Axa registed lapse ratio of 36% in FY11-12.

Lapse ratio refers to the ratio of the number of policies that lapse during a period to the total number of policies written at the beginning of that period.

However, Life Insurance Corporation maintained lapse ratios at 4%-5% over the last few years. 
 

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