iifl-logo-icon 1

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

How life insurance business delivered in November 2022?

12 Dec 2022 , 10:06 AM

However, in terms of yoy growth in new business, it is LIC that continues to dominate the private insurers by a wide margin. Here are some key points that emerge from the latest monthly report put out by IRDAI.

What stands out in the life insurance new business numbers for November 2022

  1. LIC continue to dominate the life insurance market in November 2022 also, with its monthly market share of new business sustaining exactly at the same level as in October 2022. At 67.73%, the market share of LIC in new premium business was exactly the same as the previous month. Overall, the private insurance market share appears to have stabilized in the 30% to 33% range.
  2. The overall life insurance premium income for November 2022 at Rs35,459 crore is 42.31% higher on MOM basis and 30.47% higher on a yoy basis. Out of this overall premium income basket, LIC accounted for Rs24,032 crore and private life insurers Rs11,427 crore. On a 8-months cumulative basis for FY23, LIC has a stable market share of 67.73%; still quite impressive.
  3. How about the premium mix of LIC and the private insurers in FY23? LIC had a market share of 82.70% in group single premium and 97.37% in group non-single premium. LIC virtually dominates the group life cover space due to its strong corporate and institutional relationships and that is where private insurers are struggling to compete with LIC. However, in individual non-single premiums, private insurers had a market share of 64.73% and even in individual single premium, their market share was an impressive 44.34%.
  4. The situation changes drastically if you look at sum assured. Here the private life insurers have an overall market share of 83.92%. What explains this dichotomy? It is due to private life insurers selling more of pure risk term covers where the ratio of sum assured to premium is higher. LIC, predominantly focus on endowments, money-backs and ULIPs for legacy reasons. Hence, it has a lower market share of sum assured since its products are more of savings cum insurance products rather than pure term covers.
  5. Finally, let us also look at cumulative growth in life premiums for LIC and the private insurers for FY23 (April to November). Overall insurance premium collections were up 34.07% yoy. However, private life insurers saw growth of just 18.17% in the 8 months to November 2022 while the growth in premium collections of LIC was an impressive 43.26%. LIC dominated November 2022 in monthly and cumulative FY23 growth.

LIC appears to be getting its act together rapidly, as private insurers face the downside risks of intense competition. For LIC, the bigger challenge would be to ensure that this strong performance also reflects in stock prices.

What we read from life premium collections for November 2022

Here are premiums across life insurers for November 2022 and for the first 8 months of the fiscal year FY23 on a cumulative basis.

Insurer Category Nov 2021 Nov 2022 Growth % Nov-21 YTD Nov-22 YTD Growth % Share
Private Total 11209.75 11426.73 1.94 66184.52 78209.04 18.17 32.27
Individual Single Premium 1353.37 1720.87 27.15 9944.92 11804.31 18.70 44.34
Individual Non-Single Premium 4224.37 5360.89 26.90 28581.14 34070.17 19.21 64.73
Group Single Premium 5038.46 3699.02 -26.58 23264.08 26472.75 13.79 17.30
Group Non-Single Premium 23.00 2.87 -87.53 161.72 100.51 -37.85 2.63
Group Yearly Renewable Premium 570.56 643.09 12.71 4232.65 5761.30 36.12 92.71
LIC of India 15967.51 24032.07 50.51 114580.89 164143.27 43.26 67.73
Individual Single Premium 2125.30 2179.17 2.53 14598.81 14818.92 1.51 55.66
Individual Non-Single Premium 2244.10 2552.72 13.75 16216.08 18566.81 14.50 35.27
Group Single Premium 11042.50 18635.93 68.77 81313.80 126586.33 55.68 82.70
Group Non-Single Premium 465.47 601.73 29.27 1595.78 3718.42 133.02 97.37
Group Yearly Renewable Premium 90.14 62.52 -30.64 856.41 452.78 -47.13 7.29
Grand Total 27177.26 35458.80 30.47 180765.40 242352.32 34.07 100.00
Individual Single Premium 3478.67 3900.04 12.11 24543.73 26623.23 8.47 100.00
Individual Non-Single Premium 6468.47 7913.61 22.34 44797.23 52636.98 17.50 100.00
Group Single Premium 16080.96 22334.95 38.89 104577.89 153059.09 46.36 100.00
Group Non-Single Premium 488.47 604.60 23.77 1757.49 3818.94 117.29 100.00
Group Yearly Renewable Premium 660.70 705.61 6.80 5089.07 6214.08 22.11 100.00

Data Source: IRDAI

LIC continues to display strong growth traction in October 2022, but predominantly focussed on group policies, which constitute 82.70% of their overall premium flows. Unlike in October, the month of November 2022 has seen positive growth in premium collections for the private insurers and also for LIC. In the case of the private sector players, the growth has been decisively positive in individual policies but sharply negative in group non-single premium categories. However, on an overall basis, single premium policies showed positive premium collection growth across categories in November 2022.

How we interpreted the sum assured numbers for November 2022

Here is sum assured across life insurers for November 2022 and for the first 8 months of fiscal year FY23.

Insurer Category Nov 2021 Nov 2022 Growth % Nov-21 YTD Nov-22 YTD Growth % Share
Private Total 368845.08 481700.39 30.60 2810218.56 3447760.67 22.69 83.92
Individual Single Premium 2078.34 1726.39 -16.93 14505.75 12989.45 -10.45 54.96
Individual Non-Single Premium 112296.26 129515.45 15.33 805698.23 870010.62 7.98 71.16
Group Single Premium 109300.41 136062.99 24.49 778032.28 956475.08 22.94 99.92
Group Non-Single Premium 12153.43 15030.94 23.68 157775.65 114953.53 -27.14 88.69
Group Yearly Renewable Premium 133016.64 199364.62 49.88 1054206.64 1493331.99 41.65 84.13
LIC of India 74104.42 71530.39 -3.47 619487.77 660412.37 6.61 16.08
Individual Single Premium 1615.98 1546.37 -4.31 11355.40 10645.42 -6.25 45.04
Individual Non-Single Premium 46779.16 50157.16 7.22 309850.19 352624.40 13.80 28.84
Group Single Premium 66.31 150.24 126.56 465.87 760.55 63.25 0.08
Group Non-Single Premium 1251.28 3662.93 192.73 10844.84 14652.99 35.11 11.31
Group Yearly Renewable Premium 24391.68 16013.69 -34.35 286971.48 281729.01 -1.83 15.87
Grand Total 442949.50 553230.78 24.90 3429706.33 4108173.04 19.78 100.00
Individual Single Premium 3694.33 3272.75 -11.41 25861.15 23634.87 -8.61 100.00
Individual Non-Single Premium 159075.42 179672.61 12.95 1115548.41 1222635.02 9.60 100.00
Group Single Premium 109366.73 136213.22 24.55 778498.15 957235.63 22.96 100.00
Group Non-Single Premium 13404.71 18693.88 39.46 168620.50 129606.52 -23.14 100.00
Group Yearly Renewable Premium 157408.32 215378.32 36.83 1341178.12 1775061.01 32.35 100.00

Data Source: IRDAI

When it comes to sum assured, private insurers clearly have an edge in terms of market share at 83.92%. LIC is building on its term policy sales, but it still has a long way to catch up on sum assured rankings with the private insurers. Clearly, their agency system is attuned to a more commission heavy model of sales. The good news is that, unlike October 2022, LIC saw its sum assured grow by 6.61% yoy, although private insurers grew by 22.7%.

How private life insurers delivered in November 2022

During November 2022, the number of private insurers reduced from 23 to 22, as Exide Life merged into HDFC Life. Out of the 23 private life insurance players, the top 8 insurers in the order of FY23 premium collections were viz. SBI Life, HDFC Life, ICICI Prudential Life, Bajaj Allianz, Aditya Birla Sun Life, Max Life, Tata AIG and Kotak Life accounted for 85.89% of premium collections. This ratio has bounced sharply and could be attributed to the bounce-back in premium income of Bajaj Allianz, Tata AIG and others. For FY23, highest premium growth was visible for Tata AIA Life, Bajaj Allianz and Aditya Birla Sun Life. Life pie is growing but LIC is still taking the lion’s share.

Related Tags

  • Aditya Birla Sun Life
  • HDFC Life
  • ICICI Prudential Life
  • Life insurance
  • Life Insurance Corporation
  • Max Life
  • SBI Life Insurance
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More

Invest Right News

BSE: Firing on all cylinders
10 Apr 2024|12:07 PM
Read More
Knowledge Centerplus
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Securities Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Knowledge Centerplus

Follow us on

facebooktwitterrssyoutubeinstagramlinkedin

2024, IIFL Securities Ltd. All Rights Reserved

ATTENTION INVESTORS
  • Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
  • KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
  • No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.

RISK DISCLOSURE ON DERIVATIVES
  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to Rs. 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.

Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248

plus
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.