This pertains to data on first year premium collections, the number of policies sold and the total sum assured. The macro comparison that IRDA offers on a monthly basis gives a quick insight into how life insurers performed in the previous month as well as on a cumulative basis for the fiscal year to date.
One trend that has been visible in first year premiums is that LIC has been seeing contraction in premiums yoy while private players are still managing to hold on to positive growth. However, doe to the predominant position of LIC, the overall industry level data has been relatively weak. Let us look at the performance of May 2023 across first year premiums, number of policies sold and the total sum assured.
What we read from the First year premium numbers of May 2023
The table below captures the performance of LIC, private insurers and the overall insurance sector for the month of May and for FY24 to date, based on first year premiums.
Insurer |
FIRST YEAR PREMIUM |
||||||
May-22 | May-23 |
YOY |
FY23 (YTD) |
FY24 (YTD) |
YOY |
Market |
|
|
|
|
|
|
|||
Private Total |
8,639.72 |
9,421.51 |
9.05 |
14,862.64 |
16,176.72 |
8.84 |
44.88 |
Individual Single Premium |
1,176.57 |
1,329.66 |
13.01 |
2,176.22 |
2,360.86 |
8.48 |
48.40 |
Individual Non-Single Premium |
3,375.20 |
3,721.63 |
10.26 |
6,191.28 |
6,497.78 |
4.95 |
64.17 |
Group Single Premium |
2,985.43 |
3,635.37 |
21.77 |
4,965.65 |
5,911.98 |
19.06 |
31.34 |
Group Non-Single Premium |
15.55 |
5.03 |
-67.66 |
26.53 |
10.47 |
-60.55 |
1.44 |
Group Yearly Renewable Premium |
1,086.97 |
729.83 |
-32.86 |
1,502.96 |
1,395.64 |
-7.14 |
96.50 |
|
|
|
|
|
|||
LIC of India |
15,840.63 |
14,056.29 |
-11.26 |
27,557.34 |
19,866.39 |
-27.91 |
55.12 |
Individual Single Premium |
1,608.95 |
1,502.68 |
-6.61 |
2,927.69 |
2,517.14 |
-14.02 |
51.60 |
Individual Non-Single Premium |
2,127.22 |
2,104.87 |
-1.05 |
3,700.16 |
3,627.42 |
-1.97 |
35.83 |
Group Single Premium |
11,607.85 |
10,055.02 |
-13.38 |
20,075.29 |
12,954.65 |
-35.47 |
68.66 |
Group Non-Single Premium |
481.97 |
376.51 |
-21.88 |
797.47 |
716.59 |
-10.14 |
98.56 |
Group Yearly Renewable Premium |
14.64 |
17.21 |
17.55 |
56.73 |
50.57 |
-10.85 |
3.50 |
|
|
|
|
|
|||
Grand Total |
24,480.36 |
23,477.80 |
-4.10 |
42,419.97 |
36,043.11 |
-15.03 |
100.00 |
Individual Single Premium |
2,785.53 |
2,832.33 |
1.68 |
5,103.90 |
4,878.01 |
-4.43 |
100.00 |
Individual Non-Single Premium |
5,502.42 |
5,826.50 |
5.89 |
9,891.44 |
10,125.20 |
2.36 |
100.00 |
Group Single Premium |
14,593.28 |
13,690.39 |
-6.19 |
25,040.93 |
18,866.63 |
-24.66 |
100.00 |
Group Non-Single Premium |
497.52 |
381.54 |
-23.31 |
824.00 |
727.06 |
-11.76 |
100.00 |
Group Yearly Renewable Premium |
1,101.61 |
747.04 |
-32.19 |
1,559.69 |
1,446.21 |
-7.28 |
100.00 |
Data Source: IRDAI
Even a cursory glance at the above table would tell us that LIC has been struggling in May 2023 in terms of first year premiums while the private players are still managing to show positive growth on a yoy basis. Here are some of the key takeaways from the table above.
The change to the new tax regime appears to have take away some sheen from LIC business performance, since insurance is unlikely to be the major driver of tax saving.
What we read from number of policies sold in May 2023?
The table below captures the performance of LIC, private insurers and the overall insurance sector for the month of May and for FY24 to date, based on the number of policies sold.
Insurer |
NO. OF POLICIES / SCHEMES |
||||||
May-22 | May-23 |
YOY |
FY23 (YTD) |
FY24 (YTD) |
YOY |
Market |
|
|
|
|
|
|
|||
Private Total |
5,02,415 |
5,28,561 |
5.20 |
9,10,372 |
9,36,938 |
2.92 |
32.82 |
Individual Single Premium |
19,015 |
17,235 |
-9.36 |
35,914 |
33,661 |
-6.27 |
26.18 |
Individual Non-Single Premium |
4,83,067 |
5,10,638 |
5.71 |
8,73,798 |
9,01,972 |
3.22 |
33.14 |
Group Single Premium |
61 |
111 |
81.97 |
123 |
194 |
57.72 |
83.62 |
Group Non-Single Premium |
21 |
10 |
-52.38 |
37 |
19 |
-48.65 |
3.00 |
Group Yearly Renewable Premium |
251 |
568 |
126.29 |
500 |
1,093 |
118.60 |
32.35 |
|
|
|
|
|
|||
LIC of India |
12,47,243 |
11,32,763 |
-9.18 |
21,60,384 |
19,17,459 |
-11.24 |
67.18 |
Individual Single Premium |
66,977 |
57,577 |
-14.03 |
1,17,092 |
94,929 |
-18.93 |
73.82 |
Individual Non-Single Premium |
11,78,310 |
10,73,435 |
-8.90 |
20,40,205 |
18,19,592 |
-10.81 |
66.86 |
Group Single Premium |
133 |
25 |
-81.20 |
164 |
38 |
-76.83 |
16.38 |
Group Non-Single Premium |
492 |
363 |
-26.22 |
747 |
614 |
-17.80 |
97.00 |
Group Yearly Renewable Premium |
1,331 |
1,363 |
2.40 |
2,176 |
2,286 |
5.06 |
67.65 |
|
|
|
|
|
|||
Grand Total |
17,49,658 |
16,61,324 |
-5.05 |
30,70,756 |
28,54,397 |
-7.05 |
100.00 |
Individual Single Premium |
85,992 |
74,812 |
-13.00 |
1,53,006 |
1,28,590 |
-15.96 |
100.00 |
Individual Non-Single Premium |
16,61,377 |
15,84,073 |
-4.65 |
29,14,003 |
27,21,564 |
-6.60 |
100.00 |
Group Single Premium |
194 |
136 |
-29.90 |
287 |
232 |
-19.16 |
100.00 |
Group Non-Single Premium |
513 |
373 |
-27.29 |
784 |
633 |
-19.26 |
100.00 |
Group Yearly Renewable Premium |
1,582 |
1,931 |
22.06 |
2,676 |
3,379 |
26.27 |
100.00 |
Data Source: IRDAI
What did we read from the IRDAI data on policies sold by LIC and the private players? Here are some key takeaways.
LIC has maintained a semblance of dominance in number of policies, but the pressure of the tax shift is clearly showing on the numbers of LIC.
What we read from the sum assured numbers for May 2023
The table below captures the performance of LIC, private insurers and the overall insurance sector for the month of May and for FY24 to date, based on total sum assured.
Insurer |
SUM ASSURED |
||||||
May-22 | May-23 |
YOY |
FY23 (YTD) |
FY24 (YTD) |
YOY |
Market |
|
|
|
|
|
|
|||
Private Total |
4,25,287 |
5,35,023 |
25.80 |
7,53,564 |
10,95,905 |
45.43 |
91.52 |
Individual Single Premium |
1,340 |
1,136 |
-15.20 |
2,554 |
2,014 |
-21.14 |
58.40 |
Individual Non-Single Premium |
94,014 |
1,18,497 |
26.04 |
1,76,183 |
2,22,559 |
26.32 |
79.06 |
Group Single Premium |
1,04,016 |
1,27,243 |
22.33 |
1,93,665 |
2,47,491 |
27.79 |
99.95 |
Group Non-Single Premium |
8,978 |
4,316 |
-51.92 |
16,098 |
13,172 |
-18.17 |
75.83 |
Group Yearly Renewable Premium |
2,16,939 |
3,13,933 |
44.71 |
3,65,063 |
6,10,670 |
67.28 |
94.30 |
|
|
|
|
|
|||
LIC of India |
66,695 |
49,854 |
-25.25 |
1,14,864 |
1,01,586 |
-11.56 |
8.48 |
Individual Single Premium |
1,194 |
890 |
-25.46 |
2,057 |
1,434 |
-30.27 |
41.60 |
Individual Non-Single Premium |
40,258 |
35,010 |
-13.04 |
68,528 |
58,950 |
-13.98 |
20.94 |
Group Single Premium |
93 |
47 |
-49.12 |
130 |
114 |
-11.64 |
0.05 |
Group Non-Single Premium |
1,542 |
1,724 |
11.80 |
2,737 |
4,199 |
53.40 |
24.17 |
Group Yearly Renewable Premium |
23,608 |
12,184 |
-48.39 |
41,412 |
36,889 |
-10.92 |
5.70 |
|
|
|
|
|
|||
Grand Total |
4,91,982 |
5,84,877 |
18.88 |
8,68,428 |
11,97,491 |
37.89 |
100.00 |
Individual Single Premium |
2,534 |
2,027 |
-20.03 |
4,611 |
3,448 |
-25.22 |
100.00 |
Individual Non-Single Premium |
1,34,272 |
1,53,506 |
14.32 |
2,44,711 |
2,81,509 |
15.04 |
100.00 |
Group Single Premium |
1,04,109 |
1,27,291 |
22.27 |
1,93,795 |
2,47,605 |
27.77 |
100.00 |
Group Non-Single Premium |
10,520 |
6,040 |
-42.58 |
18,835 |
17,371 |
-7.77 |
100.00 |
Group Yearly Renewable Premium |
2,40,547 |
3,26,117 |
35.57 |
4,06,476 |
6,47,559 |
59.31 |
100.00 |
Data Source: IRDAI
Here are some of our major takeaways from the sum assured data for May 2023 for the private insurers and for the LIC.
The May numbers surely leaves LIC with serious thinking points, especially in the aftermath of the new tax regime. After all, LIC is now a listed company with a lot of market scrutiny.
Related Tags
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248, DP SEBI Reg. No. IN-DP-185-2016
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.