iifl-logo-icon 1
IIFL

Invest wise with Expert advice

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

  • Open Demat with exclusive Advice & Services
  • Get a dedicated Relationship Manager to help you grow your wealth
  • Exclusive advisory on 20+ trading & wealth-based investment options
  • One tap Investments, Automated trading & much more
  • Minimum 1 lakh margin required
sidebar image

Life insurance business growth story for June 2022

8 Jul 2022 , 01:12 PM

The IRDAI normally announces the monthly insurance business numbers at the start of the subsequent month. For the month of June 2022, the nodal regulator (IRDAI) has just put out the monthly business numbers. Here are some broad takeaways in terms of numbers.
  1. Needless to say, LIC still dominates the life insurance market but its clout is reducing. If you look at the premium income for June 2022, it was Rs31,255 crore overall, out of which LIC accounted for Rs20,644 crore and private life insurers accounted for Rs10,611 crore. In terms of premium earned, LIC had a market share of 66.05% while private insurers had a market share of 33.95%.
  2. Let us now turn to the mix of the premium collected. In terms of premiums collected in June 2022, LIC had a market share of 79.50% in group single premium and 96.42% in group non-single premium. However, if you look at individual non-single premiums, private insurers had a market share of 62.29% and even in individual single premium, their market share was impressive at 43.69%.
  3. However, the situation changes drastically if you look at sum assured. Here the private life insurers have an overall market share of 85.24%. That is on account of private life insurers selling more of pure risk term cover policies where the ratio of sum assuredto premium is higher. On the other hand, LIC is still focused on endowments, money-backs and ULIPs.
  4. Growth in premiums is where LIC is faltering in June 2022. The industry growth in premiums for June 2022 over June 2021 was just about 4.15%. However, the private life insurers saw premium growth of 29.19% while LIC saw premium de-growth of -5.29%. That is perhaps also reflecting on the stock price.
  5. The LIC June 2022 de-growth could be attributed to a high base as LIC saw record insurance sales during the pandemic. To smoothen this effect, if we consider the first quarter of FY23 ended June 2022, overall insurance premium collections were up 39.73% yoy. However, the private life insurers saw a much healthier growth of 48.75% in the June 2022 quarter while the growth in premium collections of LIC was lower at 35.39%. The month of June 2022 may have been an aberration for LIC due to high base effect, but there is steady loss of market share that LIC has to contend with.
 
Our reading of the life premium collectionsfor June 2022

The table captures premiums across life insurers for June 2022 and for Q1FY23.

Insurer Category Jun 2021 Jun 2022 Growth % Jun-21 YTD Jun-22 YTD Growth % Share
Private Total 8213.20 10610.89 29.19 17124.58 25473.53 48.75 34.58
Individual Single Premium 1215.26 1418.05 16.69 2674.25 3594.26 34.40 43.69
Individual Non-Single Premium 3425.26 4189.31 22.31 7058.07 10380.59 47.07 62.29
Group Single Premium 2651.46 4356.06 64.29 5945.22 9321.71 56.79 20.50
Group Non-Single Premium 5.88 12.49 112.30 34.22 39.02 14.02 3.58
Group Yearly Renewable Premium 915.33 634.98 -30.63 1412.83 2137.94 51.32 96.00
LIC of India 21796.28 20643.67 -5.29 35600.68 48201.00 35.39 65.42
Individual Single Premium 1573.43 1705.56 8.40 3355.47 4633.24 38.08 56.31
Individual Non-Single Premium 2114.01 2583.27 22.20 4656.09 6283.43 34.95 37.71
Group Single Premium 17912.99 16068.57 -10.30 27163.94 36143.86 33.06 79.50
Group Non-Single Premium 160.91 253.88 57.78 330.63 1051.36 217.99 96.42
Group Yearly Renewable Premium 34.94 32.38 -7.32 94.55 89.11 -5.76 4.00
Grand Total 30009.48 31254.55 4.15 52725.26 73674.53 39.73 100.00
Individual Single Premium 2788.68 3123.60 12.01 6029.72 8227.51 36.45 100.00
Individual Non-Single Premium 5539.28 6772.58 22.26 11714.15 16664.03 42.26 100.00
Group Single Premium 20564.45 20424.64 -0.68 33109.16 45465.57 37.32 100.00
Group Non-Single Premium 166.79 266.37 59.70 364.85 1090.38 198.86 100.00
Group Yearly Renewable Premium 950.27 667.36 -29.77 1507.38 2227.05 47.74 100.00

Data Source: IRDAI

One challenge that LIC appears to be facing is that its traditional focus areas like group single premium policies are facing negative growth. That can be attributed to insurance buyers adopting a more risk-off approach to insurance in tough macro conditions. Private insurers have been gaining traction in group premium policies, but that is on a much smaller base, so the growth tends to look inflated.  Growth has been largely focussed on the individual non-single premium space.

Our reading of the sum assured numbers for June 2022

The table captures sum assured across life insurers for June 2022 and for Q1FY23.

Insurer Category Jun 2021 Jun 2022 Growth % Jun-21 YTD Jun-22 YTD Growth % Share
Private Total 357158.47 439118.92 22.95 1050009.60 1192681.24 13.59 85.24
Individual Single Premium 1814.61 1602.65 -11.68 4116.02 4156.44 0.98 54.70
Individual Non-Single Premium 109665.19 107852.31 -1.65 266809.22 284034.39 6.46 70.92
Group Single Premium 55097.09 111823.94 102.96 249261.43 305489.02 22.56 99.92
Group Non-Single Premium 14976.75 14150.29 -5.52 88217.87 30248.35 -65.71 86.17
Group Yearly Renewable Premium 175604.83 203689.73 15.99 441605.08 568753.04 28.79 87.46
LIC of India 92720.41 91688.72 -1.11 150621.41 206553.07 37.13 14.76
Individual Single Premium 1178.00 1384.49 17.53 2446.26 3441.66 40.69 45.30
Individual Non-Single Premium 33136.90 47963.31 44.74 72169.74 116491.36 61.41 29.08
Group Single Premium 54.39 103.63 90.55 128.27 233.14 81.75 0.08
Group Non-Single Premium 1177.50 2117.17 79.80 3217.47 4854.38 50.88 13.83
Group Yearly Renewable Premium 57173.61 40120.11 -29.83 72659.66 81532.54 12.21 12.54
Grand Total 449878.88 530807.64 17.99 1200631.01 1399234.31 16.54 100.00
Individual Single Premium 2992.61 2987.14 -0.18 6562.27 7598.11 15.78 100.00
Individual Non-Single Premium 142802.09 155815.62 9.11 338978.95 400525.75 18.16 100.00
Group Single Premium 55151.47 111927.58 102.95 249389.70 305722.16 22.59 100.00
Group Non-Single Premium 16154.26 16267.46 0.70 91435.34 35102.72 -61.61 100.00
Group Yearly Renewable Premium 232778.44 243809.85 4.74 514264.74 650285.58 26.45 100.00

Data Source: IRDAI

When it comes to sum assured, private insurers have an edge in terms of market share at 85.24%. Private insurers largely specialize in selling pure risk covers as compared to the LIC which has its traditional franchise in endowments and other investment-based policies. This has been the case all along in the life insurance business.

How private life insurance players fared in June 2022

Out of the 23 private life insurance players, the top 5 insurers viz. SBI Life, HDFC Life, ICICI Prudential Life, Bajaj Allianz Life and Max Life accounted for 72.5% of premium collections. Among the larger players, Bajaj Allianz was the sole private life insurer to show over 100% growth in premiums yoy. Other major private life insurers with growth above 50% included SBI Life, Tata AIA and Kotak Mahindra Life.
In the private life insurance space, growth mainly came from the individual single premium and the group single premium segments. Growth in the individual non-single life segment was a lot more subdued in June 2022.

Related Tags

  • LIC
sidebar mobile

BLOGS AND PERSONAL FINANCE

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.