Life Insurance coverage Corporations Clock A 25.28% Drop In Premiums, Reveals Information

MUMBAI: The life insurance coverage trade reported a 25.28 per cent decline in new enterprise premium earnings in November 2023 to Rs 26,494.83 crore from Rs 34,588.8 crore recorded a 12 months in the past. The autumn in group premium and alter in taxation norms for insurance policies with the next ticket measurement dragged the premiums of the state-run Life Insurance coverage Company of India (LIC) and personal insurers, respectively.

In response to the information launched by the Life Insurance coverage Council, the premium of personal insurers slipped 9.33 per cent Y-o-Y to Rs 10,360.29 crore from Rs 11,426.73 crore on account of a change in product combine as a result of measures taken to counter the affect of tax imposed on the premiums of Rs 5 lakh. Alternatively, LIC’s premiums dropped by 32.86 per cent to Rs 16,134.55 crore from Rs 24,032.07 crore on account of a decline in group premiums.

The group premium of LIC dropped by 37.48 per cent to Rs 11,649.54 crore within the reported month from Rs 18,635.93 crore. The autumn within the enterprise has affected the general group premium of the trade which fell by 34.02 per cent to Rs 14,735.49 crore from Rs 22,334.95 crore throughout the time interval.

“In the event you have a look at the numbers, you’ll be able to see the vast majority of the autumn has been within the group premiums, each single and non-single. LIC usually dominates the group section. A fall of their enterprise will have an effect on your entire trade numbers,” mentioned Saurabh Bhalerao, Affiliate Director at CareEdge.

Among the many non-public insurance coverage corporations, SBI Life Insurance coverage, the most important non-public insurer, reported a 9.84 per cent decline in premiums to Rs 2,381.73 crore. HDFC Life Insurance coverage noticed a 20.70 per cent Y-o-Y fall to Rs 2,159.73 crore.

“The underlying theme that’s working by your entire life insurance coverage section for the present 12 months is the change in taxation norms. There may have been a change within the product combine to accommodate this which has affected the non-public insurance coverage gamers,” Bhalerao added.

The person single premium of the insurance coverage corporations slipped by 14.81 per cent to Rs 3,322.48 crore from Rs 3,900.04 crore within the time interval into account. Whereas, the non-public insurers misplaced 18.93 per cent premium within the house to Rs 1,395.1 crore as in comparison with Rs 1,720.81 crore throughout the time interval.

The opposite two listed life insurance coverage corporations aside from LIC, SBI Life Insurance coverage and HDFC Life Insurance coverage, ICICI Prudential Life Insurance coverage posted a development of two.09 per cent Y-o-Y to Rs 1,290.95 crore whereas Max Life Insurance coverage recorded 7.91 per cent development to Rs 748.76 crore.

Within the interval from April 2023 to November 2023, LIC posted a 24.20 per cent Y-o-Y decline in premium to Rs 124,424.31 crore from Rs 164,143.27 crore. Alternatively, the non-public sector reported 11.58 per cent rise within the time interval to Rs 87,266.33 crore.

Among the many non-public sector gamers, SBI Life Insurance coverage noticed 20.90 per cent Y-o-Y enchancment in premiums to Rs 21,393.15 crore, whereas HDFC Life Insurance coverage witnessed 11.51 per cent development in premium to Rs 17,501.43 crore.

ICICI Prudential Life Insurance coverage inched up by 2.01 per cent Y-o-Y to Rs 10,030 crore whereas Max Life Insurance coverage recorded 24.86 per cent development to Rs 5,752.86 crore.

The market share of LIC as of November 2023 inched as much as 58.77 per cent after touching a backside of 57.37 per cent as of August 2023. The market share of personal life insurers at present stands at 41.22 per cent.

Supply: Enterprise Commonplace

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