Private insurers' individual, group single premiums for May 2017 see a drop

Life insurers saw a 24% decline in lives covered under group scheme for May 2017

Private life insurers reported a slump in premiums earned in both individual single premium and group single premium categories on a month-on-month (m-o-m) basis and the twelve-month ending May 2017.

While the decline in the month of May 2017 was 12.8 per cent and 26.58 per cent in the individual and group single premium segments, respectively, the decline in the twelve-month period ending May was 10 per cent and 24.43 per cent, repectively for individual and group single premium categicories, according to the Insurance Regulatory Development Authority of India’s (Irdai) business figures for the month.

LIC’s individual single premium for the month of May 2017 fell by 3.79 per cent whereas for the period ending May 2017 the individual single premium plummeted by 41 per cent against period ending May 2016. Unlike the private players, LIC’s group single premium saw a slight increase of 0.44 per cent in the month of May 2017 as opposed to May 2016. However, for the twelve months ending May 2017 it declined by 10.7 per cent.

Surprisingly, the number of lives covered under Group schemes plummeted by 67 per cent for LIC and 18.67 per cent for private insurers in the period ending May 17 against May 16 (y-o-y). While for the month of May 17, the lives covered under group schemes declined by 24 per cent for private insurers and LIC saw a decline of 25.5 per cent.

Moreover, the group non-single premiums earned by both private players and LIC decreased by 69 per cent and 70 per cent respectively for the month of May 17. The decline in non-single premiums earned by both private and public players for the period ending May 17 as opposed to May 16 decreased by 65 per cent and 74.55 per cent respectively.

The number of policies issued by the insurance companies in the month of May 17 declined by 83.72 per cent as well the policies issued during the period ending May 17 declined by 82.65 per cent against the period ending May 16.

Premium income for Life Insurance companies, however, grew by 4.5 per cent in May 2017 and stood at Rs 3,394.26 crore against Rs 3,248.35 crore in May 2016. Moreover, the life insurers saw an 11.22 per cent increase in the amount of premiums earned in the year ending May 2017 to Rs 18,788.37 crore from Rs 18,582.6 crore in May 2016.

Both the private players and LIC saw a 23.87 per cent and 5.59 per cent increase in the number of policies issued in the twelve months ending May 17 from May 16, respectively. However, LIC reported a decline of 3.17 per cent in May 2017 in the number of policies issued against May 2016.