Life insurers premium collection up 2.3% in October

LIC sees a 4% rise in new business premiums

The premium collections of life insurers stood flat with a 2.3 cent rise in October 2012 at Rs 6,851 crore, compared to the same month last year, according to data from Insurance Regulatory and Development Authority (Irda). While the new business premiums of private life insurers was marginally down with a on% drop in October 2012 compared to October 2011, Life Insurance Corporation of India (LIC) saw a four% rise in new business premiums.

For the period from April to November 2012, the premium figures saw a drop of 3.4% and stood at Rs 53,814 crore, compared to Rs 55, 738 crore in the same period last year. Among the public and private insurers, private insurers had a 5% drop in premiums for the April to October period, compared to corresponding period last year, while LIC saw a 3% drop in premiums for this period on a year-on-year basis.

Private sector insurers also saw a 15% drop in policies in this period (April to October) compared to last year, while LIC saw a two% rise in policies in the same period compared to 2011. For the month of October 2012, on a y-o-y basis, private life insurers witnessed a 8% drop in policies, while LIC saw a 11% rise in number of policies.

Among the private insurers, Edelweiss Tokio Life Insurance saw the highest growth in new business figures with the new premium figure standing at Rs 14 crore in April to October period, compared to Rs 1 crore in same period last year.

Due to the stagnant performance, the market share of the private life insurance companies in the industry fell to 25.5% in April to October 2012 period, compared to 26% in last year. In October too, the market share of private insurers stood at 31% compared to 32.2% in October 2011. This has led to a situation where the rest of the market share of the life insurance industry is held by LIC.