New business premium of life insurance companies declines 25% in May

For the most part of April and May, the country was in a lockdown and businesses found it difficult to conduct their operations, despite some relaxations from the government

For the second consecutive month in 2020-21 (FY21), new business premiums (NBP) of life insurance companies have recorded negative growth owing to Covid-related disruptions.

In May, NBP of life insurers contracted 25.4 per cent to Rs 13,739 crore, from Rs 18,414 crore in the same period a year ago.

In the first two months of FY21, life insurers saw their NBP fall almost 30 per cent to Rs 20,466.76 crore, compared to Rs 28,395.90 crore in 2019-20.

NBP is the premium acquired from new policies for a particular year. Further, the overall sum assured, too, declined 20.2 per cent, from