Despite the controversy around regulation of unit-linked insurance plans (Ulips), the life insurance industry managed a healthy 36 per cent growth in new income in April.
According to the latest data released by the Insurance Regulatory & Development Authority (Irda), new business premium income went up 35.64 per cent to Rs 26,379 crore in April as against Rs 19,448 crore in April last year.
After the Securities & Exchange Board of India (Sebi) banned 14 life insurance companies from selling Ulips on April 9, the industry expected sales to fall substantially. A day later, Irda asked insurance companies to ignore the order and continue to do business as usual. Despite Irda’s intervention to protect policyholders’ interest, insurers saw a number of enquiries for withdrawal.
Life Insurance Corporation (LIC), the state-owned insurer who was not served a notice by the market regulator, saw premium income jump 97.5 per cent to Rs 4,173 crore from Rs 2,113 in April 2009. At the same time, private players recorded flat growth.
ICICI Prudential became the second-largest insurer by garnering Rs 303.67 crore in new premium income during April. It recorded the highest growth of 123 per cent in the month.
SBI Life slipped to the third position by registering 60 per cent decline in new sales to Rs 185 crore from Rs 460 crore in April 2009. HDFC Standard Life, which has increased its market share over the last few months, saw a robust 66 per cent increase in new business to Rs 163.84 crore from Rs 98.95 crore in April 2009.
A senior SBI Life executive said the insurer lost around Rs 300 crore of group gratuity businesses in April this year which it got last year.
During the month, group single premium income reported an increase of 61 per cent to Rs 4,359 crore, while group non-single and individual non-single premium recorded a 30 per cent increase.
“If savings are better, investments go up. Also, job stability is better than last year. It is too early to see a trend in terms of sales,” said Rajiv Jamkhedkar, chief executive officer, Aegon Religare Life Insurance.
Insurance company executives said collections in May had been good so far compared to last year. But, they want to wait for another month to read into the impact of the turf war between the two regulators over Ulips.
