In what would result in improving persistency levels in the life insurance industry, the renewal premium increased by 12.63 per cent to Rs 1,51,812 crore in 2009-10 against Rs 1,34,704 crore collected during 2008-09.
According to the data released by the Life Insurance Council, the representative body of life insurance companies, the total premium went up by 18 per cent during the last financial year to Rs 2,61,025 crore. New business premium income rose by 25 per cent to Rs 1,09,213 crore from Rs 87,006 crore in 2008-09.
Though insurers were very slow in opening new branches, they did open 11,927 branches during the last financial year. In 2008-09, they had opened 11,815 branches. After the global financial crisis in 2008, the industry had focused on consolidation over growth.
“Life insurance companies have been adhering to rural and social sector obligations by covering more than 19.3 million lives in the social sector in 2008-09. Life companies have also sold more than 2.8 crore policies in rural areas in 08 and 09. The Life Insurance industry employs 2.68 lakh people directly and has about 30 lakh agents,” said S B Mathur, Secretary General Life Insurance Council.
As a result of slower growth during the year under review, the total capital deployed went up to Rs.28,929 crore from Rs 24,988 crore.
At the same time, commission as a percent of premium declined by 30 basis points to 6.71 per cent in 2009-10.
The total assets held by the industry went up by 38 per cent during the last financial year to Rs 12, 90,000 crore as on March 31, 2010 compared to Rs 9,34,030 crore at the end of March, 2009.
