The first-year premium of life insurers increased by 10.73 per cent to ₹2,14,673 crore in FY19 from ₹1,93,866 crore in FY18.
This marks about 300-basis point decrease in the growth. The first-year premium had increased by 13.5 per cent in FY18.
An analysis of data released by the Insurance Regulatory and Development Authority of India (IRDAI) shows that growth in FY19 was driven by a 39 per cent increase in group non-single premium.
Life Insurance Corporation of India registered 5.68 per cent growth in premium at ₹1,42,192 crore (₹1,34,552).
The total first-year premium of 23 private life insurers went up by 22.2 per cent to ₹72,481 crore.
While LIC enjoyed a market share of 66.24 per cent, its private sector peers’ market share stood at 33.76 per cent.
“The year was challenging indeed, with many headwinds such as markets not doing quite well. Things picked up only in the last four months for many industry players,” RM Vishakha, MD and CEO, India First Life Insurance Company Ltd, told BusinessLine.
While the growth in group non-single premium did make an impact, there was a traction in retail and individual policies as well, which added up to the performance, she said. India First Life registered 39.94 per cent growth in first-year premium.
However, the CEO of a leading insurance company was less upbeat. “We seem to be having a job-less growth which does not augur well for life insurance. The economy needs to be revived,” the CEO said on the condition of anonymity.
Gross premium underwritten by non-life insurance companies increased 12.91 per cent to ₹1,70,111 crore, against ₹1,50,662 crore in the previous fiscal.
