India’s life insurers witnessed a slump in new business premium over the preceding month in April amid fresh curbs across the country to fight the severe second wave of coronavirus infections.
New business premium for the insurance companies declined 79.15% over March at Rs 9,738.79 crore, according to data released by the Insurance Regulatory and Development Authority of India. Year-on-year, however, it jumped 33.42%, helped by a low base as the nation was under a complete Covid-19 lockdown that stalled trade.
When compared to April 2019, the industry’s new business premium dropped 4.45% in the reported month.
“While the flavour of FY21 was protection and guaranteed products, we have seen ULIPs (Unit Link Insurance Plans) coming back for the last six-eight months. Going forward, we expect protection non-par and protection sales to grow at higher than linked products,” Nirmal Bang said in a report.
Private Insurers Vs LIC
Private life insurers fared better than Life Insurance Corporation of India in April 2021.
While new business premium for private companies fell 68.74% over the preceding month, that of the nation’s largest life insurer tumbled 84.60%. Year-on-year, private firms and LIC witnessed 47.26% and 21.32% growth, respectively.
Market share of the private sector with respect to the new business premium stood at 50.13% in April 2021, while LIC made up the remaining 49.87%.
The number of life insurance policies sold surged 139.53% over the year earlier in April. Policies sold by the private sector rose 31.61% year-on-year, while LIC’s jumped 274.87%.
Month-on-month, the number of policies sold fell 82.71% for the industry. While the private sector saw a 72.13% decline in number of policies sold, LIC reported an 85.19% fall.