Life insurance industry expected to grow by 15 per cent this fiscal year

Life insurance industry expected to grow by 15 per cent this fiscal year

Total premium income (new business plus renewal) is expected to touch Rs 2,55,000 crore for the financial year ending March 2010 compared to Rs 2,21,688 for the corresponding period previous year.

The industry has recorded a robust growth of more than 18 per cent  for the six months period ended September 30, 2009, collecting total premium of Rs.1,01,976 as against Rs.86,571 crore during the corresponding period last year.

As per data released, for all the life insurance companies in India, total renewal premiums for regular Unit Linked Insurance Plans (ULIPs) witnessed a growth of 40 per cent on a year-on-year basis to Rs 25,950 crore as compared to Rs18,506 crore in the same period last year.

While non-linked renewal premium stood at Rs 37,041 crore up from Rs 33,536 crore last year. Total non-linked premiums has increased by 24 per cent to Rs57,314 crore up from Rs46,160 from last year.

New business premium increased by 13 per cent to Rs38,985 crore from Rs34,529 crore for the previous corresponding year.  “Despite the slowdown in the economy, life insurance industry has continued to grow as policyholders are realizing the value of insurance. We continue to be optimistic about the future and expect the industry to grow approximately at 15 per cent,” Mathur said.

Commission expenses have reduced by approximately 76 basis points as compared to March 2009. Total benefit paid to policyholders was Rs.28,373 crore— an increase of 23 per cent- as compared to Rs23,070 crore last year of which death benefit amounted to Rs 3,868 crore. Private life companies paid total benefits of Rs 5,556 crore an increase of 99 per cent from Rs2,798 crore last year. 

Life Insurance companies have more than 11,800 branches of which whopping 8,670 branches were set-up by private sector life insurance companies.  The capital deployed at Rs 26,526 crore by life insurance companies has seen almost 25 per cent jump from Rs 21,248 crore last year, said Mathur.