LIC accounts for bulk of the growth; private players together register a decline
According to IRDA data, life insurers have collected premium of Rs 31180 crore in July compared to Rs 26795 crore last year. The sector has overall reported a 16 percent increase in business premium for the month of July compared to the same period last year.
Data issued by IRDA reflect that the giant public sector player, LIC’s premium increased to Rs 23858 crore from Rs 19407 crore during the same period last year. Private sector insurers reported a combined business of Rs 7388 crore compared to Rs 5952 crore the previous year.
Among private sector players, ICICI Prudential life leads the race by reporting a collection of Rs 1400 crore compared to Rs 1120 crore followed by HDFC Standard that saw an increase in premium to Rs 935 crore from Rs 827c rore. Reliance Life Insurance reported a decline in collection of Rs 348 crore compared to Rs 385 crore and Met Life insurance reported a premium collection of Rs 267 crore compared to Rs 551 crore.
Private players will take more time to report positive growth because of the frequent changes in norms announced by the regulator. Moreover, the new product design drafted by IRDA will also act as a hindrance to growth, reveals a senior official of a life insurance company.