The life insurance industry’s new business premium collection grew by 10.82% in the last financial year, significantly lower than 26.26% growth reported in FY 16-17 shows recent IRDAI data.
The industry received new business premium collection of Rs.1.94 lakh crore in FY 17-18, an addition of Rs. 19,000 crore over the year before.
The slowdown was largely on account of slower growth in new business at LIC. Compared to 27.27% growth in FY 16-17, the industry giant saw an 8.10% growth in new business premium collection in the last financial year. Overall, LIC reported new business premium collection of Rs. 1.35 lakh crore during the year.
Private players too witnessed a marginal slowdown in their new business premium collection (23.84% in FY 16-17 to 17.51% in FY 17-18). However, their rate of growth was more than double that of the industry behemoth. Consequently, the share of private players in terms of new business premium collection grew from 28.89% to 30.64% during the period.
Among private insurers, HDFC Standard Life clinches the top spot in terms of new business premium collection. The insurer collected of Rs. 11,350 crore followed by SBI Life (Rs. 10,966 crore) and ICICI Prudential Life (Rs. 9,212 crore).
Some private players saw a substantial increase in their new business premium in FY 17-18 compared to the year before. HDFC Standard Life came first in this list too with a Rs. 2,653 crore growth in new business premium collection followed by ICICI Prudential Life (Rs. 1,348 crore) and Bajaj Allianz Life (Rs. 1001 crore). Experts attributed this growth to growing distribution network of the private players.
Overall, new business premium contributed to 42.32% of the total premium received by life insurers.