The market share of private life insurance companies increased to 27% in the H1FY15 compared to 24% in the corresponding period last year.
Competitive pricing, innovative product design and increasing presence in small towns has helped private sector life insurance companies like ICICI Prudential, Bajaj Allianz and HDFC Standard Bank increase their market share.
The market share of private life insurance companies increased from 24% in April-September 2013 to 27% in April-September 2014.
IRDA data shows that the private insurers mopped up new business premium of Rs.13,345 crore in April-September against Rs. 12,150 crore in the corresponding period last year, a growth of 10%. Private players sold close to 23 lakh policies covering around 2.8 crore lives in H1FY15.
Among private insurers, ICICI Prudential Life topped in terms of new business premium collection. It collected Rs. 2,225 crore in H1FY15. HDFC Standard which was no.1 among private insurers last quarter slipped to second position. It collected new business premium of Rs.2,067 crore.
Meanwhile, LIC saw its market share slipping to 73% in April-September 2014 as against 76% in the corresponding period last year. Experts attribute this decline to the lack of product innovation and a limited focus on unit-linked insurance plans (Ulips) market.
The state owned life insurer collected new business premium of Rs.35,833 crore in H1FY15 compared to Rs.37,906 crore in the corresponding period last year, a decline of 6%. The company sold 73 lakh policies in H1FY15, covering close to 2.6 lives across the country as on September 2014.
IRDA data shows that the 24 players mopped up Rs. 49,178 crore in H1FY15 as against Rs. 50,057 crore in the corresponding period last year, a marginal decline of 2%.
The industry sold over 95 lakh policies in H1FY15.