The market share of private life insurance companies has increased to 30% in April-December 2014 compared to 22% 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, HDFC Standard, SBI Life and Max Life increase their market share over LIC.
The market share of private life insurance companies has increased to 30% in April-December 2014 compared to 22% in the corresponding period last year.
IRDAI data shows that the private insurers mopped up new business premium of Rs. 22,110 crore in April-December as against Rs. 18,951 crore in the corresponding period last year, registering a growth of 17%. Private players sold close to 37 lakh policies covering around 4.5 crore lives in April-December 2014.
The growth was mainly due to new business premium collection in non-single premium policies like whole life insurance, term insurance and endowment policies. The 23 private insurance have collected Rs. 12,390 crore from sales of such policies in the first nine months of FY 2014-15 which is at par with LIC (Rs.12,735 crore).
Both ICICI Prudential Life and HDFC Standard are the top grossers among the private insurers in terms of new business premium collection. ICICI Prudential Life collected new business premium of Rs. 3,586 crore in April-December compared to Rs. 2,560 crore in the corresponding period last year, a growth of 40% while HDFC Standard life mopped up new business premium collection of Rs. 3,438 crore, registering a growth of 36%.
Meanwhile, LIC saw its market share slipping to 70% in April-December 2014 as against 78% 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. 51,667 crore in April-December compared to Rs. 65,775 crore in the corresponding period last year, a decline of 21%. The company sold 1.2 crore policies in April-December 2014 compared to 3 crore policies during the corresponding period in 2013.
Overall, the industry saw a decline of 13% in its new business premium collection. IRDAI data shows that the 24 players mopped up Rs. 73,777 crore in April-December 2014 as against Rs. 84,726 crore in the corresponding period in 2013.
The industry sold over 1.60 crore policies in April-December.