The financial year 2016-17 has started on a good note for the life insurance industry.
The life insurance industry has witnessed a healthy growth of 36% in new business premium collection in the first two months of FY 2016-17. The 24 players mopped up Rs. 18,583 crore in April-May 2016 as against Rs. 13,651 crore in the corresponding period last year, shows the latest IRDAI data.
The growth was largely driven by LIC. The insurance behemoth contributed close to Rs. 13,240 crore in industry’s new business premium kitty in the first two months of FY 2016-17 compared to Rs. 9,384 crore in the corresponding period last year, a healthy growth of 41%. However, the growth has come on account of increase in sale of group single premium policies. The insurer has received over Rs. 8,070 crore in this category.
Meanwhile, private life insurers recorded a decent growth of 25% in their new business premium collection last fiscal. The 23 players have collected close to Rs. 5,343 crore in April-May 2016 as compared to Rs. 4,267 crore in the corresponding period last year.
Among private insurers, SBI Life has mopped up the highest new business premium of Rs. 1,274 crore last fiscal overtaking ICICI Prudential (Rs.665 crore) and HDFC Standard (Rs. 808 crore).
The total number of policies in the industry grew by 3% to 25.8 lakh in April-May 2016 from 25.1 lakh in the corresponding period last year.