LIC saw a dip of 19.63% while private sector insurers reported a dip of 26% during the same period
The life insurance companies reported a drop in premium according to the data released by IRDA today. LIC, the giant life insurer has reported a dip of 19.63% in premium while private sector firms reported a sharper drop of around 26% during the same period. Two private insurers claimed that it is mainly because of the base effect. But they are positive on break-even by the end of the current fiscal as they observe the sector is growing month-on-month basis.
“The life insurance industry has reported a negative growth mainly due to the base effect of August and September. The new business sales have not picked as we expected it. However in total business premium, SBI Life is growing over last financial year on yield-to-date (YTD) basis. We have reported a growth of 7.5% this August compared to last year during the same period,” said M N Rao, SBI Life.
He also added that from October onwards the industry would start recovering some losses as the fourth quarter is considered to be a busy phase where all the insurers conduct a lot of activities to increase sales.
The industry had collected Rs 49,064 crore under the new policy sale in the first six months of the financial year compared with Rs 62,361 crore collected in the same period last year. The new norms have changed the product mix of the insurers and it could take time for distributors to adapt to a new set of product selling.