The life insurance industry has gained from the uncertainty over regulation of unit-linked insurance plans (Ulips), the investment-cum-insurance products, during the first quarter of the financial year.

According to data by the Insurance Regulatory and Development Authority (Irda), the new business premium income of life insurance companies went up by 77 per cent in the first quarter. Income from selling new policies went up to Rs 25,522 crore as against Rs 14,456 crore in the corresponding period last year.

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The regulator prescribed new guidelines after it was clarified that it had to right to regulate the product. The revised norms come into effect from from September.

State-owned Life Insurance Corporation of India (LIC) gained the most with an increase of 108 per cent in new business premium income. Its market share increased to 73 per cent. At the same time, private sector insurance companies recorded a 21 per cent increase in income from new policies.

In April, after the regulatory war over Ulips broke, insurance companies increased their sales targets. “We have been pushing policies before the new norms kick in. The new norms will reduce the investible corpus. We have increased our sales target for the quarter,” said a senior executive of a large insurance company.
 

“We have increased our market share because of our attractive products, aggressive and effective marketing strategy and corporate initiatives,” said a senior LIC executive.

New business income collected by ICICI Prudential stood at Rs 1,406.78 crore. SBI Life remained in the third position after registering a nine per cent decline in new sales to Rs 976.29 crore from Rs 1,072 crore in April-May 2009. HDFC Standard Life, which has increased its market share over the last few months, saw a robust 74 per cent increase in new business.

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