Irdai says Ulip share in new premiums rose in FY15

Unit-linked insurance products (Ulips) saw a rise in market share in FY15, said the Insurance Regulatory and Development Authority of India (Irdai) Annual Report for 2014-15. The regulator said that Ulips registered a growth of 10.85 per cent in premiums from Rs 37,544.08 crore in 2013-14 to Rs 41,616.94 crore in 2014-15.

The growth in premium from traditional products was 3.51 per cent, (Rs 2,86,484.20 crore in 2014-15 as against Rs 2,76,757.58 crore in 2013-14). Accordingly, the share of Ulips in total premium increased to 12.68 per cent in 2014-15 as against 11.95 per cent in 2013-14.

Also, on the basis of total premium income, the market share of Life Insurance Corporation decreased from 75.39 per cent in 2013-14 to 73.05 per cent in 2014-15.

The market share of private insurers increased from 24.61 per cent in 2013-14 to 26.95 per cent in 2014-15.

With respect to life insurance, there was also an increase in the number of offices. IRDAI Annual report said that the decreasing trend of number of life insurance offices (which had continued until 2012-13) had reverted from 2013-14 and there was a marginal increase in 2014-15 at 11033 from 11032 of the previous year.

In the general insurance space, IRDAI said that The net incurred claims of the non-life insurers stood at Rs 55232 crore in 2014-15 as against Rs 49179 crore in 2013-14. The incurred claims exhibited an increase of 12.31 per cent during 2014-15.

Insurance industry had seen a lot of misselling complaints classified under unfair business practices. IRDAI's Annual Report showed that complaints from this segment came down to 52 per cent in 2014-15 from 56 per cent in 2013-14. However, unfair business practices constituted the largest class of complaints.

In the non-life insurance industry, Integrated Grievance Management System data indicated that claims related complaints constituted major chunk of the complaints during 2014-15.