Life insurance premium mop-up declines 21%

Indian life insurers recorded a 21.35 per cent drop in premium collection during the first six months of the current financial year. During the April-September period, 23 life insurance companies collected premium worth Rs 49,046 crore by writing new policies, against Rs 62,361 crore in the corresponding period last year.

According to data collected by the Insurance Regulatory and Development Authority, in the same period, premium collection of Life Insurance Corporation (LIC) of India fell 19.6 per cent, while for its private peers, the collection declined 26.1 per cent. LIC collected Rs 36,721.39 crore, while private insurers collected Rs 12,325 crore.

However, compared to August, premium collection in September was down 39.4 per cent to Rs 8,393 crore. During August, the industry had collected premiums worth Rs 13,858 crore, up 62 per cent from Rs 8,511 crore in July.

“The base effect is still showing on the sales numbers. Growth would slowly start to show in the coming months, as the industry is still adjusting to the new regulations which came into effect last September,” said K Sahay, chief executive of Star Union Dai-ichi Life. The gross written premium of the general insurance industry rose 25.8 per cent so far this financial year, compared to the year before. According to data by insurers, the general insurance industry collected premiums worth Rs 28,605 crore by writing new policies during April-September.