Will life insurers be able to create magic in January-March peak season?

The new business premium of life insurance companies usually sees the highest growth in the March quarter. This is because during this period, people buy insurance as a tax-saving instrument. In fact, more than 40 per cent of total business in a financial year comes from this period.

However, owing to the general macroeconomic situation and less products being available from the Life Insurance Corporation of India (LIC) due to product refilling under the new traditional product regime implemented from January 2014, the overall premium was down.

Private life insurers have seen growth in new premiums in April and December. But since LIC saw a drop in premiums and holds the majority market share, the overall industry premium growth witnessed a decline.

While the sector is optimistic about the season being benign on premium books, a section of insurers are waiting for several products to be approved by the regulator.

With a member-actuary at Insurance Regulatory and Development Authority of India being appointed, after the position remained vacant for the past three years, product approvals are expected to be faster.