New business premiums of life insurance firms decline by 10% in June

Development is a sign that things are picking up after govt decided to gradually unlock because life companies had seen their NBP decline 32.6% and 25.4% in April and May, respectively

While the new business premiums (NBP) of life insurance companies contracted 10.46 per cent year-on-year (YoY) in June, it is, however, indicative of recovery signs after the government decided to gradually unlock. Life insurers had seen their NBP decline 32.6 per cent and 25.4 per cent in April and May, respectively.

In June, life insurers earned NBP to the tune of Rs 28,868.68 crore, compared to Rs 32,241.33 crore in the same period a year ago. NBP is the premium acquired from new policies for a particular year.

In the first quarter (Q1) of the current financial year (2020-21, or FY21), life