Life insurers note 25% drop in new business premiums in May due to Covid-19

In the first two months in FY21, NBP of life insurers dropped almost 30%

For the second consecutive month in FY21, new business premium of life insurance companies have recorded negative growth due to the coronavirus outbreak. In May, new business premium of life insurers contracted 25.39 per cent to Rs 13,739 crore from Rs 18,414 crore in the same period a year ago. In the first two months of FY21, life insurers saw their new business premium fall almost 30 per cent to Rs 20,466.76 crore compared to Rs 28,395.90 crore in FY20.

New business premium is the premium acquired from policies for a particular year.

While private life insurers, 23 in total,