NEW DELHI: Private insurers saw their market share rise to 62% during the April-December period from 45% in the same period last fiscal, as per a
data available with the Insurance Regulatory & Development Authority (IRDA). Although there has been a deceleration of growth in the life insurance sector in terms of the total Annual Premium Equivalent (APE), private players recorded around 38% growth over the previous year.
APE captures new premium coming in every year. As per the insurance regulator, the total APE for private insurers during the first nine months of the current financial year stood at around Rs 18,220 crore, compared to Rs 13,214 crore during the corresponding period last fiscal (FY08).
ICICI Prudential, Bajaj Allianz, SBI Life, Reliance Life and HDFC Standard Life are the dominant private players in the sector. The overall insurance industry recorded a marginal growth of around 3% during the period.
Public sector insurer LIC, which is the market leader, recorded a decline of around 28% in its APE collection this fiscal, although it recovered from the sharp drop in November and recorded a 10% growth over October 2008. Its total APE stood at around Rs 11,025 crore compared to Rs 15,249 crore last fiscal. Those who track insurance premium collection said the industry has witnessed a reasonable growth despite the tight financial condition this fiscal.
Max New York Life Insurance director & head agency Rajender Sud said: Life insurance products are perceived as long-term investment wealth creation tools that give a sense of security. Consumers have started valuing financial protection even more in the wake of the slowdown. Others expect a bigger collection in the current quarter.
Bajaj Allianz zonal manager-north and head of pension business Sanjay Kumar Jha said: Normally about 40-45% of our new premium collection comes in the last quarter of every fiscal and we expect a good growth rate over the next two months. We registered around 30% growth in December. There are currently around 21 private players in the industry.
With newer players waiting to tap the market, the sector is expected to grow in the next couple of years. It is estimated that the penetration of life insurance in India is about 4% of the total GDP compared to 8-10% in some of the developed economies and the Asian markets.
Around 24% of Indian households own life insurance policies and the average sum assured per household is just Rs 1,14,450 among the owner households.
APE captures new premium coming in every year. As per the insurance regulator, the total APE for private insurers during the first nine months of the current financial year stood at around Rs 18,220 crore, compared to Rs 13,214 crore during the corresponding period last fiscal (FY08).
ICICI Prudential, Bajaj Allianz, SBI Life, Reliance Life and HDFC Standard Life are the dominant private players in the sector. The overall insurance industry recorded a marginal growth of around 3% during the period.
Public sector insurer LIC, which is the market leader, recorded a decline of around 28% in its APE collection this fiscal, although it recovered from the sharp drop in November and recorded a 10% growth over October 2008. Its total APE stood at around Rs 11,025 crore compared to Rs 15,249 crore last fiscal. Those who track insurance premium collection said the industry has witnessed a reasonable growth despite the tight financial condition this fiscal.
Max New York Life Insurance director & head agency Rajender Sud said: Life insurance products are perceived as long-term investment wealth creation tools that give a sense of security. Consumers have started valuing financial protection even more in the wake of the slowdown. Others expect a bigger collection in the current quarter.
Bajaj Allianz zonal manager-north and head of pension business Sanjay Kumar Jha said: Normally about 40-45% of our new premium collection comes in the last quarter of every fiscal and we expect a good growth rate over the next two months. We registered around 30% growth in December. There are currently around 21 private players in the industry.
With newer players waiting to tap the market, the sector is expected to grow in the next couple of years. It is estimated that the penetration of life insurance in India is about 4% of the total GDP compared to 8-10% in some of the developed economies and the Asian markets.
Around 24% of Indian households own life insurance policies and the average sum assured per household is just Rs 1,14,450 among the owner households.
Source :Economictimes
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