KOLKATA: Despite the economic slowdown, the life insurance industry has witnessed a 66% rise in capital deployed during April-December 2008 at Rs
23,271 crore (Rs 13,990 crore) and nearly the entire sum has been invested by the private sector.
And why not, the sector witnessed a 16% growth in total premium income to Rs 1,21,392 crore during the period against Rs 1,13,048 crore in the previous period despite a 4% decline in first premium income. Total premium includes first premium income as well as renewal premiums for the period. Interestingly, renewal premiums witnessed a near 35% rise.
"Renewals are that part of a person’s wallet that is set aside for the long term. Hence, whatever comes, individuals try and make sure renewals are paid. Additionally, renewals are also directly related to policies sold in earlier years and the industry has been growing at a hectic pace in the past few years," said Mr Subashis Ghosh, senior vice president, Kotak Mahindra Old Mutual Life.
Additionally, benefits paid to policyholders including maturity as well as withdrawals stood at Rs 37,000 crore during the period against Rs 33,800 crore in the previous corresponding period.
As per data released by the Life Insurance Council, the industry body for all the life insurance companies in India, renewal premiums for regular unit-linked insurance plans (ULIPs) witnessed a phenomenal 216% growth to Rs 26,637 crore for the nine-month period ended December 2008 compared to Rs 8425 crore in the previous corresponding period.
While the figure for non-linked premium stood at Rs 52,529 crore, up from Rs. 50268 crore in the previous period.
Additionally, non-linked premiums from single premium policies doubled to Rs 9,976 crore from Rs 4,932 crore, whereas premiums from ULIPs decreased from Rs. 15,472 crore to Rs 10,421 crore.
In contrast, new premiums from regular linked policies was down from Rs 25204 crore to Rs. 21438 crore whereas non-linked policies grew from Rs 10,392 crore (Rs 8,746 crore).
"Despite the slowdown in the economy, life insurance industry has continued to grow as policyholders are realizing the value of insurance. We continue to be optimistic about the future of the insurance business in India and expect the industry to grow at 20%," Mr S B Mathur, secretary general of the Life Insurance Council said.
Life Insurance companies have also have set-up a total of 11,043 branches of which whopping 8,331 branches were set-up by private sector life insurance companies.
And why not, the sector witnessed a 16% growth in total premium income to Rs 1,21,392 crore during the period against Rs 1,13,048 crore in the previous period despite a 4% decline in first premium income. Total premium includes first premium income as well as renewal premiums for the period. Interestingly, renewal premiums witnessed a near 35% rise.
"Renewals are that part of a person’s wallet that is set aside for the long term. Hence, whatever comes, individuals try and make sure renewals are paid. Additionally, renewals are also directly related to policies sold in earlier years and the industry has been growing at a hectic pace in the past few years," said Mr Subashis Ghosh, senior vice president, Kotak Mahindra Old Mutual Life.
Additionally, benefits paid to policyholders including maturity as well as withdrawals stood at Rs 37,000 crore during the period against Rs 33,800 crore in the previous corresponding period.
As per data released by the Life Insurance Council, the industry body for all the life insurance companies in India, renewal premiums for regular unit-linked insurance plans (ULIPs) witnessed a phenomenal 216% growth to Rs 26,637 crore for the nine-month period ended December 2008 compared to Rs 8425 crore in the previous corresponding period.
While the figure for non-linked premium stood at Rs 52,529 crore, up from Rs. 50268 crore in the previous period.
Additionally, non-linked premiums from single premium policies doubled to Rs 9,976 crore from Rs 4,932 crore, whereas premiums from ULIPs decreased from Rs. 15,472 crore to Rs 10,421 crore.
In contrast, new premiums from regular linked policies was down from Rs 25204 crore to Rs. 21438 crore whereas non-linked policies grew from Rs 10,392 crore (Rs 8,746 crore).
"Despite the slowdown in the economy, life insurance industry has continued to grow as policyholders are realizing the value of insurance. We continue to be optimistic about the future of the insurance business in India and expect the industry to grow at 20%," Mr S B Mathur, secretary general of the Life Insurance Council said.
Life Insurance companies have also have set-up a total of 11,043 branches of which whopping 8,331 branches were set-up by private sector life insurance companies.
Source:Economictimes
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