AFTER suffering a 6% decline in first premium income (FPI) in fiscal 2008-09, the life insurance industry is back on the growth path. The first month of the current financial year (2009-10) saw a 29% growth in FPI, thanks to Life Insurance Corporation (LIC).
LIC, whose FPI dipped 10% during the previous fiscal, recorded a 69% growth during April 2009. However, private players, which witnessed a 1% growth in first premium during 2008-09, saw a 3% fall in the same month.
Data compiled by Irda showed that LIC managed to increase its marketshare by as much as 14% during April 2009. The public sector behemoth managed to corner about 59% marketshare during the period under review against 45% in the corresponding period previous fiscal. On the other hand, private insurers' marketshare slipped to 41% from 55%.
According to a senior LIC official, the rise in premium income was mainly attributed to the thrust on selling more of conventional products as well as the stock market boom in April 2009, which made unitlinked policies popular. "The stock market performed better during April 2009 than in April 2008, hence unit-linked policies sold more," said the official.
Interestingly, the single premium adjusted FPI figures for April 2009 are yet to show growth. Adjusted FPI for the life insurance segment witnessed a 14% decline while for private players, there was a 26% drop. LIC, however, managed to show a marginal 4% growth during the period.
Adjusted single premium considers just 10% of single premium policies and FPI for individual non-single policies. Going by this definition, Max New York Life managed the highest premium income among private players during April 2009, followed by SBI Life and ICICI Prudential. According to this method of calculating premiums, the private players have lost about 8% marketshare to LIC during the first month of the current fiscal. Marketshare of all private players stood at 52.6% during April 2009 against 60.9% in the previous corresponding period.
Figures show LIC managed a six-fold increase in FPI group non-single policies during April 2009 while group single premiums rose 3.6%. Individual single premium registered a 16% rise during the period.
LIC, whose FPI dipped 10% during the previous fiscal, recorded a 69% growth during April 2009. However, private players, which witnessed a 1% growth in first premium during 2008-09, saw a 3% fall in the same month.
Data compiled by Irda showed that LIC managed to increase its marketshare by as much as 14% during April 2009. The public sector behemoth managed to corner about 59% marketshare during the period under review against 45% in the corresponding period previous fiscal. On the other hand, private insurers' marketshare slipped to 41% from 55%.
According to a senior LIC official, the rise in premium income was mainly attributed to the thrust on selling more of conventional products as well as the stock market boom in April 2009, which made unitlinked policies popular. "The stock market performed better during April 2009 than in April 2008, hence unit-linked policies sold more," said the official.
Interestingly, the single premium adjusted FPI figures for April 2009 are yet to show growth. Adjusted FPI for the life insurance segment witnessed a 14% decline while for private players, there was a 26% drop. LIC, however, managed to show a marginal 4% growth during the period.
Adjusted single premium considers just 10% of single premium policies and FPI for individual non-single policies. Going by this definition, Max New York Life managed the highest premium income among private players during April 2009, followed by SBI Life and ICICI Prudential. According to this method of calculating premiums, the private players have lost about 8% marketshare to LIC during the first month of the current fiscal. Marketshare of all private players stood at 52.6% during April 2009 against 60.9% in the previous corresponding period.
Figures show LIC managed a six-fold increase in FPI group non-single policies during April 2009 while group single premiums rose 3.6%. Individual single premium registered a 16% rise during the period.
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