LIC's first year premium decreased by 12.4% in May 2021 compared to a drop of 24.3% in May 2020, while private companies grew at 14.2% in May 2021 after witnessing a fall of 28.3% in May 2020, CARE Ratings has said in a report.
"On the other hand, LIC reported a flat growth of 0.1% for the period ended May 2021 vs. the significantly higher rate of 33.5% reported by the private companies, which resulted in the sector reporting a growth of 11% for the two months of FY22. Despite this increase over the last year, the YTD premiums have not reached the pre-pandemic levels seen in the first two months of FY20.
First Year Premium of life insurers witnessed a dip of 5.5% in May 2021 to Rs 12,977 crores to Rs 13,739 crores in May 2020 despite a low base and a national lock down," CARE Ratings has said in a report.
"The decrease in May's First Year Premium has comes after a significant rise of 44% in April. The fall can be attributed to the fall in non-single premiums for May 2021 and the second Covid wave, along with the lockdown in major states. On the other hand, the YTD numbers have reported a growth of 11% to Rs 22,715.8 crores for the two months ended May 2021 from Rs. 20,466.8 crores for the two months ended May 2020, however it has yet to cross the pre pandemic levels of Rs 28,395.9 crores reported for the two months ended May 2019," the rating agency has said.