For Quick Alerts
For Daily Alerts

Life Insurance First Year Monthly Premiums: Overall October Numbers Stumble


First Year Premium of life insurers fell by 5.1% in October 2021 compared to an increase of 22.2% in September 2021 and reached Rs 21,606 crores from Rs. 22,776 crores in October 2020, CARE Ratings has said.


"The fall in monthly numbers can be attributed to a drop in individual single premiums in the public sector for October 2021. For YTD October FY22, the life insurance sector reported a growth rate of 4.1% (vs 5.8% in H1FY22) compared an increase of 3.1% for YTD October FY21. Due to the Covid-19 pandemic lockdown and resultant impact, premiums were affected in FY21 and resultant different growth after the same, base effect may also be possible in monthly FY22 numbers. Hence, if we look at the two-year CAGR performance, private players have continued to show a strong growth momentum," the ratings agency has noted.

LIC's first year premium showed a degrowth

LIC's first year premium showed a degrowth of 13.2% in October 2021 compared to a stronger growth of 36.1% in October 2020, while private companies grew by 12.1% in October 2021 after witnessing a much higher growth rate of 23.6% in October 2020.


"For YTD October FY22, LIC reported a drop of 4.8% vs. a significantly higher growth of 25.1% reported by the private companies. Last October, a few new plans were reintroduced, which had led to a build-up of individual single premiums, which has normalised in October 2021. If we compare October 2021 versus October 2019, the individual single premiums have continued to show growth," CARE Ratings has said.

LIC continues to maintain its dominant share in the first-year premium for YTD October FY22 (LIC share of 64.2% vs. 35.8% share of private companies). Private sector has continued to gain market share, given that it has been growing at a faster pace compared to Life Insurance Corporation.

Life Insurance First Year Monthly Premiums: Overall October Numbers Stumble

Read more about: lic life insurance
Story first published: Wednesday, November 10, 2021, 8:45 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X