Interest for Life Insurance Back

Growth in the life insurance industry is back, this becomes evident as life insurance industry has garnered a premium of Rs 10,710 crores in October 2015, a rise of 75% over the September 2015.

Country’s largest insurer, Life Insurance Corporation of India (LIC) witnessed a growth of 19% in premium collection during April-October 2015. On the other hand, private sector life insurers witnessed 27% growth in premium collection during April-October 2015 over the same period previous fiscal.

Premium income collection had shrunk 3.34% in the same period last year. Now, with Indian economy expected to grow 7.4-7.5% this fiscal, financial savings including insurance have started attracting investor’s interest.

In India, the overall economic sentiment has improved resulting in a rise in financial savings and insurance being a part of it has also has seen good traction of growth almost after eight-nine quarters of de-growth.

Private life insurance Company like ICICI Prudential Life, Bajaj Allianz Life and SBI Life has registered growth in individual premium collections. This growth is driven on the back of rise in sales of Unit-Linked Insurance Plans (ULIPs).

State owned LIC saw 55% growth in group single premium collection. However, its individual single premium collection declined 39% and individual non-single premium collection fell 2%.

However, number of policies sold dipped for ICICI Prudential Life, Max Life and Bajaj Allianz Life.

Rationalization and transparent pricing along with the smart interplay of digital and technology push has helped insurers to market the products and its delivery better. It has not only resulted in reduced costs but also better user experience and regaining of customer trust. The focus on persistency, instead of merely going after new premium business, has contributed to the growth.

Source:https://www.policymantra.com/blog/interest-for-life-insurance-back/