Life Insurance industry, India’s one of the fastest growing sectors, combines 23 licensed insurers. With more than 70% of the whole revenue of the business, the Life Insurance Corporation of India (LIC) leads the pack, while the 22 private players occupy the rest of the business.
Until the Insurance Regulatory and Development Authority Act was passed in 1999, LIC was the sole player in the Indian life insurance sector. The entry of private insurers and the cap on commissions has increased the competition and diversification of the products.
For the period 2000-01 to 2007-08, the Annual Growth Rate (CAGR) of the life insurance industry has been rapid at 26%.
During 2008-09, life insurance industry has recorded a 10.15% growth in total premium income to Rs.201351.41 crore while the growth during 2007-08 was 29.0% at Rs 221791.26.
The total issuance of new policies rose marginally by 0.1% to 5.09 crore in 2008-09, compared to 10.23% growth recorded in last fiscal.
But the biggest thumps up, the insurance sector received during April-December 2009, when the cumulative new premium collection surged 29.2% to Rs 67557.61 crore. Previous year, the collection for the same time period was merely of Rs 52298.86 crore.
Interestingly, the growth has surpassed the projection made by Life Insurance Council of 15%
Yes, the insurance penetration in our country is still in its kiddy days but it’s growing up. Tax benefits have been a significant driver of insurance sales as almost 20% of annual sales happens in March. And with almost 40% of the business comes in the last quarter of the fiscal year.
Now, if you want to understand the nuances of different types of policies and its price, feel free to seek the help of InsuranceMall to select the right products based on your need.
InsuranceMall is the leading and first online insurance broker in India. With the motto to make our customer delighted and proud about their decisions, we’re always there to help them with best possible policy.
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