The life insurance sector returned to positive growth in their first-year premium collection as business picked up after the reopening of the economy which has been severely impacted by the Covid-19 pandemic. The sector reported an increase of 3.13 per cent in first-year premium to Rs 147,503.7 crore till October 2020 of the current fiscal from Rs 143,030 crore during the same period of last year, as per figures released by the regulator, Insurance Regulatory and Development Authority of India (Irdai).
In April this year, premium collection had slumped by over 32 per cent and the first quarter performance turned weak due to Covid pandemic and lockdown imposed across the country.
Life Insurance Corporation, the largest player in the segment, has reported a 2.13 per cent rise in first year premium to Rs 103,566 crore as of October 2020. SBI Life registered a 14.64 per cent in premium collection at Rs 10,590 crore till October.
“It’s interesting to see the needle move on premium numbers, where growth is being seen on a month-on-month basis. This has been a result of the increased term and guarantee products, and … with market sentiment showing some positivity, ULIPs will see a come-back as well. Though we need to see how the next few months play out to ensure sustained growth, said Tarun Chugh, MD and CEO, Bajaj Allianz Life.
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