Life insurance industry records 16-per cent in first three quarters of FY09

09 February 2009

Mumbai: The Indian Life Insurance Industry, contrary to overall economic slowdown, has recorded a robust growth of more than 16 per cent for the nine-month period ended 31 December 2008, collecting total premium (new business + renewals) of Rs131,400 crore, up from Rs113,000 crore during the corresponding nine months in 2007.

As per data released by the Life Insurance Council, the industry body for all the life insurance companies in India, renewal premiums for regular unit-linked insurance plans (ULIPs) witnessed phenomenal growth of 216 per cent to Rs26,600 crore for the nine-month period ended December 2008 compared to Rs8,400 crore in the same period last year. Non-linked premium stood at Rs52,500 crore, up from Rs50,200 crore last year.

The council, the industry body for all the life insurance companies in India, shares quarterly data for 21 life insurance firms including public sector Life Insurance Corporation (LIC).

It said non-linked premiums from single premium policies doubled to Rs10,000 crore from Rs4,900 crore, whereas premiums from ULIPs decreased from Rs15,400 crore to Rs10,400 crore.

New premium from regular linked policies was down from Rs25,200 crore to Rs21,400 crore whereas non-linked policies grew from Rs8,700 crore to Rs10,400 crore.

"Despite the slowdown in the economy, the life insurance industry has continued to grow as policyholders are realizing the value of insurance," said S B Mathur, secretary, General, Life Insurance Council.