Signs of good times: Life insurers see 32% growth in new premium in October; non-life insurers see green shoots

With the unlock phase being implemented across the country amidst the coronavirus pandemic, the phase of de-growth in life and general insurance sector is over.

Data from Insurance Regulatory and Development Authority of India (IRDAI) showed that life insurers had a 31.9 percent year-on-year (YoY) growth in new premiums at Rs 22,776 crore in October 2020.

Here, Life Insurance Corporation of India (LIC) beat the industry by posting YoY growth of 36.1 percent at Rs 15,548 crore in October. Private insurers, on the other hand, posted YoY growth of 23.6 percent at Rs 7,228 crore.

Among the listed players, HDFC Life Insurance saw a 56 percent YoY growth in new premium at Rs 1,658.8 crore in October. ICICI Prudential Life Insurance had a 6 percent YoY growth in new premium at Rs 990.2 crore in October, while SBI Life posted 11.8 percent YoY growth in first-year premium at Rs 1,591 crore.

Overall, for the April 1 to October 31 period (FY21), life insurers posted a 3.1 percent YoY growth in new premium at Rs 1.47 lakh crore, compared to the year-ago period.

General insurers start seeing green shoots

While the non-life insurers posted flat growth in October, segments like health insurance continued to lead the segment-wise growth for companies.

The non-life industry saw gross premiums of Rs 15,855.1 crore for October, down 0.4 percent YoY. However, health insurers led the pack with 32.3 percent YoY growth in gross premium collection in October.

Among the listed players, ICICI Lombard posted 10.2 percent YoY growth in gross premium for October at Rs 1,502.84 crore.

The largest non-life insurer New India Assurance posted a 20.2 percent drop in gross premium to Rs 2,002.36 crore in October.