Life insurers have reported a 5.55% decline in first-year premium at ₹12,976.99 crore for May, a performance dominated by market leader LIC’s mobilisation being 12.38% lower, and coming on the back of lockdown restrictions across the country.
It effectively shadowed the show of private players, who together posted a 14.23% increase in the premium at ₹4,029.35 crore as against ₹3,527.48 crore in the year earlier period.
The first-year premium of LIC, which accounts for more than 60% of the market share, stood at ₹8,947.64 crore (₹10,211.53 crore), according to new business statement of life insurers released by IRDAI.
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A research report by Emkay Global said the weak year-on-year growth in May came even on a low base from last year as the second wave of COVID-19 and consequent lockdowns impacted sales of insurance companies across the country. “We expect the trend to witness an improvement from June due to gradual reopening of major cities across States with the base-effect advantage of last year remaining intact,” the report said.