Life insurers have clocked a 7.49% rise in first-year premium at more than ₹2.78 lakh crore for the financial year ended March 31.
According to their new business statements, released by insurance regulator IRDAI, the first-year premium, a key indicator of performance, totalled ₹2,78,277.98 crore.
Market leader Life Insurance Corporation of India (LIC) reported a 3.5% increase to ₹1,84,174.57 crore during the fiscal when most businesses and economy were impacted on account of the pandemic. The first quarter of 2020-21 particularly proved challenging for the insurers with lockdown and restrictions on movement impacting soliciting of new business.
Private life insurers posted a 16.3% increase in the first year premium to ₹94,103.42 crore. Of the 22 functional private life insurers, five reported a decline in the first year premium.
In terms of market share, LIC closed the fiscal with 66.2%, a decline from 68.7% in FY20, while private insurers increased their share to 33.8%. March performance helped push up the numbers with the life insurers reporting a 70.9% increase in the first year premium to ₹43,416.69 crore.
