Insurers see sharp slump in new business in Q1

First year life premium declines 18.6%

The first year premium or the new business of life insurance companies for the quarter ended June was 18.6% lower compared with the year earlier period.

In the face of a pandemic that has impacted people, businesses and the economy like never before, the 24 life insurers mobilised a first year premium totalling ₹49,335.44 crore. In the corresponding quarter of 2019-20, they had generated ₹60,637.22 crore new business, according to data released by the Insurance Regulatory and Development Authority of India (IRDAI).

For Life Insurance Corporation, the leader and the lone state-owned entity among them, the decline was 18.5% at ₹36,530.02 crore (₹44,794.78 crore). The first-year premium for private insurers was lower by 19.2% at ₹12,805.42 crore (₹15,842.44 crore).

Beginning March, the first-year premium of life insurers had been on a decline. In March, the year-on-year decline was 32.2%, while it was 32.6% in April. May was better with the decline at 25.4%. In June, the gap was bridged further with insurers registering a first-year premium of ₹28,868.68 crore, or 10.5% lower than the ₹32,241.33 of June 2019.

Non-life down 4.24%

IRDAI’s data for non-life insurers showed that the gross direct premium underwritten by the companies for the quarter ended June totalled ₹39,329.62 crore, or 4.24%, lower compared to the ₹41,072.14 registered in the same quarter of 2019-20. In June, the performance was better with the companies’ gross direct premium underwritten at ₹13,961.25 crore (₹12,947.89 crore).

Standalone health insurers registered a 15.8% growth at ₹3,232.10 crore (₹2,792.08 crore) in the gross direct premium underwritten during the quarter.