INSURANCE
New business premium of life insurers contracts 25.39% in May: IRDAI
Jun-10-2020

The Insurance Regulatory and Development Authority of India (IRDAI) in its latest report has stated that new business premium of life insurance companies recorded negative growth, For the second consecutive month in FY21, due to the coronavirus outbreak. New business premium of life insurers contracted 25.39% to Rs 13,739 crore in May 2020 from Rs 18,414 crore in the same period a year ago. In the first two months of FY21, life insurers saw their new business premium fall almost 30% to Rs 20,466.76 crore compared to Rs 28,395.90 crore in FY20.

As per the report, private insurers as well as Life Insurance Corporation of India (LIC) saw a decrease in premium collection. LIC saw a 24.3% Y-o-Y drop in premium to Rs 10,211.53 crore in May 2020, while private insurers saw a 28.3% decrease to Rs 3,527.48 crore. The only life insurers to see growth in new premiums in May 2020 were Aviva Life, Canara HSBC OBC Life and Tata AIA Life.

For FY21, data from IRDAI showed that the premium collection for the April-May period dropped 28% Y-o-Y to Rs 20,466.76 crore. LIC saw a 26.5% Y-o-Y decrease in new premiums to Rs 13,793.18 crore in the April 1-May 31 period. Private insurers saw a 30.7% dip in premiums to Rs 6,673.58 crore. Among the private insurers, HDFC Life posted a 50.2% Y-o-Y decrease in new premium for the April 1-May 31 period at Rs 1,306.50 crore. ICICI Prudential Life Insurance saw a 29.6% drop in new premiums to Rs 934.92 crore, while SBI Life saw a 15.5 percent decrease to Rs 1,555.91 crore.

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