Insurance policies

The total number of life insurance policies sold in June 2022 increased by 32%, according to data from Irdai

With Covid taking a heavy toll, the importance of life insurance suddenly came to the fore. The industry expected the numbers to rise after this difficult phase. Figures from the Insurance Regulatory and Development Authority’s latest trade statement released recently show that the industry may be moving towards this.

According to data from Irdai, the number of life insurance policies sold and the total amount of premiums collected registered an increase year-on-year (year-on-year) in June 2022, compared to the same month of the previous year.

Although the total amount of premiums collected (from private and public insurers) recorded a moderate growth of around 4% year-on-year, the total number of policies sold increased by more than 32%. However, if you look at the number for private insurers alone, premium collection was higher at around 29%, but the number of policies sold was well below the total number at around 12%.

Premiums received

The total premium for all insurance players increased by 4.15% year-on-year from Rs 30,009 crore in June 2021 to Rs 31,254 crore in June 2022, according to data from Irdai. The modest growth is explained by a difficult macroeconomic environment.

Interestingly, for Life Insurance Corporation of India, the only public sector insurer in India, the figure fell from Rs 21,796 crore to Rs 20,643 crore, a decrease of 5.29%. LIC controls 62.42 percent market share in the sector. According to experts, the decline in PFRs in June 2022 could be attributed to the high base, as they saw record insurance sales during the pandemic.

Looking at the breakdown of total premium collection, individual single premiums increased by approximately 12 percent. In contrast, the non-single individual premium increased by about 22 percent. The highest growth, however, was recorded by the group non-individual premium segment of more than 59 percent.

Number of fonts and programs sold

The total number of policies and plans sold for all insurance companies increased by 32.78%, from 1,606,343 in June 2021 to 2,132,823 in June 2022.

LIC recorded a huge growth of more than 43%.

The LIC alone, however, saw huge growth of over 43%, from 1,066,534 in June 2021 to 1,527,002 in June 2022.

If we look at the breakdown of the total number of policies and plans sold, for individual single premium plans the number of policies and plans sold increased by 20.32% and for individual non-single premium plans the number increased by 33.46%. Within this segment, single premium group policies sold showed the strongest growth of over 180%.

Number of lives covered by group plans

The total number of lives covered by group plans increased by 101.3%, from 99,33,432 in June 2021 to 19,99,5534 in June 2022. For the group single premium category of this segment, the number increased by 267.83. percent of 32,29,918 in June 2021 from 11,88,0523 in June 2021.

Sum insured

The total sum insured for all insurance players increased by 17.99% from Rs 4,49,878 crore in June 2021 to Rs 5,30,807.64 crore in June 2022. For single premium individual plans, the sum total insured decreased by 0.18 per cent. Similarly, for individual non-single premium plans, the sum insured increased by 9.11%.