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Indian Life Insurance industry expected to grow by 15% for FY2010

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Indian Life Insurance industry expected to grow by 15% for FY2010

Chennai, November 20, 2009: The Indian Life Insurance Industry is expected to grow by 15% during the current financial year, according to Mr. S.B. Mathur, Secretary General, Life Insurance Council. Total premium income (new business + renewal) for the industry is expected to touch Rs.2,55,000 cr. for the financial year ending March 2010 compared to Rs. 2,21,688 for the corresponding period previous year.

The industry has recorded a robust growth of more than 18% for the six months period ended September 30, 2009, collecting total premium of Rs.1,01,976 as against Rs.86,571 cr. during the corresponding period last year.

As per data released by the Life Insurance Council, the industry body for all the life insurance companies in India, total renewal premiums for regular Unit Linked Insurance Plans (ULIPs) witnessed a growth of 40% on a year-on-year basis to Rs.25,950 cr. as compared to Rs. 18,506 cr. in the same period last year. While non-linked renewal premium stood at Rs. 37,041 cr. up from Rs 33,536 cr. last year.

Total non-linked premiums has increased by 24% to Rs.57,314 cr., up from Rs.46,160 from last year.

New business premium increased by 13% to Rs.38,985 cr. from Rs.34,529 cr. for the previous corresponding year.

"Despite the slowdown in the economy, life insurance industry has continued to grow as policyholders are realizing the value of insurance.

We continue to be optimistic about the future of the insurance business in India and expect the industry to grow approximately at 15%. We stand committed to achieve a target of Rs. 2,55,000 cr. total premium for FY10," Mr. S.B. Mathur, Secretary General, Life Insurance Council said while disclosing the cumulative data for the six month period ended September 2009. The Life Insurance Council, the industry body for all the life insurance companies in India, shares quarterly data for 22 Life insurance firms including public sector Life Insurance Corporation (LIC), as a part of making the process of sharing information more transparent and efficient.

Commission expenses in the industry have reduced by approximately 76 bps as compared to March 2009.

Total benefit paid to policyholders was Rs.28,373 cr. an increase of 23% as compared to Rs.23,070 cr. last year of which death benefit amounted to Rs. 3,868 cr

Private life companies paid total benefits of Rs.5,556 cr. an increase of 99% from Rs.2,798 cr. last year.

Life Insurance companies have more than 11,800 branches of which whopping 8,670 branches were set-up by private sector life insurance companies.

The capital deployed at Rs. 26,526 cr. by life insurance companies has seen almost 25% jump from Rs. 21,248 cr. last year.

About Life Insurance Council - Life Insurance Council is a statutory body under the Insurance Act 1938 and the Council is the industry association representing 22 life insurance companies operating in India. Since nationalization of life insurance industry in 1956 there was no felt role for the Council. On the opening up of the sector the Council was revived through an order from the IRDA.

Council's mission is to play a significant and complementary role in transforming India's life insurance industry into a vibrant, trustworthy and strong sector contributing to the overall development of the economy.

Life Insurance Council's web site can be accessed at www.lifeinscouncil.org

For further information, please contact:
Sampark Public Relations Pvt. Ltd.
Murugan.G - 98412 78904