According to business specialists, the sharp fall in premiums of LIC dragged the efficiency of the all round business. Since July, new enterprise premiums had been in constructive, with October witnessing a development of 31.87%.
New enterprise premiums for the life insurance coverage business declined in November, right after witnessing a constructive development amongst July and October. Data from the Insurance Regulatory and Development Authority of India (Irdai) show that new enterprise premiums for life insurance coverage fell 26.93% year-on-year to Rs 19,159.30 crore in November.
Life Insurance Corporation of India (LIC) fared badly compared to private insurers for the duration of the month. Irdai information showed that new enterprise premium for LIC fell 35.58% to Rs 12,092.62 crore in November compared to final year. Private insurers saw a decline of 5.15% in new enterprise premium, which stood at Rs 7,066.64 crore.
According to business specialists, the sharp fall in premiums of LIC dragged the efficiency of the all round business. Since July, new enterprise premiums had been in constructive, with October witnessing a development of 31.87%.
According to Kotak Institutional Equities, person annualised premium equivalent (APE) for the private sector declined 7% (YoY) in November, even though group APE was down 12% YoY, translating to a 7% YoY decline in the all round APE.
APE is the sum of annualised 1st-year premiums on common premium policies and 10% of single premiums, written by insurance coverage organizations for the duration of any period from each retail and group policyholders. “Notably, individual APE growth turned positive in September 2020 (up 4% YoY) as the lockdown eased, and was up 14% YoY in October 2020, but declined YoY in November. This may be due to a high base effect; November 2019 was a strong month for the private industry with 27% growth as compared to 3-4% growth in September and October 2019,” stated the report from Kotak Institutional Equities.
All the categories in new enterprise premiums saw damaging development in November, show information from Irdai. Categories like person single premium and person non-single premium saw damaging new enterprise premium at 11.04% and 33.73%, respectively. Even all the categories in the group insurance coverage segment witnessed a fall in its new enterprise premium in November.