After a good performance in the last few months, the premium collected by private life insurance companies decreased by 9% year-on-year in September 2012. This fall in collected premium had a very strong impact on the performance of private life insurers during the first half of the current financial year. As a result of this, there is a cumulative fall in the Total Premium Collected by the Private Life Insurance Companies from April to September 2012 by 2%, i.e. to Rs 7095 crores.
The overall Collected Premium Data by private Insurance Companies is lower by 2% than the previous years whereas the ticket size of each policy has increased in that period.
The Life Insurance Corporation (LIC) of India is a public-sector Life Insurance Company with Government of India as its primary stake holder. The LIC of India still holds the majority of the Indian Insurance Industry. The cumulative fall in the Collected Premium of all the Private Life Insurance Companies has been somewhat compensated by a robust year-on-year growth of 24% in premium collections by LIC amounting to Rs 15,532.7 crores.
The expense of private life insurers has gone up significantly. Large private insurance companies such as HDFC Standard Life and ICICI Prudential Life Insurance however recorded only a marginal decrease in premium collections. The others have been significantly affected.
