The life insurance sector might see the year end on a positive note, with the largest entity, Life Insurance Corporation of India (LIC), optimistic on growth. LIC has seen 40 per cent sequential growth in new premiums during March.
January-March is the peak season for life insurance companies when over half of their new premiums are collected, as customers buy insurance to save taxes.
LIC Chairman S K Roy recently said, “Since our base is high, 40 per cent growth is substantial. We aim for 15 per cent growth in new premiums in the next financial year.” He said despite 2014-15 being a challenging year, LIC would show good growth.
New premiums for the sector declined 12.9 per cent in April-December 2014 to Rs 73,777 crore from Rs 84,725 crore in the corresponding period of the previous year, as LIC reported a 21.4 per cent fall to Rs 51,667 crore, from Rs 65,774 crore.
Private life insurers posted 16.6 per cent growth, year on year, in new premiums in April-December 2014 to Rs 22,110 crore on strong growth in unit-linked insurance sales.
Though LIC offered fewer policies under a new regulatory regime, executives said premiums had picked up.
In 2014, LIC launched three policies, Jeevan Shagun, Jeevan Rakshak and Varishta Pension Bima Yojana that were well received. It is also planning to launch a unit-linked plan soon.