Kathmandu: The first premium income of an Indian life insurance company has increased by about 11 percent in the first two months of current FY.
By 31 May 2021, they have earned a total of Rs 363.45 billion in premiums. According to the data released by the Insurance Regulatory and Development Authority(IRDA), the first premium earned in the fiscal year 2020-21 was Rs 327.46 billion as of May 2020.
Out of the total market share, state-owned LIC India has a market share of 60.77 percent. LIC has earned the first premium of Rs. 220.87 billion during the period. As of May last year, it had earned the first premium of Rs 220.87 billion. Interestingly, despite the overall market growth rate of 11 percent, LIC’s growth rate is well below 1 percent.
Although the private sector life insurance companies have made full use of the information technology introduced in the life insurance services, they have been able to grow their business, but the growth rate has been weak due to the sluggishness of NIC India, according to Indian media.
And LIC’s monthly first premium income declined by 12.38 percent in May of the current FY compared to the same month last year.
SBI Life, the second largest insurer in the Indian life insurance market, has a market share of 6.94 per cent in terms of first premium income. The first premium income till May 2021 is Rs. 25.22 billion.
SBI’s first premium income increased by 1.35 percent to Rs.25.89 billion in the corresponding period of the previous year. In May alone, SBI’s revenue increased by 1.56 percent to Rs. 10.37 billion.
In India, the fiscal year begins in April and ends in March.