Protection policies drive new premium

This year will be moderate for ULIP inflows though focus on the protection business will continue to drive value of new business for large insurers

Private Life Insurance companies reported 9% growth in individual premium in June 2018, somewhat better than 4% during May 2018. We expect FY19 to be a moderate year for ULIP inflows though the focus on the protection business will continue to drive the value of new business (VNB) for large players; in  that sense, monthly annual premium equivalent (APE) data is incrementally less relevant.

BETTER GROWTH

Private sector APE was up 12% yoy in June 2018, leading to 6% yoy growth for 1QFY19. With 3% yoy growth in LIC for the month (21% in May 2018, 7% in 1QFY18), the overall industry growth was 8% yoy in June (6% in 1QFY19). Excluding two key players.

The article was issued in THE FINANCIAL EXPRESS - Friday 20 June 2019