As per IRDA, the life insurance industry registered a 48 per cent fall in new business premium in September with a total new business premium of Rs 9,612.74 crore as against Rs 18,500.53 crore in August 2010. It is steepest for Life Insurance Corporation of India as it earned Rs 6,606.64 crore in September, compared to Rs 14,653.83 crore in August.
It’s been over two months since the new IRDA norms for unit linked insurance plans (ULIPs) came into effect. The guidelines that have capped the overall charges and also imposed a minimum prescribed return may offer a much fairer deal to investors, but don’t seem to have set the cash registers ring for companies. In fact, data collected by the Life Insurance Council revealed that in the first six months of the fiscal between April and September, the renewal premium for ULIPs has remained flat and chances of sales picking up later in the year seem a bit dim. “The next six months are crucial. It seems that the industry growth this year would be marginal at 5 per cent or so,” SB Mathur, secretary general, Life Insurance Council said.