Page 30 - The Insurance Times January 2025

high in case of private life insurance companies and the 4. Insurance Agents
growth is 16.34% than the public life insurance companies An insurance agent is an individual appointed by an insurer
i.e. the Life Insurance Corporation of India (10.90%) during for the purpose of soliciting or procuring insurance business
2022-23 against the previous financial year 2021-22. The including business relating to continuance, renewal or re-
total premium underwritten by the Life Insurance Corpora-
vival of policies of insurance. No individual shall act as an
tion of India was Rs 4, 74,668.14 crore during 2022-23.
insurance agent for more than one life insurer, or general
insurer and one health insurer and one each of the special-
3. New individual life insurance policies ized insurers.

issued
From the above table it is observed that the number of in-
The growth of life insurance industry depends on number of
dividual agents as at March 31, 2023 was 26.28 lakhs as
policies particularly number of new individual policies issued
against 24.43 lakhs as at March 31, 2022. The life insurance
by life insurance companies.
industry showed a growth of 7.60% in number of agents over
the previous year. As at March 31.2023, the number of
Table: 2 New Individual Policies Issued (in
agents with the public sector stood at 13.47 lakhs and the
lakh) corresponding number for private sector insurers was 12.80
lakhs. This is not a favorable position for the public sector
Year New Policies New Policies
issued by issued by Pvt. Total life insurance company.
LICI Life Ins. Co.
5. Commission expenses ratio
2020-2021 209.75 71.52 281.27
At present twenty three life insurance companies are op-
2021-2022 217.19 73.94 291.13 erating in India, of which twenty two life companies are
(3.54%) (3.38%) (3.51%)
private and one is public sector. Out of the twenty four life
2022-2023 204.24 80.42 284.7 insurance companies seventeen companies reported prof-
(-5.96%) (8.77%) (-2.77%) its during 2022-2023.
Source: IRDA Annual Reports 2020-2021, 2021-2022 and Table: 4 Commission Expenses Ratio
2022-2323
Note: Figures in bracket indicates the growth in per cent Items 2020-2021 2021-2022 2022-2023
over the previous financial year. Profit after Rs 8,660 Rs 7,751 Rs.42,788
tax crore crore crore
During 2022-23, the life insurance industry registered a
declining trend in growth of (-) 2.77% in the number of poli- Commission 5.25% 5.18% 5.41%
cies issued against the previous financial year 2021-22. Al- expenses ratio
though the private life insurance companies registered a Source: IRDA Annual Reports 2020-21, 2021-22 and 2022-
growth of 8.77% in the number of policies issued against the 23
previous financial year but the public life insurance com-
pany registered a declining trend in growth of (-)5.96% in It is observed that profit after tax was Rs 7,751 crore dur-
the number of policies issued against the previous financial ing 2021-22 whereas profit after tax was Rs42,788 crore
year. during 2022-23. Profits of life insurance industry grew by

Table: 3 Insurance Agents Associated with Life Insurers

Insurer No. of agents as No. of agents No. of agents as No. of agents as
on 31.03.2022 appointed during terminated on 31.03.2023
2022-23 during 2022-23
Private Sector 11,16,177 4,93,473 3,28,767 12,80.883
Public Sector 13,26,432 3,92,337 3,71,444 13,47,325
Total 24,42,609 8,85,810 7,00,211 26,28,208
Source: IRDA Annual Reports 2020-21, 2021-22 and 2022-23

The Insurance Times January 2025 27