Page 15 - The Insurance Times October 2021

Private Life Insurance News

HDFC Life to cap policies Life Insurers' premiums 18,960.77 crore in August 2021
compared to Rs 19,714.21 crore in the
channels' share in sales grow 3% after shrinking in same period last year and Rs 17,114.
HDFC Life Insurance has decided to July 21 32 crore in August 2019.
keep a cap on the share of products After witnessing fall in new business
and distribution channels. According premium (NBP) in July, life insurers are Insurance as percentage of
to the Vibha Padalkar, CEO, Exide Life back in the green again, witnessing a GDP in India spikes
acquisition is aimed at increasing the marginal year-on-year (YoY) growth of
share of agents and reducing 3 per cent in NBP in August, owing to The pandemic has increased the
potential for health and life insurance
dependence on HDFC Bank's a strong performance by the private
distribution. insurers. in India. According to Swiss Re's Sigma
report on World Insurance, insurance
Padalkar said that HDFC Life has In July, life insurers reported an 11 per contribution to GDP has risen to 4.2%
managed to survive volatility in cent YoY drop in NBP while in June they in FY21 from 3.76% in FY20. Insurance
macroeconomic conditions and managed to report a 7.53 per cent penetration (premium as a percentage
increase in NBP, following a dip in May
regulatory changes better because of of GDP) for both life and non-life
due to the second wave of the
portfolio diversification. As a result, insurance has seen an increase during
pandemic.
the company does not want to the pandemic.
increase the share of unit-linked The life insurance industry reported While life penetration has increased
insurance plans (ULIPs) to beyond the NBP to the tune of Rs 27,820.74 crore from 2.8% to 3.2%, the non-life play
in August, up 2.88 per cent YoY, despite
present level of 25% despite surging has increased to 1% from 0.94% last
a 3.8 per cent YoY contraction
markets. Even when it comes to the year. In non-life, India's ranking has
reported by state insurance behemoth
company's best-selling investment improved by one place despite
-- Life Insurance Corporation (LIC) -- in
product Sanchay Plus, it has decided to premium shrinking in dollar terms. This
NBP as private insurers posted 21 per
cap the extent of sales. is because Brazil, which was in 13th
cent YoY growth in NBP. NBP is the place, slipped sharply as its business
"Bancassurance used to be around premium acquired from new policies in shrunk 20% in dollar terms.
75% of our business at one time. It's a particular year.
According to the survey, many
hovering around 50% of the business. Private insurers, 23, earned Rs respondents feel underinsured, despite
I am not saying that it will not grow. I 8,859.97 crore in NBP in August 2021 most owning medical and life
am saying that other channels should compared to Rs 7,325.58 crore in insurance. Between 30% and 40% of
grow faster purely from a August 2020, and Rs 6,440.65 crore in the respondents purchased additional
diversification point of view," said August 2019. On the other hand, LIC life and health insurance during the
Padalkar. earned NBP to the tune of Rs crisis, and 25-50% still intend to buy

The Insurance Times, October 2021 15