Page 20 - Insurance Times February 2024

charges paid to banks for selling LIC settlement rate higher than peers
insurance products," the executive said
LIC had a claim settlement ratio of 98.5% as of March 31, 2023, according
on condition of anonymity, adding that
to data released by the IRDAI in its annual report. The ratio showed a slight
the government also wants proper
disclosure while issuing policies on decrease from the 98.7% reported a year earlier. In contrast, private sector
counterparts had a claim settlement ratio of about 98% - slightly down from
commissions and other charges paid to
banks. previous year's 98.1%.
For group life insurance business in fiscal 2022-23, out of a total of 12.5 lakh
Rising trend: 34% of life claims, life insurance companies settled 12.4 lakh - achieving a settlement
ratio of 99.4%. Notably, LIC settled almost 99% of group claims, while private
insurance policies issued life insurers surpassed with a ratio of 99.4%. Surrenders/withdrawals
to women in FY23 increased by 25.6%, reaching almost 2 lakh crore during the same period,
Of the total 28.4 million policies sold by with LIC accounting for 56.3%. The overall benefits paid by the life insurance
the insurers during 2022-23, the share industry in 2022-23 amounted to about Rs 5 lakh crore, constituting 64% of
of women's life insured by private the net premium.
companies rose to 30.13 per cent as Regarding individual life insurance business for the year 2022-23, of the total
compared to 29 per cent in 2021-22. 10.8 lakh death claims, life insurance companies settled 10.6 lakh -
On the other hand, the share of disbursing a total benefit amount of Rs 28,611 crore. Notably, 10,822 claims
women insured by Life Insurance were repudiated, amounting to Rs 1,026 crore, while 4,340 claims were
Corporation of India (LIC) dropped to rejected, totalling Rs 24 crore. As of the end of the year, 833 claims
35.81 per cent from 36 per cent in the amounting to Rs 350 crore were pending.
year-ago period. During 2022-23, life insurers issued 284.7 lakh new policies under individual
According to the Insurance Regulatory business, of which LIC issued 204.3 lakh policies (71.8%), and private life
and Development Authority's annual insurers issued 80.4 lakh policies (28.3%). Private sector insurers registered
report 2023, of the total policies sold, 8.8% growth, while LIC registered 5.9% decline, and the industry registered
the number of policies issued to a decline of 2.2% in number of new policies issued against the year before.
women was around 9.73 million, which
is 34.20 per cent of the total.
data, which hinders its ability to the inherently long-term nature of
conduct comprehensive assessments their liabilities. The central
Life insurers must be and appraisals. government introduced the 50-year
allowed to invest in more "For insurance companies, so far as tenor security in its borrowing calendar
investment is concerned, it is highly for the second half of the current
asset classes regulated. So, new asset class should financial year, fulfilling a long-standing
Asserting that investment regulations also be allowed, like your sovereign demand by life insurance companies,
for insurers are highly regulated, gold bond, equity derivative, all these particularly the LIC. The government
Chairman of Life Insurance things should also be allowed to plans to raise a total of ~30,000 crore
Corporation of India (LIC) Siddhartha insurance companies so that there will through these securities.
Mohanty said that insurance be more liquidity," he said.
companies should be permitted to "I am the largest participant in the With pandemic deaths
invest in new asset classes like debt market (but) I have no access (to
sovereign gold bonds and equity CRILC). My assessment and appraisals down, life insurance
derivatives to enhance liquidity. (are) on the basis of whatever public claims decline 31.83%
Speaking at the 10th SBI Banking and domain reports are there, financials, I With COVID deaths declining across
Economic Conclave, he said insurers do it on that. So, I would be happy if India, life insurers have reported a
we are given access to CRILC," he said.
should have access to Central 31.8 per cent fall in death claims paid
Repository of Information on Large Mohanty also said that there is a need out at Rs 41,457 crore during the
Credits (CRILC) data. He said despite for more long-term securities to align fiscal ended March 2023 compared
being a major participant in the debt with insurance companies' asset- with Rs 60,821 crore in the previous
market, LIC has no access to CRILC liability management strategy, given year.

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