Page 15 - Insurance Times September 2021

month-on-month basis, LIC's NBP borrower as the loans sanctioned mutual funds as introduced by SEBI,"
contracted 44.8 per cent. The dip in under the scheme do not have an in- Parekh said.
LIC's NBP was on account of a steep built insurance provision, the chamber The impact of the second wave of the
fall in individual single premium and said in a statement. pandemic has been milder and has
group single and non-single premium. Addition of insurance component will been largely restricted to the first
NBP is the premium acquired from ensure that in all circumstances, the quarter of the fiscal, he said.
new policies in a particular year. intended benefit of the scheme of While the second wave impacted life
'Housing for All' is fulfilled, and the
When compared to the pre-pandemic families are able to retain their home, insurance companies, it is expected
period (July 2019), the NBP of the life it said. that business will pick up in the second
insurance industry witnessed a drop of quarter with the easing of the
5 per cent, with LIC NBP declining "There is a need for a relaunch of the lockdown restrictions.
21.42 per cent and private insurers' PMAY scheme with an in-built credit- Noting that the pandemic has
NBP posting a stellar growth of 35 per linked insurance or a mandatory life increased the awareness of people,
cent. insurance for all borrowers under the including millennials to life insurance,
PMAY scheme to ensure that the intent
On a year-to-date basis, the life of providing 'Housing for All' does not Parekh said the industry has moved to
insurance industry saw a marginal take a hit due to death or disability of a hybrid or phygital model for offering
1.16-per cent YoY growth in NBP to Rs the primary borrower. The family contactless services.
73,159.98 crore. While LIC's NBP till
should inherit a home - not a loan," CII
July totalled Rs 47,631.62 crore, down ICICI Pru Life reports huge
Director-General Chandrajit Banerjee
8-per cent YoY, private insurers saw said.
their NBP rise 24-per cent YoY to Rs net loss
25,528.26 crore. Life insurance firms ICICI Prudential Life Insurance
Company reported a net loss of Rs
In the first quarter of 2021-22 (FY22), responsible for expense 185.73 crore for June quarter 2021-22.
the premium collection of the life
insurance industry was up almost 7 per limit The company had posted a net profit
cent to Rs 52,725.26-crore YoY, aided Life insurance companies should be of Rs 287.59 crore in the year-ago
by a stellar 33.73-per cent growth accountable for only one parameter, period. In the previous quarter
registered by private insurers. which is the expense management (January-March 2021), the insurer
However, LIC's NBP in Q1FY22 declined limit, HDFC Life Insurance Chairman reported a profit of Rs 63.78 crore.
2.5-per cent YoY to Rs 35,600.68 Deepak Parekh has said. The Total income was down at Rs
crore. companies should also be permitted to 16,724.05 crore in the quarter under
distribute health indemnity and review as against Rs 19,057.42 crore
CII seeks life cover for National Pension Scheme, he added. in the year-ago period, ICICI Prudential
borrowers under PMAY "Across the world, health indemnity said in a regulatory filing.
and pension are part of life insurance Of this, the net premium income was
CII has sought mandatory life ...Allowing distribution of NPS and
insurance cover for all borrowers health could help improve insurance Rs 6,601.85 crore as against Rs
under the Pradhan Mantri Awas reach across the country," Parekh said 5,551.07 crore.
Yojana (PMAY). This, the industry body in his address to the shareholders at The company said it had COVID-19
said, will ensure that the intent of the annual general meeting of HDFC claims of Rs 500 crore (net of
providing 'Housing for All' is not hit Life Insurance. reinsurance) for June quarter 2021-22.
because of death or disability of the Provisions of Rs 498 crore have been
He further said that discussions are on
primary borrower. held for future COVID-19 claims
with the Insurance Regulatory and
The scheme seeks to provide housing Development Authority of India (IRDAI) including IBNR (incurred but not
for everyone by 2022, as the country on making expense management limit reported) provisions, it added.
completes 75 years of Independence. the main criteria. "This would be ICICI Prudential stock settled at Rs
PMAY, however, falls short of covering similar to the concept of TER or total 604.85 on BSE, down 3.39 per cent
the risk of death or disability of the expense ratio, which is followed by from the previous close. T

The Insurance Times, September 2021 15