Page 21 - Life Insurance Today March 2018

While private sector insurers posted 17.40 percent growth
Over the last 10 years, the penetration of nonlife insurance (13.64 percent growth in previous year) in their premium
sector in the country remained steady in the range of 0.5- income, LIC recorded 12.78 percent growth (11.17 percent
0.8 percent. However, its density has gone up from USD growth in previous year).
2.4 in 2001 to USD 13.2 in 2016.
(Source: Swiss Re,Sigma various issues) While renewal premium accounted for 58.13 percent
(62.18 percent in 2015-16) of the total premium received
Appraisal Of Indian Insurance Market by the life insurers, first year premium contributed the
remaining 41.87 percent (37.82 percent in 2015-16).
Registered insurers in India
During 2016-17, the growth in renewal premium was 6.62
At the end of March 2017, there are 62 insurers operating percent (6.24 percent in 2015-16). First Year premium
in India; of which 24 are life insurers, 23 are general registered a growth of 26.26 percent in comparison to a
insurers, 6 are health insurers exclusively doing health growth of 22.44 percent during 2015-16.
insurance business and 9 are re-insurers including foreign
reinsurers branches and Lloyd’s India. Further bifurcation of the first year premium indicates that
single premium income received by the life insurers
Of the 62 insurers presently in operation, eight are in the
recorded growth of 31.82 percent during 2016-17 (32.52
public sector and the remaining fifty four are in the private
percent growth in 2015-16). Single premium products
sector. Two specialized insurers, namely ECGC and AIC, one continue to play a major role for LIC as they contributed
life insurer namely LIC of India (LIC), four in general 32.71 percent of LIC’s total premium income (27.80
insurance and one in reinsurance namely GIC are in public percent in 2015-16). In comparison, the contribution of
sector. 23 life insurers, 17 general insurers, 6 standalone single premium income in total premium income during
health insurers and 8 reinsurers including foreign reinsurers 2016-17 was 14.89 percent for private insurance
branches and Lloyd’s India are in private sector. companies (13.75 percent in 2015-16).

REGISTERED INSURERS INCLUDING The regular premium registered 16.64 percent growth in
FOREIGN REINSURERS’ BRANCHES / 2016-17, as against 8.23 percent growth in 2015-16. The
private insurers registered a growth of 22.17 percent (13.18
LLOYD'S INDIA
percent growth in 2015-16); while LIC registered a growth
Type of Insurer Public Private Total of 10.37 percent in the regular premium (3.10 percent
Sector Sector growth in 2015-16).
Life 1 23 24
Unit-linked insurance products (ULIPs) registered a growth
General 6 17 23 of 12.70 percent premium from Rs. 46889.58 crore in
Health 0 6 6 2015-16 to Rs. 52845.26 crore in 2016-17. On the other
Re-insurers 1 8 9 hand, the growth in premium from traditional products was
(including Foreign at 14.24 percent, with premium of Rs. 365631.36 crore as
Reinsurers Branches/ against Rs. 320053.65 crore in 2015-16. Accordingly, the
Lloyd's India) share of unit-linked products in total premium decreased
to 12.63 percent in 2016-17 as against 12.78 percent in
Total 8 54 62
2015-16.
Life Insurance Market Share

Premium On the basis of total premium income, the market share
Life insurance industry recorded a premium income of of LIC decreased from 72.61 percent in 2015-16 to 71.81
`418476.62 crore during 2016-17 as against `366943.23 percent in 2016-17. The market share of private insurers
crore in the previous financial year, registering a growth of has increased from 27.39 percent in 2015-16 to 28.19
14.04 percent (11.84 percent growth in previous year). percent in 2016-17.

We tax air passengers like cigarettes and alcohol - we impose sin taxes on travellers.

Life Insurance Today March 2018 21