Page 14 - Life Insurance Today December 2017

Methodology
The present study is descriptive in nature. It includes the
individual life micro insurance policy of the selected
insurers. It is based on secondary data gathered from
annual reports of concerned units. The period of study
covers post Micro Insurance Act, 2005 i.e. ten years from
2006-07 to 2015-16. Descriptive statistical tools like
growth index, mean, standard deviation, CAGR, and t-test
have been applied for the purpose of analyses.

Data Analysis and Interpretation
Life insurance falls under the category of unsought It is clear from the Table 1 that LIC of India has performed
product. The product mix of life insurers contains life micro well as compared to ICICI Prudential in terms of compound
insurance products in the form of special plan. Micro annual growth rate, mean and growth index. The average
insurance is a plan offered to the lower and economically number of policies issued by LIC of India is 18.63 lakhs
backward masses due to their low purchasing power. That whereas in case of ICICI Prudential it is 3.79 lakhs which
means they are not able to afford high premium charged is five times lower to LIC of India. The standard deviation
in other plans. The Micro Insurance Act, 2005 advocates of LIC of India is high which reveals that there have been
the wide spread of micro insurance policies. As a matter fluctuations and data have been spread out over a wide
of fact, the micro insurance coverage is still at incipient range of values.
stage. Table 1 highlights the performance of LIC of India
and ICICI Prudential with respect to life micro insurance The growth index of LIC of India connotes that it has
plans under new business. increased to more than five times whereas the ICICI

Table 1 : Performance of LIC of India & ICICI Prudential with Respect to Life Micro

Insurance under New Business
Years LIC of India Growth Contribution ICICI Prudential Growth Contribution
(No. of to Total New Life Insurance Index to Total New
Policies) Business in Company Ltd. Business in
Policies (%) (No. of Policies) Policies (%)
2006-07 80637 100 --- 434000 100 22.00
2007-08 854615 1059.83 --- 637800 146.96 21.90
2008-09 1541218 1911.30 --- 774700 178.50 29.00
2009-10 1985145 2461.65 --- 423600 97.60 24.00
2010-11 2951000 3659.61 7.97 352899 81.31 25.70
2011-12 3826783 4745.69 10.71 331133 76.30 32.00
2012-13 4340235 5382.44 11.81 305000 70.28 32.00
2013-14 2206000 2735.72 6.40 212650 49.00 27.00
2014-15 400000 496.05 1.98 138442 31.90 22.00
2015-16 452291 560.90 2.20 183695 42.33 31.60
Mean 1863792.40 --- 6.84 379391.90 --- 26.72
SD 1480882.38 --- 4.15 200194.79 --- 4.23
CAGR (%) 18.82 --- --- -8.24 --- ---

Source: Annual Reports of LIC of India & ICICI Prudential
14 December 2017 Life Insurance Today

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