Page 42 - Life Insurance Today July - December 2020

Table I.8: Premium Underwritten by Life premium was 31.24 per cent in 2019-20 (33.80 per cent in
Insurers previous year). The same for LIC was 68.76 per cent (66.20
per cent in previous year). Similarly, in renewal premium,
Insurer Premium (Rs.crore) Market Share (%) LIC continued to have a higher share at 64.12 per cent
2018-19 2019-20 2018-19 2019-20 (66.58 per cent in previous year) when compared to 35.88

LIC 3,37,505.07 3,79,389.60 66.42 66.22 per cent (33.42 per cent in previous year) share of private
(6.06) (12.41) insurers.
Private 1,70,626.96 1,93,520.59 33.58 33.78
The traditional products registered a growth of 13.40 per
Sector (21.37) (13.42)
cent in 2019-20, with premium of Rs. 4.90 lakh crore as
Total 5,08,132.03 5,72,910.19 100 100
against Rs. 4.32 lakh crore in previous year. On the other
(10.75) (12.75)
hand, Unit-linked products (ULIPs) registered a growth of
Note: Figures in bracket indicates growth (in per cent) over 9.05 per cent with increase in premium from Rs. 76,152
previous year. crore in 2018-19 to Rs. 83,046 crore in 2019-20. The share
of unitlinked products in total premium marginally
Further bifurcation of the new business premium indicates decreased to 14.50 per cent in 2019-20 as against 14.99
that single premium income received by the life insurers per cent in 2018-19. Insurer wise details are provided in
recorded a growth of 10.71 per cent during 2019-20 (10.41 Statement 5.
per cent growth in previous year). Single premium products
continue to play a major role for LIC as they contributed Life Reinsurance
31.71 per cent of LIC’s total premium income (32.89 per
During 2019-20, Rs. 327.04 crore was ceded as reinsurance
cent in previous year). In comparison, the contribution of premium by LIC (Rs. 319.67 crore in 2018-19). The private
single premium income to total premium income for private insurers together ceded Rs. 3074.04 crore (Rs. 2079.96
insurance companies was 18.94 per cent (18.04 per cent
crore in 2018-19) as premium towards reinsurance.
in previous year) during 2019-20. Retention ratio of Life insurers was 99.41 per cent for
2019-20 (99.53 per cent for 2018-19).
The first year premium registered a significant growth of
39.71 per cent in 2019-20, as against 11.39 per cent Policies Issued by Life Insurers
growth in previous year. While LIC registered a remarkable
During 2019-20, life insurers issued 288.47 lakh new
growth of 85.02 per cent in the first year premium (11.30
per cent in previous year), the private life insurers individual policies, out of which LIC issued 218.96 lakh
policies (75.91 per cent) and the private life insurers issued
registered a growth of 5.82 per cent (11.46 per cent in
69.50 lakh policies (24.09 per cent). While the private sector
previous year). Segment wise premium underwritten is
registered a decline of 4.05 per cent in the number of new
provided in Statement 4.
policies issued against the previous year, LIC achieved a
growth of 2.30 per cent (Table I.10).
The market share of private insurers in new business

Table I.9: Segment-wise Premium Underwritten by Life Insurers
S. Segment Item LIC Private Sector Total
No. 2018-19 2019-20 2018-19 2019-20 2018-19 2019-20
1. First Year Premium (Rs. crore) 31,326.22 57,958.76 41,887.02 44,326.64 73,213.24 1,02,285.40
Premium Growth (%) 11.30 85.02 11.46 5.82 11.39 39.71
Market share (%) 42.79 56.66 57.21 43.34 100 100
2. Single premium Premium (Rs. crore) 1,11,009.74 1,20,317.48 30,780.06 36,659.50 1,41,789.80 1,56,976.98
Growth (%) 4.21 8.38 40.54 19.10 10.41 10.71
Market share (%) 78.29 76.65 21.71 23.35 100 100

42 July - December 2020 Life Insurance Today