Page 7 - Life Insurance Today July - December 2020

OECD Insurance Statistics: Data and Performance Indicators
Category Ratio
Data (for domestic. Y Number of insurance undertakings
foreign-controlled Y Number of insurance employees
and branches and agencies O Insurance companies (tun- and pat-time staff)
of drirect insurers O Intermediaries (brokers and agents and their staff) but erckiiing those who are
and reinsurers) not directly iwohad in the insurance industry (e g solicitors)
Y Gross and net premiums pram (bit. non-kft (woods and by class of Ide and non-kfe)
foe domestic and foreign risks and business written abroad
Y Gross claims pad (on direct nisomess and constant accepted) and outstanding claims
provisions
Y Gross technical provisions
Y Gross operating expenses
Y Commissions (on direct business and reinsurance accepted)
Y Investments by asset class (life, non-life. composite. direct and reinsurers) and net
investment income
Y Available and minimum solvency capital
Y Shareholder equity and net income
Performance Indictors Y Premiums (volume and growth). premiums per employee. insurance density and
penetration
Y Life and non-Ide insurance snare of the total Insurance market
Y Country's market share in the OECD
Y Foreign insurers' market share in the (foreign market)
Y Balance sheet and income
Y Portfolio allocation
Y Ratio of reinsurance accepted
Y Retention ratio (net written premiums/gross premiums written)
Y Loss ratio. expense ratio and combined rate (non-life)

Life Insurance on Growth path using direct-to-consumer channels, home loan credit protect
and NPS-linked annuity products. These also had a higher
New Business Premiums (NBP) of life insurers saw a growth
value of new business (VNB) margins compared with par and
of 14.79% in August at Rs 27,039.79 crore, against Rs
non-par products, and a change in product mix helped
23,554.94 crore in the same month last year, led by a surge
in the group single premium business. Categories such as insurance firms demonstrate higher profitability.
individual single premiums and individual non-single
Until before the pandemic, the insurance industry was on
premiums recorded a decline in August. According to Kotak
track for a strong year in FY20. The life insurance sector
Institutional Equities, individual annualized premium
equivalent (APE) declined 6% y-o-y for private players in the was experiencing rapid growth having garnered Rs.2.3
month under review, broadly similar to the past two trillion first-year premiums between April 2019 and
months. February 2020, indicating 31% growth over the previous
year. APE is the sum of annualized first year premiums on
Staggered lockdowns disrupting physical channels, weakness regular premium policies and 10% of single premiums,
in capital markets, focus on cash conservation and written by insurance companies during any period from both
moderation in protection business post rate hikes dampened retail and group policyholders.
the pace of recovery. The strong growth in life insurance
products was particularly driven by protection (term) plans, Private life insurers saw the growth of 13.74% in their NBP

"Lust is mortal, but love is divine."

Life Insurance Today July - December 2020 7