Page 16 - Insurance Times January 2024

policyholders can opt for flexi income Rs 26,494.83 crore from Rs 34,588.8 34.02 per cent to Rs 14,735.49 crore
benefit under which 10 per cent of the crore recorded a year ago. The fall in from Rs 22,334.95 crore across the
basic sum assured payable can be group premium and change in taxation time period.
accumulated and withdrawn later, norms for policies with a higher ticket "If you look at the numbers, you can
subject to terms and conditions. LIC size dragged the premiums of the see the majority of the fall has been in
shall pay interest on such Deferred state-run Life Insurance Corporation of
Flexi Income payments at 5.5% per India (LIC) and private insurers, the group premiums, both single and
annum, compounding yearly. respectively. non-single. LIC generally dominates the
group segment. A fall in their business
Recently, during an interaction with According to the data released by the will affect the entire industry
Business Standard, LIC Chairman Life Insurance Council, the premium of numbers," said Saurabh Bhalerao,
Siddhartha Mohanty said new private insurers slipped 9.33 per cent Associate Director at CareEdge.
products are part of the insurer's key Y-o-Y to Rs 10,360.29 crore from Rs
strategies to gain market share in the 11,426.73 crore as a result of a change Among the private insurance
current financial year. LIC's market in product mix due to the measures companies, SBI Life Insurance, the
share declined to below 60% in 2023- taken to counter the impact of tax largest private insurer, reported a 9.84
24, which the insurer is looking to imposed on the premiums of Rs 5 lakh. per cent decline in premiums to Rs
regain. On the other hand, LIC's premiums 2,381.73 crore. HDFC Life Insurance
dropped by 32.86 per cent to Rs saw a 20.70 per cent Y-o-Y fall to Rs
LIC reclaims Rs. 5 trillion 16,134.55 crore from Rs 24,032.07 2,159.73 crore.

mcap mark, shares hit 18- crore as a result of a decline in group "The underlying theme that is running
premiums. through the entire life insurance
month high
The group premium of LIC dropped by segment for the current year is the
Life Insurance Corporation of India 37.48 per cent to Rs 11,649.54 crore change in taxation norms. There could
(LIC) crossed the Rs 5 trillion market in the reported month from Rs have been a change in the product mix
capitalisation mark in intra-day trade. 18,635.93 crore. The fall in the to accommodate this which has
LIC shares hit an intra-day high of Rs business has affected the overall group affected the private insurance
800 before settling at Rs 785, the premium of the industry which fell by players," Bhalerao added.
highest since June 3, 2022. At the last
close, the insurer was valued at Rs LIC world's fourth-largest insurer: S&P Global
4.97 trillion, making it the country's
LIC is the fourth largest insurer in the world, according to a ranking based
10th most valued firm. Shares of the
company have rallied nearly 30 per on life and accident & health reserves of companies in 2022 by S&P Global
cent in the past one month. Market Intelligence.
LIC is ranked after Allianz SE, China Life Insurance Company and Nippon Life
According to the data released by the
Insurance Company. According to the report, LIC's reserves stood at $503.7
Life Insurance Council, the premium of billion. Germany's Allianz SE ($750.20 billion), China Life Insurance Company
Life Insurance Corporation of India ($616.90 billion) and Nippon Life Insurance Company ($536.80 billion) are
(LIC) dropped by 32.86 per cent in the top three insurance companies in the world.
November 2023 to Rs 16,134.55 crore
from Rs 24,032 crore in the year-ago The reserves of LIC and Nippon Life Insurance Company reflect the reserves
period. Whereas the premium of of the financial year 2023 (April 2022 to March 2023).
private insurers slipped by 9.33 per The S&P list of the top 50 global life insurance companies was dominated by
cent to Rs 10,360.29 crore from Rs European firms, taking 21 spots. On an individual country basis, the US has
11,426.73 crore. the highest number of life insurers on the list, with eight companies
headquartered in the region, followed by the UK with seven companies.
Life insurers' premiums Out of the top 50 companies, Asian firms followed their European
fell 25.3% in November counterparts with 17 of them featuring on the list. China and Japan share
the top spots in Asia with five companies headquartered in the two countries.
The life insurance industry reported a
25.28 per cent decline in new business The top 50 companies were ranked on their life and accident & health
premium income in November 2023 to reserves, one of the key financial strengths of a life insurer.

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