Page 18 - Insurance Times October 2020

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ICICI Pru Life to raise up to NBP rose a little over 30 per cent to a revival for the life insurance industry
Rs. 1,200 crore by issuing Rs 16,602.84 crore and private insur- by Q2. Due to the pandemic, insurers
are seeing a surge in demand for term
ers saw a rise of 20 per cent to Rs
NCDs 8,763.48 crore. products and guaranteed products,
ICICI Prudential Life Insurance said it The month saw strong growth for pri- while unit-linked products are seeing a
will raise up to Rs. 1,200 crore by issu- vate life insurers, backed by a power- slump due to market volatility. From
ing non-convertible debentures (NCDS) ful performance by HDFC Life, Max being a push product, insurance has
on private placement basis. "The Board Life, Tata AIA, and Bajaj Life. SBI Life managed to become a nudge product
of Directors has at their meeting held exhibited the highest month-on-month due to uncertainties around the cur-
on October 7, 2020 approved raising growth among large insurers, in terms rent pandemic, said experts.
capital by issuance of subordinated of individual as well as total annual
debt instruments in the nature of premium equivalent, said ICICI Securi- Max Life Insurance intro-
rated, listed, redeemable, unsecured, ties. duces 'Buy Now - Pay at
fully paid-up, non-cumulative, NCDS up The rise in NBP was particularly aided
to Rs. 12 billion," ICICI Prudential Life by single premiums (both individual and Approval' feature
Insurance Company said. group), even as non-single premiums Max Life has released 'Buy Now, Pay
were still struggling. at Approval' feature that allows one to
Life insurers' new business While NBP for Q2 is up 16 per cent, book an insurance policy in advance and
premium grows 26.5% the cumulative NBP in the first six pay at the time of issuance, making life
insurance purchase simpler and more
In Q2, Indian insurers netted new busi- months of the financial year is still in accessible. Nearly 8 per cent of all ap-
ness premium to the tune of Rs 75,392 the red. In the April-September period, plied policies end up in decline or post-
crore, with LIC witnessing a rise of al- insurers netted premiums to the tune ponement, creasing hassle for the con-
most 14 per cent to Rs 51,488 crore. of Rs 1.24 trillion, down 0.82 per cent, sumer to receive a refund. This new
NBP of private insurers rose 20 per compared with Rs 1.25 trillion in the feature aims to efficiently navigate this
cent to Rs 23,904.2 crore. same period last financial year. hassle by letting customers purchase a

The previous quarter had been marred Although the private players have policy worry-free through a digital pay-
by pandemic-induced lockdowns en- managed to be in the green, with a ment instrument and away from the
forced across the country, and NBP of meagre 2.6 per cent growth in NBP to hassle of money getting blocked in
insurers had plummeted more than 18 Rs 36,709 crore in the first six months case of any delay in policy issuance due
per cent. of FY21, LIC has seen a 2.18 per cent to underwriting requirements.
fall in NBP to Rs 88,018 crore for the
In September, NBP of life insurers was same period. The 'Buy Now - Pay at Approval' fea-
up 26.47 per cent to Rs 25,366.32 ture is applicable to customers paying
crore, with LIC leading the way. LIC's Industry experts had earlier indicated via a digital instrument for online pur-

The Insurance Times, October 2020