Positive Growth of Indian Life Insurer is Good Sign for future health of the Industry

It’s surprising to note that Indian Life Insurance Industry is showing positive growth in the New Business during the performance of Financial Year 2016-17, in spite of 500 and 1000 currency demonetization. Insurance Regulatory and Development Authority of India released the new business data of Life Insurance industry on 20^th March 2017. According to data 26.23% growth managed by Life Insurance Industry in India while they are showing -1.06 de-growth in policies at the end of financial year of 2016-17.  21 out of 24 Life Insurance Companies are showing positive growth in between 2.94% to 56.45% in compression of their last year new business performance. Negative growth showed by AEGON Life (-32.94%), Reliance Nippon Life (-32.52%) and Aviva Life (-23.96%). Life Insurance industry managed new business premium of Rs. 175022.49 crores in the financial year 2016-17. Last year i.e. 2015-16 it was 138657.31crores. Total Number of policies produced by life insurers are 26456645 in the financial year 2016 -17. It was 26740088 in the financial year 2015-16. Life Insurance Corporation of India able to manage new premium of Rs. 124396.26 crores while SBI life able to procure Rs. 10145.76 crores new premium highest in private life insurers at the end of Financial Year 2016-17.

The performance of Life insurance industry must be appreciable by Government of India and Finance ministry as even demonetization of Rs. 500 and 1000 industry able to show positive growth. Looking into the performance of life insurance industry Indian life insurers and regulator of the industry may feel happy that the future of life insurance in India will brighter than current status.