The life insurance sector has seen a 11.5 per cent rise in new premiums for FY14. Life insurers collected total premiums of Rs 1,19,641 crore for FY14, compared to Rs 1,07,235 crore in FY13.
Reliance Life Insurance chief executive Anup Rau said: “Our focus for the current financial year is to build successes of the last year, sustain business momentum, improve business quality further, enhance service experience and increase cost efficiency. We are confident of double-digit growth in 2014-15 with a focus on traditional products, agent productivity and improved quality of business, which is reflected by way of increased average ticket size.”
Rau explained that if one looks at the number of uninsured and under-insured in the country, the long-term perspective for the industry and life insurers is very positive.
Reliance Life Insurance has recorded a 40 per cent rise in its new business premium income in the financial year ended March 31, 2014. Helped by a significant increase in individual insurance segment, Reliance Life saw its new business premium collection rise to Rs 1,934 crore by the end of FY14, from Rs 1,377 crore a year ago.
From January 2014 onwards, life insurance companies were under a new regulatory regime for their traditional product portfolio. The new rules made changes in the surrender charges and product structure, making the policies more transparent.
Insurers said that while there were some hiccups in the initial one or two months, customers have now become comfortable in purchasing them.
Sandeep Batra, executive director at ICICI Prudential Life Insurance, said products have become transparent and more customer-friendly, the on-boarding process is simplified and spells convenience.
“The overall positive economic sentiment scores well for the Indian life insurance sector, which in turn could lead to a double digit growth in premiums,” he added.
LIFE INSURANCE INDUSTRY GROWTH
Rise in new premiums in FY14
Rs 1,19,641 cr
Total premiums collected by life insurers in FY14
Rs 1,07,235 cr
Total premiums collected by life insurers in FY13