New Delhi, Sept. 22: Private life insurers have increased their premium incomes in the first quarter of this fiscal (April-June) — the most compelling evidence of rapid business expansion.
The latest quarterly figures released by the Insurance Regulatory Development Authority (IRDA) show that ICICI Prudential Life Insurance Company is at the top of the totem pole with a premium income of Rs 70.2 crore in the first quarter of this year.
“The maximum growth in the first quarter has come from unit-linked products, which contributed over 60 per cent of business, along with retirement products,” said Saugata Gupta, head of marketing at ICICI Prudential Life Insurance.
He added, “In fact, we have identified retirement solutions and child plans as two growth areas, and have decided to invest the resources necessary to raise awareness and build brand recognition and loyalty in these two segments.”
The insurer has grown its premium income by almost 130 per cent over the corresponding period last year.
Similarly, Tata AIG Life Insurance has also grown by over 150 per cent in premium income from April-June 2002 to the same period this year.
A senior official from the company said: “We have earned Rs 26.5 crore premium in the first quarter of this fiscal. It stood at mere Rs 10.57 crore last year. The growth is very encouraging.”
For most insurers endowment and whole-life policies constitute a major chunk of their product kitty. An official from Max New York Life said, “For us, whole-life policy is the flagship policy which constitute about 75 per cent of our sales, followed by endowment product.”
Insurers believe that attractive investment option coupled with life insurance cover and a saving element is what makes people go in for endowment products.
In addition, insurers like Aviva Life Insurance, Birla Sun Life Insurance, Tata AIG Life Insurance and ICICI Prudential believe that unit-linked insurance policies will slowly replace traditional products as they give more authority of investment and flexibility to the insured.