The life insurance industry reported strong growth in September 2021 with retail weighted premiums (RWRP) up 30% year-on-year. Strong growth in September 2009 boosted RWRP growth in 2010, which was 19.6% from 16.7% in August 2021.
LIC’s RWRP growth rate returned to 22% in September 2009, and YTD FY22’s growth rate reached 3.7%. Private companies maintained their growth momentum, recording 35% year-on-year RWRP growth in September 2009, boosting year-to-date 2010 growth to 32% year-on-year. In the two years, the industry’s RWRP was 8.1% in the private sector and 0.9% in the LIC, so the CAGR in YTD in 2010 was 5.2%, up from 2.4% in August 2009. bottom.
Over the last two years, private companies have increased their RWRP market share from 59% to 62.2%. Overall, the 2010 trends underscore the long-term trend of the retail life insurance market gradually shifting to private sector with strong brand and distribution reach.
Private players gain momentum
Private player growth appears to be heavily driven by increased ticket sizes, as the number of new retail policies increased slightly by 3.4% year-on-year. The increase in ticket size may reflect changes in the product mix to ULIP and non-saving products. LIC recovered in September 2009 with 22% year-on-year growth in RWRP, and YTD RWRP growth rose 3.7% year-on-year.
The number of LIC personal insurance policies increased by 19.7% year-on-year in YTD 2010. The lack of growth in sales of high-value annuity products and the lack of focus on Ulips seems to be hampering LIC’s growth. These factors underpin the long-term trend of the retail life insurance market to gradually shift to larger private companies with strong brands and an extensive bancassurance network.
HDFC Life Report Moderate Growth
For YTD FY22, HDFC Life reported 22% year-over-year RWRP growth and 24% year-on-year WRP growth. These growth rates appear modest compared to top peers, which is YTD FY21’s September 2020 RWRP growth of 2% year-on-year. The two-year RWRP CAGR was strong at 11.6%. RWRP growth appears to be heavily driven by ticket size growth, as the number of individual insurance policies decreased by 8% year-on-year. This shows that the share of Ulips and non-standard savings is increasing in individual businesses.
Edited excerpt from Emkay Insurance Sector Report
Life insurance: Private players win due to increased ticket size
https://www.financialexpress.com/money/insurance/life-insurance-private-players-gain-aided-by-increasing-ticket-sizes/2350043/ Life insurance: Private players win due to increased ticket size