First year premium of life insurers fall 26.9% in November

Life insurance sector reported a drop in First Year Premium during November after witnessing a growth for four continuous months in FY21. First Year Premium of life insurers fell by 26.9% in the month of November 2020 to Rs 19,159 crore, compared to Rs 26,221 crore in November 2019.

Private companies reported a negative growth of 5.2% in November 2020 versus growth of 39.3% in November 2019 onYoY basis.

LIC's first year premium decreased by 35.6% in November 2020 compared to growth of 97.4% in November 2019. However, LIC continues to maintain its dominant share in the first year premium.

Private companies have a share of 85.3% in Sum Assured due to their focus on pure protection plans and a strong digital presence. Sum Assured for private companies has declined marginally by 9.5% in November 2020 when compared with November 2019.

The overall sum assured declined by 9.2% from Rs 30.1 lakh crore in Apr-November FY20 to Rs. 27.4 lakh crore in Apr-Nov FY21. Total sum assured of LIC declined by 48% in Nov 2020 on YoY basis.