In line with the expectation of the insurance industry, life insurance companies like HDFC Life, Max Life, ICICI Prudential and SBI Life witnessed a high growth in their new business premiums for March, as they have relatively strong exposure to non-ULIP policies with annual premium of above Rs 5 lakh.
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The government, in the FY24 Budget, proposed to tax income from all non-ULIP products i.e. par and non-par, where aggregate insurance premium paid in a year exceeds Rs 5 lakh. (IE)
In line with the expectation of the insurance industry, life insurance companies like HDFC Life, Max Life, ICICI Prudential and SBI Life witnessed a high growth in their new business premiums for March, as they have relatively strong exposure to non-ULIP policies with annual premium of above Rs 5 lakh.
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The good growth in these companies’ new business premiums indicates a surge in their business as people rushed to pre-book such policies to escape the impact of taxation change announced in the Union Budget.
In March, HDFC Life, Max Life, ICICI Prudential and SBI Life witnessed an 83.45%, 42.59%, 30.78% and 23.15% growth, respectively, in their first-year premiums, according to data released by the Life Insurance Council on Thursday.
The government, in the FY24 Budget, proposed to tax income from all non-ULIP products i.e. par and non-par, where aggregate insurance premium paid in a year exceeds Rs 5 lakh. The proposal came into effect from April 1.
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For all private players, individual non-single premium during the month under review stood at Rs 13,635.21 crore, up 57.35% over Rs 8665.05 crore in March 2022.
Even as private sector life insurers posted a healthy 35.14% year-on-year growth in new business premium for the reporting month, the industry’s collective business was pulled down by around 32.14% y-o-y fall in new business premium of Life Insurance Corporation of India, the largest player in the market.
The life insurance industry’s first-year premiums witnessed a 12.63% Y-O-Y decline to Rs 52,081.12 crore in March, according to the data from the Life Insurance Council.
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For the financial year 2022-23, the industry’s new business premium saw a 17.91% rise to Rs 3.7 trillion, from Rs 3.14 trillion for the previous financial year, as LIC and private life insurers posted 20.04% and 16.67% growth, respectively.
