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ANNUAL REPORT 2007-08

TABLE 7

PREMIUM UNDERWRITTEN BY LIFE INSURERS

(Rs. Crore)

Insurer

LIC

Private Sector

Total

LIC

Private Sector

Total

LIC

Private Sector

Total

LIC

Private Sector

Total

LIC

Private Sector

Total

56223.56

59996.57

(97.17)

(6.71)

19425.65

33715.95

(89.08)

(73.56)

75649.21

93712.52

(94.96)

(23.88)

Renewal premium 71599.28 (14.97) 8827.36 (83.37) 80426.64 (19.87) Total premium 127822.84 (40.79) 28253.01 (87.31) 156075.86 (47.38)

(72.60) First Year premium

2007-08

89793.42 (25.41) 17845.47 (102.16) 107638.89 (33.83)

149789.99 (17.19) 51561.42 (82.50) 201351.41 (29.01)

(78.10) 3950.82 (44.04) 30288.04

26222.00 (-12.26) 28666.15 (85.24) 54888.16 (21.00)

33774.56 (28.24) 5049.80 (27.82) 38824.36 (28.18)

2006-07 Regular premium 29886.35

(113.40) Single premium 26337.22

(117.70) 15474.83

(105.59) 45361.17

The size of life insurance market increased on the strength of growth in the economy and concomitant increase in per capita income. This resulted in favourable growth in total premium for both LIC (17.19 per cent) and private insurers (82.50 per cent) in 2007-08. Private insurers have improved their market share from 18.10 per cent in 2006-07 to 25.61 per cent in 2007-08 in the total premium collected during the year.

Segregation of the first year premium underwritten during 2007- 08 indicates that Life, Annuity, Pension and Health contributed 59.54; 2.75; 37.61 and 0.10 per cent to the premium underwritten, as against 67.40; 2.62; 29.94 and 0.04 per cent respectively in the previous year. The shift in favour of pension products is visible for the third consecutive year.

Increase in the renewal premium is a good measure of the quality of business underwritten by the insurers. It reflects increase in persistency ratio and enables insurers to bring down the overall cost of doing business. The renewal premium underwritten by the life insurance industry, during 2007-08 grew by 33.83 per cent as against 19.87 per cent in 2006-07. Private insurers and LIC reported growth rates of 102.16 per cent and 25.41 per cent respectively during the year under review.

TABLE 8 MARKET SHARE OF LIFE INSURERS

(Per cent)

Insurer

LIC Private Sector Total

LIC Private Sector Total

65.89

47.77

34.11

52.23

100.00

100.00

86.96

86.99

13.04

13.01

100.00

100.00

2006-07

2007-08 Regular Premium)

Single Premium

First Year Premium

LIC Private Sector Total

74.32

64.02

25.68

35.98

100.00

100.00

Renewal Premium

LIC Private Sector Total

89.02 10.98 100.00

83.42 16.58 100.00

Total Premium

LIC Private Sector

81.90 18.10

74.39 25.61

Note: Figure in brackets indicate the growth (in per cent)

Total

100.00

100.00

18

18

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