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Trichy, Tamil Nadu, India
Working as an Assistant in LIC of India, Rockfort BO, Trichy, TN. Having a strong belief that LIC's welfare is our welfare and always trying to work towards that. Also functioning as an office bearer of AIIEA Thanjavur Division.

Monday, December 14, 2009

Private Insurance cos not in good health; see drop in biz volumes

The first half of this fiscal will be something private insurance companies want to put behind them. New business volumes have dropped 15% over the period. An edelweiss report blames this fall on shrunken risk appetite at the retail level, and a lack of demand for unit linked insurance plans.
-TV18’s Avni Raja report.
The stock markets may have traded firm in recent months and even hit 2009-highs, but private are not smiling. They say investor sentiment is still low, and premium inflows have been hit.
As per an Edelweiss report, only insurance giant LIC has managed to clock a volume growth of 16% in its new business, and that's because it banks hugely on its traditional products. The report adds that private players, who demand largely on unit-linked insurance plans (ULIPs), have not fared well.
Of the 23 private insurance players, only two have reported growth in new business. All the others have lost new business—ICICI Prudential saw a 36% drop, Bajaj Allianz saw volumes fall 38%, and Kotak's new business fell 42%.
The main reason for this, the report says, is a fall in demand for ULIPs. It says players will have to revert to traditional products to regain this lost momentum. One main reason for the better performance of traditional products is that IRDA's charge cap does not apply to them. So insurers continue to offer higher commissions on traditional policies, and these products find favour with agents and distributors.

1 comment:

  1. sir due to your most valuable informentation i got much more confidence as a agent , i have no word how can i say thanks-
    manoj rathi 9422830224,amravati,maharashtra