Having witnessed a drop in new premium collections in 2012-13, state-owned Life Insurance Corporation of India aims to grow its business by 15 per cent this fiscal.
According to Sushobhan Sarker, Managing Director, LIC, the growth in new premium collections would be achieved by increasing insurance penetration in underserved areas.
In 2012-13, LIC registered a 6.5 per cent drop in new premium collection at Rs 76,245 crore compared with Rs 81,514 crore in the corresponding period last year.
Over all, new premium collection by 23 life insurance companies in the country fell by 6.3 per cent to Rs 1,07,010 crore during the year, compared with Rs 1,14,232 crore in the year ago period.
Sarker attributed the fall to the slowdown in economic growth and regulatory changes.
“The drop in new business was primarily on account of a lower growth in the economy and a series of regulatory changes in the industry. However, this year we expect 15 per cent growth in new premium collections,” Sarker told newspersons on the sidelines of an insurance seminar organised by the Bengal Chamber of Commerce and Industry here on Friday.
Ponzi schemes – Impact
According to Sudhin Roy Chowdhury, Member (Life), IRDA, the high penetration of Ponzi schemes has had an impact on the first premium income of many insurance companies.
“In the last one-two years we have been getting some feedbacks from agents who were not able to mobilise investments due to the operation of Ponzi schemes in certain areas,” Chowdhury said.
Responding to a query on some insurance agents selling such schemes, he said, “We have not come across any such instances or complaints pertaining to agents selling such products.
However, I feel there needs to be a separate law for life and general insurance agents, preventing them from selling such schemes.”
shobha.roy@thehindu.co.in