The Life Insurance Corporation of India (LICI) remains the largest player in the Indian life insurance market despite having 23 private companies operating competitively in the segment. As of January 2019, the share of private players was 33.74% in the Indian life insurance market. However, each year, the consolidated share of private players is noting a prominent increase whereas the share of LICI is recording a decline.
Marking a definite improvement in FY 17, the life insurance density was at $55 while its penetration in India had gone up to 2.76%. According to various industry insiders, rising digitalisation and new product offerings are well-placed to push the growth of this segment in coming years.
Market share, profit and growth
The total market value of LICI stood at ₹28.74 lakh crore at the end of FY 19 which was up by 8.61% as compared to the previous FY. The ‘Annual Report 2017-18’ of the Insurance Regulatory and Development Authority (IRDAI) states, “On the basis of total premium income, the market shares of LICI decreased from 71.81% in 2016-17 to 69.36% in 2017-18. The market share of private insurers has increased from 28.19% in 2016-17 to 30.64% in 2017-18. The market share of private insurers in new business premium was 30.64% in 2017-18 as compared to 28.89% in previous year. The same for LICI was 69.36% in the 2017-18 fiscal as compared to 71.11% in previous year.”
According to latest data, during FY 18, the life insurance segment as a whole reported a profit after tax (PAT) of ₹8511.99 crore that was increased as against ₹7727.89 crore of PAT collected in FY 17. LICI reported a PAT of ₹2446.41 crore with an increase of 9.62% over its performance in the previous fiscal. Additionally, out of 24 life insurance companies, 19 companies reported profits in FY 18.
The public-private tussle
This story is from the November 1-15, 2019 edition of BUSINESS ECONOMICS.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the November 1-15, 2019 edition of BUSINESS ECONOMICS.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Deposit shortage: challenges facing India's banking ecosystem
In any macroeconomic framework, the household sector plays a critical role as a driver consumption, savings, and overall economic activity.
India's future dreams in Semiconductors & AI
A midst the gloom of the RG Kar affair or the Tirupati laddu scam or even the continued terrorist attacks in Jammu & Kashmir, even after the completion of the first general election in the state, we find hope and encouragement when the founder of Nvidia, Jensen Huang, in his recent visit to India says \"India will be a gigantic opportunity for us\".
The Ramayana: Justice and Modern Man
Consisting of Twenty-Four Thousand worthy Sanskrit verses, the Ramayana is one such epic, which provides a pathway to one committed to justice to establish himself as an ideal human being by following the exemplary life of its hero.
Vallabhbhai Patel: A Sardar of Farmers, A Matchless Social Reformer and the Maker of United India
Sardar Vallabhbhai Patel was instrumental in unifying the princely states to form the Union of India.
Understanding Prosperity: NOBEL Prize awarded for groundbreaking research on institutions and economic development
The Royal Swedish Academy of Sciences has awarded the Memory of Alfred Nobel to three US-based economistsDaron Acemoglu, Simon Johnson, and James A. Robinson\"for their studies on how institutions are formed and affect prosperity.\"
Sinking Resources: Groundwater crisis and sustainable solutions in Kolkata
Kolkata's underground water crisis is becoming a serious issue, driven by rapid urbanization and the construction of high-rise buildings.
Tourism Industry positively impacted by the festive season
Diwali transforms streets into a spectacle of festive lights, Diwali transforms streets into olis, and families gearing up for grand celebrations.
RBI's Shift to a Neutral Stance: Signaling a New Phase in Monetary Policy
For over a year, the Reserve Bank of India (RBI) has taken a firm stance against inflation, raising interest rates by 250 basis points between May 2022 and February 2023 in response to post-pandemic price pressures.
UK Budget
There _ he latest UK budget represents a departure from previous fiscal documents.
Han Kang's Historic Nobel Prize Win
The 2024 Nobel Prize in Literature has been awarded to T South Korean writer Han Kang, 53, known for her works including The Vegetarian, The White Book, Human Acts, and Greek Lessons.
