MUMBAI: Reliance Life, Star Union Life and Aviva Life saw their income from new policy collapse by 60% in April-August 2016 as poor sales of regular premium income policies dragged down the overall business. Their loss translated in to gains for rivals SBI Life, Tata AIA and the Life Insurance Corp. which reported a growth of more than a quarter, data from the regulator shows.
Reliance Life reported 60.65% drop in income from selling new policies in April-August partially due to change in leadership. Similarly, Aviva Life saw 55.35% and Star Union Daiichi 57% decline in new business income in the period, according to the data by the Insurance Regulatory and Development Authority. Star Union Daiichi, a joint venture between Bank of India, Union Bank of IndiaBSE 0.11 % and Dai-ichi, saw the share of bank channel contribution fall during the period. Public sector banks are going through their set of challenges in dealing with bad debt and their focus has shifted to managing it ..
During the period, SBI Life reported a 62% increase in income from selling new policies. Tata AIA, which has Citibank as its bancassurance partner, saw 48% jump in income. State-run Life Insurance Corporation, which sells mostly endowment policies, saw income rise 36% in the April-August period.
ICICI Prudential reported 9% increase in income from selling new policies with the help of individual business, as the company focused on growing profitable business segment ahead of its initial public offering.
This year the growth is continued revival of Ulips which started last year,” said Sandeep Ghosh MD and CEO Bharti Axa Life Insurance. “The shrinking phase of 2010-13 is over and now individual lines of businesses have started to perform.
Date – 20 – 09 – 2016.
Source – Economic Times.