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India : Finance Minister Reviews the Various Issues Related to the Life and Non-Life Insurance Sector; Advises the Public Sector General Insurance Companies to Ensure that no Further Market Share is L.

The Union Finance Minister Shri P. Chidambaram today reviewed the various issues related to the life and non-life insurance sector.The Finance Minister reviewed the performance of the public sector insurance companies with a view to take stock of key performance indicators and the status of initiatives taken-up in the recent past, and identify the road map for continued rapid growth of the industry in the future.

Along with the Finance Minister, Shri Chidambaram, those present include Shri Namo Narain Meena, Minister of State For Finance, Shri G.S.Sandhu, Secretary, Financial Services(FS) Shri T.S. Vijayan, Chairman, IRDA, Hyderabad, Shri S.K. Roy, Chairman, LIC of India, Shri A.K. Roy, CMD, General Insurance Corporation of India, Mumbai, Shri S. Sarker, MD, LIC of India, Shri G. Srinivasan, Chairman, GIPSA and CMD, NIACL, Mumbai, Shri Milind Kharat, CMD, UIICL, Chennai,Shri. A.K. Saxena, CMD, OICL, Delhi, Shri. P.J.Joseph, CMD, AICIL, Delhi and Shri Girija Kumar, Officiating CMD, NICL, Kolkata among others.

It was noted with satisfaction that LIC has shown a growth of close to 18% in First Year Premium (FYP) income during 2013-14 as against 11.57% growth of the life insurance industry as a whole. LIC has increased its market share by FYP by 3.97 % over 2012-13, from 71.36% to 75.33% in 2013-14. The market share in number of new policies sold has also gone up during the period by 1.20% to 84.44%.

The public sector general insurance companies have also shown a growth of 10% in gross premium during 2013-14 and projected a growth of 100% in the next five years. Profitability of the public sector general insurance companies has also improved in 2013-14. They have however, seen a marginal decline in their market share during 2013-14. The Finance Minister Shri Chidambaram advised the public sector general insurance companies to ensure that no further market share is lost and the current level of 53% is maintained and steadily improved upon.

In the case of LIC, it was noted that the persistency of life insurance policies during 2012-13 has improved for the initial post-subscription years but it remains a challenge to maintain this in the latter years of the policy. The Finance Minister Shri Chidambaram stressed the need to study the persistency for ULIP and non-ULIP policies separately, to pointedly undertake focused efforts for each category. It was noted that LIC maintained its excellent claim settlement track record with 99.3% settlement of death claims and 99.68% maturity claims.

The Finance Minister Shri P. Chidambaram stressed the need to enhance insurance penetration and density to attain global levels in a reasonable time frame, through greater outreach and access.

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Publication:Mena Report
Geographic Code:9INDI
Date:May 13, 2014
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