New business premium in the life insurance segment increased by 12 per cent in the year ended March 31, 2014, compared to the previous year, according to T S Vijayan, Chairman, Insurance Regulatory and Development Authority (IRDA).
“We have got only provisional, unaudited figures so far. The growth in the non-life sector was around 13 per cent,’’ Vijayan told Business Line on the sidelines of the first Insurance Awareness Day celebrations organised by IRDA here on Saturday.
During the year 2012-13, total premium in life and non-life insurance stood at Rs 2.87 lakh crore and Rs 63,000 crore respectively.
On the growth potential in the current year, the regulator said health insurance was poised for “significant” growth, while group insurance would drive growth in the life insurance segment. “In the non-life sector, things will depend on how the industry performs,” he added.
The market for traditional policies vis-à-vis unit-linked insurance products was gaining traction, the Chairman said.
Bancassurance
When asked about the delay in making banks insurance brokers, he said: “There are some concerns expressed by banks in becoming brokers.” On whether banks can be permitted to tie up with more than one insurer as a corporate agent, Vijayan said: “All this is only nomenclature but the point is better distribution.”
Earlier, while speaking after the formal launch of the regulator’s official page on YouTube and 12 animation films and brochures to promote insurance awareness, he said the foundation day of IRDA would from now on be celebrated as Insurance Awareness Day.
Since its establishment on April 19, 2000, IRDA had taken measures to promote the industry and welfare of consumers, he said, adding: “Life insurance penetration had gone up from 2.15 per cent of gross domestic product in 2001 to 3.17 per cent in 2012.”
