Life insurance companies have recorded a 27 per cent growth in first-year premium collection in February.
Premium collected during the month was Rs 13,724.96 crore compared with Rs 10,791.68 crore in the corresponding month of 2017.
The growth in the first-year premium was driven by both individual and group single premium. The combined first-year premium of both individual and group segments was Rs 8,113.15 crore against Rs 5,697.15 crore, a year-on-year growth of 42 per cent.
Data from research firm ICRA shows that the share of single premium in the overall mix of private insurers has seen a steady increase from 29 per cent in 2012-13 to 35 per cent in 2016-17.
According to industry observers, a combination of policy subscription to save tax towards the end of the financial year and a rising interest among policyholders for unit-linked insurance plans is driving growth in the industry.
The introduction of the 10 per cent long-term capital gains tax in the 2018 Union budget on gains earned in excess of Rs 100,000 from stocks and equity mutual funds are increasingly pushing investors to consider Tulips as an alternative option.
