The year 2021 is coming to an end. The last 2 years has been turbulent for all sectors but the Insurance industry after initial hiccups is recovering fast and is on a growth path.
According to rating agency ICRA the total new business premium of domestic life insurance companies is likely to grow 14 per cent to Rs 3.18 lakh crore in the current financial year,
During the first seven months of fiscal 2022, the total new business (NB) premium growth for life insurance industry continued to remain subdued at four per cent or Rs 1.53 lakh crore due to the localised lockdown in the first quarter of FY2022,
The total sum assured (SA) for both the private sector and LIC had increased in FY2021 and in the seven months of FY2022 from the year-ago periods. Overall market scenario seems to be positive.
Minister of State for Finance Bhagwat K Karad said there is no proposal under consideration of the government at present for merger of public sector general insurance companies.
There is a lot of buzz in the industry for LIC launching its maiden IPO next year. It is slated to be one of the biggest IPO ever. The Government is also putting no stone unturned to make the IPO successful. Recently the IPO of Policybazaar was very successful but at the same time the IPO of Paytm got a beating in the market. Govt must be careful about the ideal pricing of the issue.
Insurers are experimenting with more sandbox products which is a good sign for the market expanding to provide customized products with better service. However, the Govt has not yet nominated the chairman of IRDA which needs to be done immediately.
This year’s sudden demise of Mr K L Naik has left a void in the insurance industry. Mr Naik was a renowned authority on the Reinsurance subject not only in India but overseas too. It is a great and irreparable loss to the Insurance Times family and the whole Reinsurance Industry. The Insurance Times family had a very special bonding with him which shall be cherished ever.
