Life insurance premium collection up 13% in 2010: Council

MUMBAI: Total premium collected by the life insurance industry increased 13 per cent to Rs 1,86,285 crore in the calender year 2010 from from Rs 1,64,399 crore in the previous year.

The growth comes in the backdrop of significant regulatory changes made in product profile of ULIPs (unit- linked insurance products) in 2010, which was also a year in which a few private life insurers completed a decade of their existence, the Life Insurance Council said in a statement.

As per data released by the Council, the apex industry body of all life insurance companies in India, it is apparent that companies continue to trim cost.

The number of direct employees has reduced from 2,67,819 to 2,49,635 YoY, a drop of 18,184. The number of agents has also dipped by 2,73,984 to 27,10,301 from 29,84,285. Life Insurance Corporation, the only state-owned life insurer, has also reduced its agent strength by 62,956.

"The life insurance industry is evolving post- reformative initiatives by the IRDA (insurance regulator) and the companies are now focusing on quality growth," Life Insurance Council's Secretary General S B Mathur.

The new business premium of life companies has grown by 28 per cent YoY to Rs 86,854 crore till December 31, 2010, as compared to Rs 67,604 crore last year.

However, this increase is attributed to the fact that the industry saw a huge surge in collection of new business premium before the new ULIP regulations came into force from September 1, 2010, the Council said.