Life insurance sector sees 7% rise in premium

Life insurance industry saw its annualised premium equivalent (APE) at 7% year-on-year for the first six months of the current financial year. While private players witnessed higher growth at 13%, Life Insurance Corporation of India (LIC) saw a growth at just 3% (year-on-year) at Rs 16,296 crore in the period April-September, suggests the data from Kotak Institutional Equities. Participants in the insurance industry say LIC is facing challenges in the group insurance segments in the current financial year. The data from Insurance Regulatory and Development Authority of India shows that, in the current financial year till September, LIC received first year premiums of Rs 63,480.68 crore as against Rs 68,224.29 crore in previous financial year a negative growth of around 7%. The decline in premium is higher in the group insurance business for LIC.