Life insurance distributors see 54% drop in Ulip commission

Life insurance distributors have witnessed a drop of 54 per cent in commission earned from unit-linked insurance policies (Ulips) to Rs 1,733 crore in the financial year 2011-12 (FY12), compared with Rs 3,748 crore in FY11. Ulip commission as a proportion of the total commissions also saw a decrease of 11.13 percentage points to 9.37 per cent in FY12, from 20.5 per cent a year ago.

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Life insurance persistency good in first year, not in the long term

Life insurance companies are witnessing healthy growth in persistency in short period of one-year however, that is not the case in long term. As per data on persistency for the financial year 2011-12, insurers registered an average of 64.4 per cent policies renewed in second year, it was 64.3 per cent in last year. However, the average persistency ratio for fifth year was 46.5 per cent, which was 48 per cent in previous year.

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Insurance companies move to fill pension products slot

To fill the void of pension products, life insurance companies are pitching monthly income plans and traditional whole life products as retirement solutions. Companies are seeing huge demand for monthly income plans since the past few months. And, till there are proper pension plans, the industry expects the demand for MIPs to rise consistently.

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ICICI Prudential Life Insurance’s premium collection rises 7% in Apr-Oct

Bucking the industry trend, ICICI Prudential Life Insurance has reported 7 per cent increase in premium collection in the April-October period. ICICI Prudential premium collection, which is a reflection on the performance of the company, has gone up to Rs 2,365 crore during the April-October 2012, as compared to Rs 2,210 crore in the corresponding period last year.

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Insurance news: Every five minutes an online term plan is bought in India

Despite a slowdown in the life insurance sector, sales of online term plans are booming. Nearly 55,750 term policies were sold in the past six months, an average of one policy in every five minutes. Whereas in 2011-12, nearly 49,500 plans were sold.

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