Volatility in stock markets is taking a charge on the sales of unit-linked insurance plans (Ulips) that account for over 80 per cent of the industry''s total sales.
The latest data released by the Insurance Regulatory and Development Authority (Irda) explain that during April and May this year, premium from the sale of new policies increased to Rs 8,119 crore compared with Rs 7,331 crore, representing an increase of 10 per cent.
In the first two months of 2007-08, the industry had registered a 25 per cent increase in the first premium income. Insurance company executives said purchasers were staying away from Ulips, which are insurance-cum-investment policies with 90-95 per cent of the corpus invested in stock markets. Premium from the sale of individual single-premium policies declined 3.2 per cent to Rs 1,508 crore as against Rs 1,559 crore in the year-ago period. In contrast, income from new individual regular-premium policies grew 8.7 per cent to Rs 4,928 crore during April-May this year.
The main reason for industry''s lower growth was a 17 per cent drop in Life Insurance Corporation''s first premium income.
The latest data released by the Insurance Regulatory and Development Authority (Irda) explain that during April and May this year, premium from the sale of new policies increased to Rs 8,119 crore compared with Rs 7,331 crore, representing an increase of 10 per cent.
In the first two months of 2007-08, the industry had registered a 25 per cent increase in the first premium income. Insurance company executives said purchasers were staying away from Ulips, which are insurance-cum-investment policies with 90-95 per cent of the corpus invested in stock markets. Premium from the sale of individual single-premium policies declined 3.2 per cent to Rs 1,508 crore as against Rs 1,559 crore in the year-ago period. In contrast, income from new individual regular-premium policies grew 8.7 per cent to Rs 4,928 crore during April-May this year.
The main reason for industry''s lower growth was a 17 per cent drop in Life Insurance Corporation''s first premium income.
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