During 2022-23, the life insurance industry recorded premium income of Rs 7.83 lakh crore registering 12.98 per cent growth
De-growth of 2.21 per cent in the number of new policies issued
Benefits paid on account of surrenders /withdrawals increased by 25.62 per cent to 1.98 lakh crore in 2022-23 of which LIC accounted for 56.27 per cent
Hyderabad/Mumbai:
Even as Indian life insurance industry, with a total premium of around Rs 8 trillion, has seen its profitability zooming by almost 500 per cent in FY202-23, the industry’s claim settlement ratio decreased to 98.45 per cent in 2022-23 from 98.64 per cent in 2021-22.
The claim settlement ratio of state owned Life Insurance Corporation(LIC) was 98.52 per cent in FY 23 as compared to 98.74 per cent in FY22. The claim settlement ratio of private insurers was 98.02 per cent during FY 2022-23 compared to 98.11 per cent during the previous year, said Irdai in its annual report for FY2022-23.
The number of claims repudiated by life insurers was 10,822 for an amount of Rs1,026 crore and the number of claims rejected was 4,340 for an amount of Rs 24 crore. The claims pending at the end of the year were 833 for Rs 350 crore.
During 2022-23, the life insurance industry recorded premium income of Rs 7.83 lakh crore registering 12.98 per cent growth. The private sector life insurers have clocked a growth of 16.34 per cent in premium, while LIC recorded 10.90 per cent growth in premium.
Profits of life insurance industry grew by 452 per cent in 2022-23 with profit after tax (PAT) Rs 42,788 crore as against 7,751 crore in 2021-22. Out of the 24 life insurers in operation during FY 2022-23, 17 companies reported profits.
LIC reported increase in profits by 800 per cent while private insurers together reported an increase in profit by 72.36 per cent in 2022-23.
The dividend paid by private life insurers stood at Rs 925.88 crore for FY2022-23. LIC has paid Rs 948.75 crore in dividend to its shareholders for the year FY 2022-23.
The life insurance industry paid total benefits of 4.96 lakh crore in 2022-23 which constitutes 64.08 per cent of the net premium. The benefits paid on account of surrenders /withdrawals increased by 25.62 per cent to 1.98 lakh crore in 2022-23 of which LIC accounted for 56.27 per cent.
During the year, out of the total surrender benefits, benefits for policies accounted for 62.51 per ULIP cent for private insurers and 1.56 per cent for LIC .
In case of individual life insurance business, during the year 2022-23, out of the 10.76 lakh total death claims, the life insurance companies paid 10.60 lakh death claims, with a total benefit amount of 28,611 crore.
Renewal premium in the Indian life insurance industry continues to contribute majority of total premium underwritten by life insurers in 2022-23 at 52.56 per cent. The balance 47.44 per cent is contributed by the new business premium.
However, the growth in new business premium was higher at 17.90 per cent compared to renewal business at 8.88 per cent. Single premium products continue to play a major role for public sector with a contribution of 40.65 per cent of its total premium while it was 22.20 per cent for private life insurers.
Traditional products contributed 6.77 lakh crore, constituting 86.59 per cent of total premium and the share of s stood at 13.41 ULIP per cent.
The business from traditional products grew by 14.40 per cent and the same for Unit linked products is 4.61 per cent.
Life insurance segment constitutes 77 per cent of total life insurance premium followed by pension and annuity segments together about 23 per cent
During 2022-23, life insurers issued 284.70 lakh new policies under individual business, out of which LIC issued 204.29 lakh policies (71.75 per cent) and the private life insurers issued 80.42 lakh policies (28.25 per cent).
The private sector insurers registered a growth of 8.76 per cent, while LIC registered a de-growth of 5.94 per cent and the industry registered a de-growth of 2.21 per cent in the number of new policies issued against the previous year.
During the year 2022-23, out of 24 life insurers, 18 were compliant with the expenses of management of regulations, six life insurers had exceeded the limits of expenses on an overall basis or segmental basis and their request for forbearance is under examination.
The life insurance industry reported gross expenses of management of Rs1.31 lakh crore during 2022-23 which was 16.88 per cent of total gross premium.
IRDAI (Expenses of Management of Insurers transacting life insurance business) Regulations, 2016 prescribe the allowable limits of expenses of management taking into account, inter alia the type and nature of product, premium paying term and duration of insurance business.
Investment income (Policyholder’s and Shareholder’s) including capital gains and other income of life insurance industry declined by 6.63 per cent to 3.89 lakh crore as on 31 March While LIC recorded 7.25 per cent growth, private sector insurers
experienced 39.86 per cent decline in investment income in the year 2022-23.