Overview of Life Insurance Companies in India

Life Insurance Industry is amongst the fastest growing sectors in India. There are total of 24 Life Insurance Companies in India offering customized life insurance products. With the liberalization in the insurance sector since 2000, it has become feasible for private players to enter in the market with FDI allowed up to 26% earlier. But with the recent enactment of Insurance Laws (Amendment) Act 2015, the cap for FDI has been raised from 26% to 49% for boosting the insurance sector in India.

 

In the life insurance business, India is ranked 10th among the 88 countries. India’s share in the global life insurance market was 2.36% for the financial year 2016-17. The latest life insurance penetration stood at 2.72% and the level of life insurance density was USD 46.50. During 2016-17, the life insurance business registered a growth rate of 8%  in India (inflation adjusted). Among the life insurance companies, Life Insurance Corporation (LIC) is the single public sector company in India. For the financial year 2016-17, LIC is the market leader holding 71.81% market share, whereas the private life insurers stood at a market share of 28.19%.

 

Life insurers issued 264.56 lakh new policies recorded in the financial year 2016-17. LIC issued 201.32 lakh policies and the private life insurers issued 63.24 lakh policies. The total capital of the life insurers as on 31st March, 2017 was Rs 26,956.94 crore. An additional capital of Rs 265.48 crore was brought in by the private life insurers. With a growth of 14.04% in their premium income, the life insurance industry recorded a premium income of Rs 418476.62 crore during 2016-17. LIC recorded 12.78% growth, while private sector insurers recorded 17.40% growth in their premium income. First year premium registered a growth of 26.26% over the previous year and recorded the premium income of Rs 1,75,202.68 crore. During the financial year 2016-17, the life insurance industry reported a profit after tax of Rs 7,727.89 crore.

Source: IRDAI Annual Report 2016-17