An evolution from a retail to a personal insurance market


The insurance business maintained robust growth momentum in Gregorian calendar month 2021, with premiums as a proportion of retail receipts increasing by 21.2% year-on-year within the month, speed by a year slightly compared to the twenty-sixth growth from Gregorian calendar month.

Much of this will be attributed to the weak LIC annualized RWRP growth of vi.2% through Dec. twenty-one compared with the twenty-second growth on the Gregorian calendar month.

Private players maintain growth

Maintaining robust momentum, RWRP for personal insurers exaggerated by 29.4% YoY in Dec`21, resulting in YTD FY22 RWRP growth of half-hour.

On a two-year basis, the personal sector delivered 10.6 CAGR, whereas LIC`s RWRP declined at three CAGR. Growth driven by exaggerated price tag size is mirrored within the shift of product combined toward unit-linked insurance plans (Ulips) and nonpar merchandise.

These factors corroborate the long-term trend of a gradual shift of the retail life insurance market to giant personal players with a robust complete and honest bancassurance network.

SBI Life saw a two-year CAGR of eleven.6% in RWRP, more than ten.6% for the personal sector. With all its distribution engines firing and it being comparatively immune from the insurance worth hikes in protection, SBI Life is well-positioned to deliver robust, profitable growth over the approaching years.

HDFC Life`s two-year RWRP CAGR stood at fourteen.6%, higher than the personal sector average. The comparatively slow growth of soap Life in H1FY22 has been a rationalization for worry amid Bajaj Life continued to report robust growth post its tie-up with Axis Bank.

Private life insurers` market share consolidate

The top four personal players` share of private RWRP remained stable at sixty-two from a year agone.

For the best eight players (Top four + Tata AIA Life, Bajaj Allianz Life, Birla Sun Life, and Kotak Mahindra Life Insurance), the personal RWRP market share is steady at eighty-three, despite the slow growth of Kotak Mahindra Life and a few accelerators for little bank insurers.

Overall, the trend of consolidating market share for larger personal life insurers continues.

LIC has an issue in the retail phase

After ill on Gregorian calendar month twenty-one, LIC’s retail growth as of Gregorian calendar month twenty-one caught up and was considered not up to that of the personal sector. This continuing poor growth of LIC has caused LIC to often lose market share inside the retail sector.

With the business model unchanged for many years, LIC may lose its dominant position within the life retail phase, particularly the dear price tag phase.

With the bank channel more and more turning into necessary for savings product distribution and digital channels turning into necessary for retail protection, LIC might witness turbulent times in terms of growth thanks to its significant reliance on the agencyled distribution combine.

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