Among the private insurers, five of the 23 have reported growth.
Life insurers, which have seen their first-year premiums contract 18.6 per cent in the first quarter of the financial year 2020-21 (FY21), could see recovery in the next quarter, said CARE Ratings.
Life insurers also saw the sum assured decline 12.9 per cent from Rs 10 trillion in Q1FY20 to Rs 8.8 trillion in Q1FY21. However, despite a sharp dip in premiums, experts believe the industry is recovering from the initial shocks of the lockdown
as June was better compared to May and April.
CARE Ratings, in a note, said growth could potentially return in Q2 or Q3 and distribution channels could see significant realignment, with digital sales rising at the cost of individual agents and bancassurance.
Life Insurance Corporation, the country’s largest life insurer, has 74 per cent market share, against private insurers’ 26 per cent, notwithstanding the technological deficiencies it has against its counterparts in the private sector.
Among the private insurers, five of the 23 have reported growth. SBI Life has the largest market share among private insurers in terms of first-year premiums, followed by HDFC Life, ICICI Prudential, Aditya Birla Sun Life, and Max Life.