BAL gained 150 basis points, ICICI Prudential 90 basis points (bps) and HDFC Life gained 80 bps in terms of total sum assured during last fiscal while Max Life and SBI Life witnessed a decline of 150bps and 50 bps respectively. One basis point is 0.01 percentage point.
“For individual sum assured, amongst large insurers, Tata AIA and SBI Life outperformed their private peers as their market share improved 380bps/70bps YoY to 14.2%/7.5%. HDFC Life/IPRU Life/BALIC reported market share loss of 80/210/80bps in FY22,” said ICICI Securities in a report. Tata AIA is the market leader in overall individual sum assured.
Overall private sector life insurers clocked an 11% year-on-year growth in their total annualised premium equivalent (APE) in March 2022, translating into 21% growth in the fiscal ended March 2022. Their sum assured grew 17% YoY in FY22 led by sharp increase in group sum assured (24% YoY) vs individual sum assured (3% YoY). APE is the sum of the regular annualized premium from the new business plus 10% of the first single premium in a given period. It is a common measure of ascertaining the business sales in the life insurance industry.
Number of policies grew 3% year-on-year in FY22 for private life insurers with SBI Life reporting highest growth of 16%. “Individual APE, which was ₹45,200 crore in FY21, jumped to ₹55,000 crore in FY22,” ICICI Securities said. In FY22, private insurers’ total APE grew 21% led by BAL (52%) and Tata AIA (32%).
Growth in overall sum assured was driven by group segment. Lower growth of individual sum assured was due to a combination of factors.
