Why life insurance premium grew in FY21
Apr 30, 02:04

Due to the economic slowdown caused by COVID-19, the first year premium (FYP) collected by life insurance companies in India went up, mainly on the back of increased sales of single premium products. FYP reported 7.5 percent growth to Rs 2.78 lakh crore in FY21 from Rs 2.59 lakh crore in FY20. Insurance buyers preferred single premium products—most of these come with an investment component—in an uncertain environment. Single premium products registered growth of 26.1 percent compared to contraction of 19.9 percent in non-single FYP. Increase in awareness and digitisation of insurance products also led to this growth. Life insurance industry had reported a 20.6 percent growth in FY20 over FY19.

First year premium year-wise-mc mini1