Insurance sector expects total premium of Rs255,000 crore for FY10

Mumbai: The insurance sector is expected to grow by 15 per cent during the current financial year, with total premium income (new business plus renewals) expected to touch Rs255,000 crore for the financial year ending March 2010, up from Rs221,688 in 2009.

The insurance segment has 22 life insurance providers including public sector Life Insurance Corporation (LIC).

According to S B Mathur, secretary general, Life Insurance Council, the industry recorded a growth of over 18 per cent for the six months period ended 30 September 2009, collecting total premium of Rs101,976 crore as against Rs.86,571 crore during the corresponding period last year.

According to the Life Insurance Council's data, the industry body for all the life insurance companies in India, total renewal premiums for regular unit linked insurance plans (ULIPs) witnessed a growth of 40 per cent year-on-year to Rs25,950 crore as compared to Rs18,506 crore in the same period last year.

In contrast, non-linked renewal premium rose to just Rs37,041 crore, from Rs 33,536 crore from the previous year, while total non-linked premiums rose by 24 per cent to Rs57,314 crore, up from Rs.46,160 crore from last year.

New business premium increased by 13 per cent to Rs38,985 crore from Rs34,529 crore.