Life insurers expect sluggish growth in next 3 quarters

Lacklustre returns due to volatile conditions in the equity markets coupled with regulatory changes relating to ULIPs (unit-liked insurance plans) and pension plans have affected the life insurance industry in the country. According to recent IRDA data, first-year premium collections by life insurance companies fell 28.36 per cent in April-June 2011, compared to the corresponding period last year. The 23 life insurers collected Rs 18,283 crore by underwriting new policies, compared with Rs 25,522 crore mobilised in the year-ago period. Experts feel that this trend will continue with industry growth remaining slow to moderate in the next 2-3 quarters

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