The life insurance business picked up in the first half of the current fiscal with new business growing 6.5% in the first half of FY14. This is the first time in last three years the life insurance business has shown positive growth over six monthly period.
Data from the regulator’s website showed the first year premium underwritten by life insurers increased to R50,056.56 crore between April-September 2013 from R46,962.81 crore in the same period previous year.
IDBI Federal Life Insurance expects the growth in the industry to continue in the range of 6-10% for the rest of the year and says further clarity from the regulator will drive growth. “A lot of the regulatory changes are now behind us and companies need to stabalise now. There also needs to be more clarity from the income tax department’s direct tax code on how insurance products are packaged which should help growth,” said Aneesh Srivastava, chief investment officer at IDBI Federal Life Insurance.