While there has been a marginal decline in the number of policies sold by life insurers during the first seven months of the current fiscal, the average ticket size has increased substantially.
Latest figures from the Insurance Regulatory Authority of India (Irda) reveal that average ticket size of regular premium policies for LIC increased 24.5% to R10,237 during April-October, 2012, from R8,217 in the year-ago period.
The average ticket size for regular premium policies for private life insurers rose 19.6% to Rs 23,295 in the period under review from R19,628 in the year-ago period.
In terms of the average ticket size for regular premium, the private industry average is around R26,000 for October 2012, with HDFC Standard Life leading the chart with ATS of R38,593. For other players like ICICI Prudential, SBI Life and Max Life Insurance, the ATS is in the range of R28,000-38,000.
Meanwhile, the number of regular premium policies sold for the industry declined 1.4% to 1.81 crore during April-October 2012 from 1.83 crore in the corresponding period the previous fiscal.
In the average ticket size for single premium business, LIC showed a growth of 19% to R74,614 for April-October, 2012 from R62,671 in the year-ago period. For private life insurers, it declined 43% to R67,858 from R1,18,742.
The number of single premium policies sold for the industry during April-October 2012 came down 10% to 10,79,631 from 11,97,494 in the year-ago period.
First-year premium of all life insurers during the first seven months of the current fiscal showed a decline of 3.5% to R53,814 crore from R55,738 crore in the year-ago period. First-year premium for LIC during the period under review declined 2% to R40,070 crore from R41,259 crore.
For private insurers, first-year premium during April-October 2012 came down 5% to R13,744 crore from R14,479 crore in the year-ago period.