Affected drastically by COVID-19 pandemic, the life insurance sector saw an 18.6 per cent dip in the first year premium to Rs 49,335 crore in the April-June quarter of the current financial year, according to a report by CARE Ratings.
The sector had noticed their first-year premium drop of 32.6 per cent and 27.9 per cent in April 2020 and May 2020, respectively, the report revealed, further adding that the June 2020 quarter numbers are indicative that the sector is heading towards recovery.
“The life insurance sector remains to report a drop in their first-year premium collection as businesses have been seriously affected by the coronavirus ongoing pandemic. The sector also, recorded a decrease of 18.6 per cent in the first-year premium to Rs 49,335 crore in Q1FY21 from Rs 60,637 crore in Q1FY20,” it said.
Attributing the slump in business in the first quarter of the current fiscal to lockdown and business disruption, the report said, “Growth could return in the second or third quarter of 2020-21. Distribution channels could observe notable realignment, with digital rising at the cost of individual agents”.