Now, future outlook is brighter" SB Mathur Secretary general, Life Insurance Council
BOOMING economy, prosperity and assurance of stable future seems to be making people investment in financial products such as insurance.The trend is visible in the latest insurance data put out by the Insurance Regulatory and Development Authority (Irda). It shows that though the aggregate premium collected by the life insurance companies has gone up, the number of policies issued by life insurance companies has gone down over the corresponding period in the previous year.
This means that the average ticket size or money invested in life insurance has gone up compared with the previous year. Industry official said this has been a departure from trend over past 2-3 years as premium collections by insurers was going down while the number of policy issued increased.
The number of policies sold by life insurers has fallen from 3,82,03,056 in January 2010 to 3,50,31,875 in January 2011. However, the premium collected has increased from Rs 55,954 crore in January 2010 to Rs 64,505 crore in January 2011.
Insurance experts say the average ticket size of a policy has gone up since people are no longer worried about uncertain future. They do not want to keep more cash in hand and are comfortable with locking their money in long term insurance products.
SB Mathur, secretary general, Life Insurance Council, said, "Investors have regained their confi dence. Unlike in 2009-2008 when sentiments were low, people were deferring their investment decisions. Now, future outlook is brighter.
