Flat growth for life insurance ind in FY21
The life insurance industry’s growth in the current fiscal is likely to stay flat amid sharp traction seen in the protection business and Rs 5 lakh income tax exemption
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Kolkata: The life insurance industry's growth in the current fiscal is likely to stay flat amid sharp traction seen in the protection business and Rs 5 lakh income tax exemption will have a short term negative impact, a top life insurance official said on Wednesday.
In the private sector players, the additional premium income saw a de-growth of four per cent in the first half of the fiscal while some companies attained healthy growth. Companies that could offer complete digital onboarding and servicing platforms immediately grew, he said.
"This has been an unprecedented year. The industry is likely to remain flattish. However, we will stay ahead of the industry. In the first half our additional premium had grown by 16 per cent," Kotak Mahindra Life Insurance MD & CEO G Murlidhar said.
The company was keeping its fingers crossed despite the last quarter (January-March) is typically best for insurance firms for their tax planning. However, companies remain unsure about this year's behaviour after the government had allowed complete tax exemption for up to Rs 5 lakh income.
