Growth targets set by insurance regulator A

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The Insurance Regulatory and Development Authority (IRDAI) recently set growth targets for life insurance as well as general insurance companies. IRDAI aims to increase general insurance penetration in India to 2.5% by FY 2026-27 from the current 1%.

Insurance penetration is the ratio of the top premium to gross domestic product (GDP) and here the insurance regulator wants to raise the premium collected by the general insurance sector from Rs 2.2 lakh crore up to at Rs 11.7 lakh crore.

Speaking to CNBC-TV18, Raj Kumar, Managing Director of Life Insurance Corporation of India said, “The targets, which are given, seem a bit rigid, but now we are going to work in that direction to put all these strategies into square. to try to achieve these goals.

Growth targets set by insurance regulator A

Life insurance penetration in the country is only 3.2%, which is relatively low even by the standards of many Asian countries. Thus, the scope for growth is immense.

In the first quarter, LIC had a very high premium from funded plans. “In funded plans, margins are a bit lower than other businesses that have impacted margins,” Kumar said.

Growth targets set by insurance regulator A

Annual bonus equivalent (APE) increased by 28% year-on-year (YoY) and assets under management (AUM) also increased by around 7%.

“We plan to increase our non-participating business in the future and we are also working on the non-single premium. Both of these will contribute to the APE,” Ku said.

The company is sticking to its new business value (NBV) margin forecast of 20-25% by 2027, although this quarter saw a decline to 13.6% from 15% in the previous quarter. ‘EX22.

Growth targets set by insurance regulator A

“Non-peer products are not new to LIC. Our teams are aware of this. Strategically, we will put more emphasis on the non-peer side…We expect more than 100% growth on the non-peer side,” he said.

For the full interview, watch the attached video


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