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Pension Products Grew Strongly While ULIPs Slows Down: Emkay Report

The Group Term Insurance (GTI) segment has delivered 82 per cent YoY premium growth in FY22

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Emkay Global Financial Services has shared comprehensive details on the new business performance across product categories in the life insurance space during FY22. Even though ULIPs made a strong comeback in 9MFY22, the category witnessed slowed down materially in Q4, driving FY22 ULIP Retail Annual Premium Equivalent (APE) growth to 33 per cent.

Pension products and non-par (savings) continued to grow strongly, but Annuity and par savings struggled, reflecting LIC’s (the most dominant player in these segments) slow growth.

The strong growth in Group Term Insurance (GTI) premium (+82 per cent YoY) vs 17 per cent YoY growth in Sum Assured reflected strong price hikes in the GTI business.

Going forward, with the interest rate cycle reversing, volatile equity markets, high inflation and the return of postponed discretionary consumption will mean that middle-class household savings will be under pressure, leading to some pressure on the life insurance savings business.

Taking all non-par products into account (savings, protection, annuity and pensions), their share rose to 32 per cent in FY22 from 24 per cent in FY20.

The Group Term Insurance (GTI) segment has delivered 82 per cent YoY premium growth in FY22 against the sum assured growth of 17 per cent YoY in the same period.


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Pension Products ulips emkay global financial services