More women putting a premium on their life

HYDERABAD: In a boost to the life insurance sector in the country, the number of women buyers, who constitute 48% of the total population, is steadily rising. According to the latest Insurance Regulatory and Development Authority of India (IRDAI) annual report, the share of women has increased to 36% in the number of policies and 37% in the first-year premium (FYP) in FY2018-19 as compared to 32% on both the counts in FY2017-18.

The total number of life insurance policies sold in 2018-19 stood at 2.86 crore with an FYP of Rs 97,690 crore. Of the total number of policies sold, women accounted for 1.03 crore policies in FY2018-19 (90 lakh in previous fiscal) with an FYP of Rs 36,525 crore in FY2018-19 (Rs 29,801 crore). Of the total policies bought by women, over a third came from three states — West Bengal (16.51%), Uttar Pradesh (10.53%) and Maharashtra (10.16%). Similarly, of the total FYP of Rs 36,525 crore, over one-third came from Maharashtra (15.74%), West Bengal (10.05%) and Uttar Pradesh (9.55%).

Commenting on the trend, Anil Kumar Singh, chief actuarial officer, Aditya Birla Sun Life Insurance, said, “This is a true reflection of the increasing financial awareness and independence of women in India. We, like many other life insurance companies, are also witnessing more women purchasing life insurance. Interestingly, the participation of women from tier-3 and -2 towns is higher than women from tier-1.”

He said it is important to understand that life insurance needs of women are very different from their male counterparts and, therefore, the need of the hour is to understand requirements of the specific life stages of women and come up with tailor-made products to meet their unique protection requirements.

Bajaj Allianz Life Insurance Company MD & CEO Tarun Chugh said the participation of women in India’s workforce is increasing year-on-year. The trend of women opting for life insurance is indicative of the data that women are now more aware of their contribution to their family’s finances and are looking at life insurance solutions to secure their family’s life goals Star Health and Allied Insurance Company MD S Prakash pointed out that the industry must work with the regulator to come up with women-related health insurance data as it will help players gain a deeper insight into this segment.

According to the report, the proportion of policies sold to women by private sector life insurance players stood at 27% and that of LIC was at 39%.

Source: The Times of India