Life insurance industry hit by slowdown, says minister

Life insurance industry hit by slowdown, says minister

New Delhi: Slowdown in the economy has trimmed growth in premium income of Indian insurers in FY09, Union minister of state for finance Namo Narain Meena said in a written reply to Parliament on Friday.

The minister said the total premium income of market leader Life Insurance Corp grew 4.45% to Rs1.56 trillion in FY09, lower than the 17.19% expansion seen in 2007-08.

The overall premium income of all the life insurers stood at Rs2.24 trillion at the end of FY09, compared with Rs2.01 trillion in the previous year.

“In the year 2008-09, the pace of growth in the insurance sector has slowed down which may be a result of the economic slowdown during the period," Meena said.

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