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Business News/ Money / Personal Finance/  Number of life insurance policies bought by women shrinks 12% in 2019-20
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Number of life insurance policies bought by women shrinks 12% in 2019-20

Overall, new individual policies issued by life insurers stood at 2.88 crore for 2019-20, registering a marginal rise of 0.69% over 2.86 crore policies sold in the previous year

Women wearing protective face mask commute in a suburban train after authorities resumed the train services for women passengers during non-peak hours, amidst the coronavirus disease (COVID-19) outbreak, in Mumbai, India, October 21, 2020. (REUTERS)Premium
Women wearing protective face mask commute in a suburban train after authorities resumed the train services for women passengers during non-peak hours, amidst the coronavirus disease (COVID-19) outbreak, in Mumbai, India, October 21, 2020. (REUTERS)

Rising awareness for insurance in the country over the past few years notwithstanding, the number of life plans bought by women during the financial year 2019-20 dropped 11.76% year-on-year, analysis of the data provided by Irdai in its annual report showed.

Overall, new individual policies issued by life insurers stood at 2.88 crore for 2019-20, registering a marginal rise of 0.69% over 2.86 crore policies sold in the previous year.

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The Insurance Regulatory Development Authority of India (Irdai), in its report released on Tuesday, said the share of women in the number of policies sold dipped to 32% against 36% in the previous year. The data showed that women bought 92.16 lakh life policies during 2019-2020 against 103 lakh in 2018-2019, logging a fall of 11.76%.

Moreover, the proportion of women's policies in the case of private life insurers was at 27% and that of the public sector Life Insurance Corporation of India (LIC) was 34%.

“Women comprise roughly 49% of the total population in India. Their contribution to the economic activity of the country is significant and is increasing every year. In this context, a brief analysis was made on the share of women in the life insurance business. Only number of policies and first-year premium of individual new business for the year 2019-20 have been considered for the purpose," the regulator said in the report.

The contribution of women towards individual first-year premium fell to 34% in 2019-20 from 37% in the previous year, while overall first-year premium of life insurance companies surged 39.71% to 1.02 lakh crore during the year.

Out of the total policies bought by women, nearly one-third of demand came from three states — Maharashtra (11.98%), West Bengal (10.60%) and Uttar Pradesh (9.87%). Similarly, out of 34,737 crore first-year premium contributed by women, more than one-third come from three states — Maharashtra (17.05%), West Bengal (9.66%) and Uttar Pradesh (8.66%).

Kerala (43%), Andhra Pradesh (40%) and Mizoram 40, were the top three states or union territories with the highest share in the number of policies bought by women, while Diu, Daman Dadar & Nagar Haveli, Ladakh and Haryana, were the bottom three.

In terms of private life insurance companies, IDBI Federal Life Co. and Max Life Insurance Co. had the highest percentage of women agents, at 45% respectively, followed by Star Union Diachi Life Insurance Co. and Tata AIA Life Insurance Co. at 37%, respectively.

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ABOUT THE AUTHOR
Abhinav Kaul
Abhinav Kaul writes on cryptocurrencies and mutual funds at Mint. His previous stints include ETMarkets, Reuters Bangalore and Press Trust of India.
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Published: 11 Feb 2021, 06:07 PM IST
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