A Comparative Evaluation of Life Insurance Premium Underwritten by Selected Private Sector Life Insurance Companies in India

Abstract

The present study attempts to compare and analyze the growth of various premiums underwritten by selected private sector life insurance companies from 2017-18 to 2021-22. The present study is of an analytical nature and based on secondary data gathered from Annual Reports of IRDA of different years. The study shows that in the case of growth of linked first year premium, the ICICI has shown negative growth for three years continuously, i.e. from 2018-19 to 2020-21 and in the year 2020-21, both HDFC and SBI have shown negative growth and overall all the three selected companies are showing fluctuating trends. Whereas in the case of Non-Linked First Year Premium HDFC, ICICI and SBI have shown the highest growth, 182, 232 and 233, respectively, in the year 2020-21, which shoes that people shown more interest in insurance during post covid-19 period. In the case of growth of linked first year premium, the HDFC has shown a negative growth of -5.05 percent in 2020-21, and ICICI has shown a negative growth of -36 percent in the year 2021-22. Whereas in the case of Non-Linked Single Year Premium, all three selected companies have shown negative growth in the year 2021-22. In the case of Linked Renewal Premium, all three companies have followed a downward trend and HDFC, ICICI and SBI have shown zero percent, -12 percent and 10.86 percent growth in the year 2021-22. In the case of Total Linked Renewal premium, ICICI has underwritten the highest amount, followed by ICICI and HDFC during the period under study. Considering Non-Linked Renewal Premium, all three companies have shown lowest growth in 2019-20.  The results of ANOVA statistics shows that there is no significant difference in the mean value of Linked and Non-Linked first Year and Linked Single year  Premiums Underwritten by HDFC, ICICI and SBI, whereas there is a significant difference in the mean value of Linked Single year, Linked and Non Linked Renewal Premiums  Underwritten by HDFC, ICICI and SBI.