The life insurance sector saw a 6.3 per cent drop in new business premiums for the financial year 2013, according to data from the Insurance Regulatory and Development Authority (Irda).
Life insurers collected new premiums of Rs 1,07,011 crore in financial year 2013, compared to Rs 1,14,233 crore collected in the previous financial year.
Life Insurance Corporation of India (LIC), the country's largest insurer, saw a 6.4 per cent drop in new premiums in the 12-month period and collected total premiums of Rs 76,246 crore.
Private life insurers collected new business premiums worth Rs 30,765.03 crore, a decline of 5.9 per cent.
The drop in new business premiums is mainly due to the slowdown in economy, resulting in lower disposable income. With this, the number of policies purchased has also come down.
However, with the change in regulatory guidelines and expectations of higher economic growth, insurers believe they would be able to achieve better numbers in new business premiums in the current financial year.