Mumbai: The life insurance industry reported 2 per cent dip in premium collections to Rs 1,22,661 crore in the first half of this fiscal because of fall in new business.
Total premium collected by the life insurance industry stood at Rs 1,25,179 crore during April-September 2010-11, according to the Life Insurance Council.
"The fall in total premium is due to the drop in new business premium collection," it said.
The total new business premium for the industry has decreased 21 per cent year-on-year to Rs 49,046 crore from Rs 62,362 crore.
The decline was on account of low sales of unit-linked products, especially individual pension segment, which has fallen drastically this year to 1.2 per cent from an average of 26 per cent for the earlier two years for the same period.
"It is evident from the data that voluntary contribution from retail investors under individual pension segment has dried up," said S B Mathur, Secretary General, Life Insurance Council.
According to the council, the life insurance industry, however, has added more than 5,400 direct employees and 26,000 new agents as compared to last quarter.
Overall, the outlook for the remaining six months this fiscal appears to be better in view of lack luster performance of the industry in the first half.
However, companies need to introduce new products at regular intervals to sustain the interest of the consumers, the council said.