Life insurers' new business premium income dips.

Friday 30, September, 2011 New business premium income for life insurance companies fell 23% during the April-August 2011 compared with the same period last year mainly due to the base effect The fall in collection is on account of the base effect after insurers last year tried to meet annual targets ahead of change in norms since the new guidelines came into effect from September 2010. Pension, which contributed to almost 36% of the income, has come down to 17%. Also, products such as universal life policies were redesigned as variable insurance policies. From September, the insurance regulator had imposed norms such as cap on various charges like premium allocation, policy administration and fund management on unit-linked insurance products.

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