While, life insurance giant LIC charges ahead clocking a whopping 44% growth in premium collections, private insurers continue their downward spiral. CNBC-TV18’s Avni Raja reports on how the numbers look.

Here is a verbatim transcript of her comments on CNBC-TV18. Also watch the accompanying video.

As per the IRDA data for August, LIC has mopped up almost Rs 21,000 crore as premium, which is up 44% YoY. Premium collections for private players on the other hand stood at about Rs 10,200 crore versus about Rs 12,000 crore, which is a 15% fall. It is really due to LIC’s high growth that the entire industry has witnessed a 17% growth rate YoY.

This trend has been continuing since the beginning of this fiscal where LIC's consistent performance has kept the entire industry in the green while private players have been witnessing a decline in their premium collections month after month. One main reason for this is the fall in ULIP demand because private players still depend a lot on ULIPs to contribute to their premium collections.

However, LIC has shifted focus to non-linked products and this strategy is benefitting them greatly because additional data that was released by IRDA says that ULIP premium collections have witnessed a 24% fall in the first quarter YoY while non-linked products have jumped 46% during the same period.

Source : http://www.moneycontrol.com/news/cnbc-tv18-comments/life-insurance-giants-see-dippremiums-lic-bucks-trend_417553.html