Life Insurance industry posts 15.67 per cent growth in new business premiums at ₹2.42 lakh crore

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Life Insurance industry has recorded a 15.67 per cent increase in new business premium during April-November 2024 at ₹2,41, 868 crore (₹2,11,691 crore in 2023), latest data from Life Insurance Council showed.

While insurance behemoth Life Insurance Corporation’s (LIC) new business premium grew 16.08 per cent to ₹1,44,432 crore (₹1,24,424 in 2023), the private insurance players registered a 15.09 per cent increase in new business premium for the same period to ₹1,00,436 crore (₹87,266 crore in 2023).

This indicates a strong underlying demand for insurance products as consumers and corporate clients seek enhanced protection.

This positive trend underscores the resilience and ongoing expansion of the life insurance industry, even as it navigates various market challenges, say industry observers. 

According to data released by the Life Insurance Council, the life insurance industry saw individual single premiums growing by 10.44 per cent on a y-o-y basis to close at ₹3669 crore for November 2024 while YTD growth stood at 13.7 per cent.

Individual non-single premiums came in at ₹8,153 crore  and grew by 6.46 per cent in November 2024, even as YTD collections settled at 16.63 per cent higher than the corresponding period last year. This powerful performance can be ascribed to the fact that life insurers are increasingly focusing on encouraging first-time life insurance buyers to buy essential life insurance solutions, contributing to the 7.66 per cent growth in combined individual premium collections for the month of Nov’24 and 15.68 per cent growth on a YTD basis. In the Group policy segment, new policy issuances expanded by 2.31 per cent on a y-o-y basis.

The life insurance industry in India has been making significant strides forward by expanding access to insurance and an effort to reach out to areas and segments of the country’s population that were previously underserved when it comes to their insurance needs. Towards this end, life insurers added more than 6,54,682 individual life insurance agents, with an overall 2.63 per cent growth in cumulative agent count. Still, the sustained pace of agent addition is being complimented by the high speed of digitisation by life insurers, paving the way for additional gains in insurance penetration that should provide a significant boost to new business premiums in FY25 and beyond, according to Life Insurance Council.