Life insurers report 22% growth in new premium in August

Data shared by Life Insurance Council showed that the country’s largest life insurer LIC reported a 35.10 percent surge in its new business premium for August to Rs 19,309.10 crore compared to Rs 14,292.53 crore in August 2023. Similarly, LIC’s new business premium collection for the first five months of FY25 rose by 27.73 percent to
Rs 95,180.63 crore, up from Rs 74,516.31 crore in the same period last year. LIC’s new business premium was driven mostly by group single premiums. The state-owned insurance is the market leader in the segment, with nearly 80 per cent market share. LIC’s group single premiums have grown by 46 per cent to Rs 13,599 crore in August.

On the other hand, private sector life insurance companies' new business premium grew 6.7 per cent Rs 13,335 crore supported by growth in the individual non-single premiums.

New business premium during the April to August 2024 for the industry grew 20.78 per cent for the industry to Rs 1.54 lakh crore. Despite the underlying demand for enhanced insurance protection, from both individual consumers and corporate clients alike, new policy issuances decreased by 1.44 per cent to 23.94 lakh policies in August 2024 as compared with 24.28 lakh policies sold in the same corresponding period last year. The life insurance industry saw individual single premiums growing by 8.35 per cent on a Y-o-Y basis to close at Rs 4,302.58 crore for August’24 while YTD growth stood at 15.54 per cent. Individual non-single premiums came in at Rs 9160.08 crore and grew by 10.38 per cent in August’24, even as YTD collections settled at 17.25 per cent higher than the corresponding period last year.