The life insurance industry is experiencing significant growth across all segments, marking a positive trend for the sector.
Increase in New Business Premium
In May 2024, the industry witnessed a notable increase of 15.5 percent in the new business premium compared to the previous year.
The country’s leading insurance provider, Life Insurance Corporation (LIC), emerged as the top recipient of premiums during this period.
Surge in Policies Issued
The number of policies issued by insurance companies saw a substantial rise of 12.45 percent, reaching a total of 19 lakhs in May 2024, up from approximately 17 lakhs in May 2023.
Premium Growth Overview
The premium collection for the life insurance industry saw a substantial surge, reaching a total of Rs 27,034.2 crore in May 2024, compared to Rs 23,477.8 crore in the same period last year.
LIC’s Dominance in Premium Collection
LIC experienced a robust growth in premiums, witnessing an 18.7 percent increase to Rs 16,690 crore in May 2024, compared to Rs 14,056.3 crore in May 2023.
Private Companies’ Performance
Private insurance companies also demonstrated notable growth, with their first-year premium increasing by 9.8 percent to Rs 10,343.8 crore in May 2024, compared to Rs 9,421.51 crore in May 2023.
Growth in Group Premium
The group premium segment of the life insurance industry experienced rapid growth, with a year-on-year increase of 13.14 percent in May 2024, reaching Rs 16,766.71 crore.
LIC’s Contribution to Group Premium
LIC’s group premium products witnessed a significant surge of 20.9 percent, reaching Rs 12,632.26 crore in May 2024, compared to Rs 10,448.74 crore in May 2023.
Individual Premium Expansion
The individual premium segment also saw remarkable growth, increasing by 18.6 percent to Rs 10,267.4 crore in May 2024, with private companies dominating this segment.
Private Companies’ Individual Premium Share
Private insurers recorded a substantial increase in individual premiums, reaching Rs 6,209.3 crore in May 2024, reflecting a 23 percent jump from May 2023’s Rs 5,051.29 crore.
Performance Highlights of Private Companies
While SBI Life Insurance experienced a slight decrease in new business premium, HDFC Life Insurance, ICICI Prudential, and Max Life Insurance showcased notable growth during this period.
