Life insurance companies in India reported a robust 61.23% year-on-year increase in new business premium for April to ₹20,258.86 crore.
The solid start to FY2025 is in sharp contrast to the muted April 2023 opening when the new business premium (NBP) underwritten by the life insurers slid as much as 30% to ₹12,565.31 crore.
Demand for enhanced insurance protection, particularly from corporate consumers fuelled the April 2024 collections, the Life Insurance Council said, releasing the industry business figures on Thursday.
Group single premium collections rose 126.33% while policies and schemes for the same category were 60.42% higher. Individual single premium policies grew by 19.05% while non single premium policies grew by 10.31%, the Council said.
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Group single premium collections were also behind market leader Life Insurance Corporation of India (LIC) clocking 113.14% increase in NBP to ₹12,383.64 crore (₹5,810.10 crore). The Group single premium of the State-owned life insurer increased 211.08% to ₹9,020.22 crore (₹2,899.63 crore).
The NBP of private insurers was 16.58% more in April at ₹7,875.22 crore (₹6,755.21 crore). This is despite six of the 26 private life insurers reporting a decline in NBP for the month. Group single premium of the private insurers increased 18.39% to ₹2,695.21 (₹2,276.61 crore).
The April numbers come on the back of an almost 16% increase in NBP of the life insurers during March to ₹60,213.62 crore (₹52,081.12 crore). For 2023-24, the companies had reported 2% year-on-year increase in NBP to ₹3,77,960.34 crore, a pace of growth slower than the 18% increase to ₹3,70,543 crore in the previous fiscal.
In a release on April 2024 numbers, the Council said 49,205 life insurance agents were added to the fold within the first month of the financial year, indicating the growing popularity of the insurance sector as a career option. The increase was being complemented by the rapid pace of digitalisation being undertaken by life insurers which should further aid in the growth of the sector as well as in deepening penetration of life insurance across the country, it said.
