Life Insurers New Business Premiums Grow 15.6% In FY24: Life Insurance Council
The Indian life insurers industry reported a 15.6 per cent year-on-year (YoY) increase in new business premiums (NBP) in the month of March 2024, with the cumulative figure for FY24 coming in at 2 per cent higher than what was achieved in the previous financial year, highlighted data released by Life Insurance Council, a forum to coordinate discussions between all stakeholders in the Indian life insurance industry.
The new business premium underwritten by Indian life insurers has been growing steadily, achieving a 12 per cent compounded annual growth rate (CAGR) between 2014 and 2023.
The NBP of Indian life insurers came in at Rs 3,77,960 crores for the year ending March 2024, supporting life insurers new business premium collections that stood at a record high of Rs 3,70,543 crores for the same period the previous year.
According to data released by Life Insurance Council, the life insurance industry saw its NBP collection coming in at Rs 60,213 crores in March 2024, there is 41.5 per cent growth in group premiums, with a similar increase in group single premiums being the biggest contributing factor to the rise in new business premium.
Considering the fact that group premiums contribute nearly 60 per cent of the overall NBP, life insurers have also been focusing on encouraging first-time life insurance buyers, resulting in a 3.69 per cent growth in individual premium collections for FY24.
The life insurance industry in India has been powering ahead by improving insurance access and reaching out to the uninsured section of the country’s population.
This is reflected in the strong growth in individual life insurance agents, with Indian life insurers adding 2,76,850 agents in FY24 alone.
This increase is being complemented by the rapid pace of digitalisation being undertaken by life insurers, auguring well for further increases in insurance penetration that should bolster new business premiums in FY25 and beyond.
