The Mumbai-based Life Insurance Council, set up as a platform to facilitate discussions among all stakeholders in the Indian life insurance industry, released its annual industry business figures today, according to a press release issued by the Life Insurance Council. The new business premium underwritten by Indian life insurers has shown steady growth, with a Compound Annual Growth Rate (CAGR) of 12 per cent between 2014 and 2023. The industry reported a 15.6 per cent YoY increase in NBP in March 2024, with the cumulative figure for FY24 surpassing the previous financial year by two per cent. The NBP of Indian life insurers reached Rs 3,77,960 crore for the year ending March 2024, surpassing the record high of Rs 3,70,543 crore achieved in the corresponding period of the previous year.
Driven by the high base effect from the corresponding period in the previous financial year, The growth in new policy issuances for FY23-2024 was 2.5 per cent.
With new business premium collections reaching Rs 3,77,960 crore in FY23-2024, marking a two per cent growth over the previous fiscal year (FY23), annually, the Indian life insurance sector achieved a significant milestone.
According to the data released by the Life Insurance Council, the life insurance industry recorded new business premium (NBP) collections of Rs 60,213 crore in March 2024, showing a substantial 41.5 per cent growth in group premiums. This significant increase in group single premiums was the biggest contributor to the rise in NBPs. Clearly, group premiums contribute around 60 per cent to the overall NBP, propelling life insurers to prioritize initiatives aimed at attracting first-time life insurance buyers. As a result, there was a 3.69 per cent growth in individual premium collections for FY24. The life insurance industry in India is advancing by improving insurance access and extending services to the uninsured segment of the population. This is evident in the robust growth of individual life insurance agents, with Indian life insurers adding 2,76,850 agents in FY24 alone. the increase is supported by the rapid pace of digitalization managed by life insurers. This move means well for the increased insurance penetration that should strengthen new business premiums in FY25 and beyond.