Insurance companies reported nearly 23 per cent growth in first year premium in the first quarter of financial year 2024-25, when compared to the same period last year, with market leader LIC leading the charge with 28 per cent growth.
According to the data released by the Life Insurance Council, the new business premium (NBP) increased by 22.91 per cent year-on-year (Y-o-Y) to Rs 89,726.7 crore in Q1FY25 from Rs 73,004.87 crore in Q1 FY24, reflecting a robust demand for insurance policies in the country.
Life Insurance Corporation of India (LIC) clocked 28.11 per cent growth to Rs 57,440.9 crore in three- month period ended June 30, 2024 aided by growth in group premium.
LIC recorded a 33.49 per cent rise in its Group Single premium to Rs 44,671.86 crore in April-June quarter of FY25 from the same period last year.
On the other hand, private life insurers clocked 14.62 per cent Y-o-Y improvement in their premium to Rs 32,285.8 crore from Rs 28,167.66 crore supported by healthy growth in the individual segment.
Low base effect, increased insurance coverage and increase in single premium drove the growth in life insurance premium in the first quarter of FY25.
In the quarter, individual single premiums have seen a decent growth.
There is definitely an element of low base, but, in the last two months, the sum assured has also been rising.
In FY25, the premiums are likely to grow by nearly 13 per cent, said Saurabh Bhalerao, associate director, CareEdge Ratings.
SBI Life Insurance, the largest private sector life insurer posted 13 per cent growth in premium to Rs 7032.69 crore over last year while ICICI Prudential Life Insurance recorded 23.5 per cent growth in premium to Rs 3768.55 crore.
Other major players including HDFC Life, Bajaj Allianz Life Insurance and Max Life Insurance posted 9.19 per cent, 17.78 per cent and 11.87 per cent growth respectively.
In the quarter ended in June 30, 2024 market share of LIC stood at 64 per cent as compared to 61.4 per cent in corresponding period last year.
The share of private insurance companies accounted for 35.9 per cent of the NBP as compared to 38.6 per cent last year.
In the period under consideration, the life insurers posted nearly 12 per cent growth in sale of policies.
In June 2024, premium of the insurers increased by 14.80 per cent Y-o-Y to Rs 42,433.7 crore.
LIC posted 13.60 per cent Y-o-Y growth to Rs 28,366.9 crore whereas private insurers clocked 17 per cent Y-o-Y growth in premium to Rs 14,066.8 crore.
