In May 2024, the life insurance industry experienced significant growth in new business premiums (NBP), increasing by 15.5% compared to the same period last year. This growth was driven by gains across various segments, as reported by the Life Insurance Council.
The total premiums collected by the industry amounted to Rs 27,034.2 crore in May 2024, up from Rs 23,477.8 crore in May 2023. This increase was largely supported by the Life Insurance Corporation of India (LIC), which saw its premiums rise by 18.7% to Rs 16,690 crore, compared to Rs 14,056.3 crore a year earlier. LIC's growth was primarily fueled by a strong performance in its group business segment.
Private insurance companies also showed positive results, with their first-year premiums growing by 9.8% year-on-year, reaching Rs 10,343.8 crore in May 2024, up from Rs 9,421.51 crore in May 2023.
The group premium segment within the life insurance industry saw a 13.14% increase year-on-year, totaling Rs 16,766.71 crore. LIC's group premium products experienced even higher growth, with a 20.9% increase to Rs 12,632.26 crore, compared to Rs 10,448.74 crore in the same period last year.
The individual premium segment of the industry also performed well, rising by 18.6% to Rs 10,267.4 crore in May 2024. Private life insurers, which dominate this segment, reported a 23% growth in individual premiums, reaching Rs 6,209.3 crore, up from Rs 5,051.29 crore in May 2023.
Among the private insurers, SBI Life Insurance, the largest in the sector, saw a slight decline of 2.48% in new business premiums, which amounted to Rs 2,354.33 crore, down from Rs 2,414.13 crore the previous year. In contrast, HDFC Life Insurance experienced a 13.98% increase in premiums, reaching Rs 2,270.88 crore.
ICICI Prudential Life Insurance reported a significant 32.63% year-on-year increase in premiums, totaling Rs 1,317.75 crore. Max Life Insurance also saw robust growth, with premiums rising by 23.25% to Rs 673.88 crore.
Additionally, the number of policies issued by insurers in May 2024 rose by 12.45% year-on-year, with 1.9 million policies sold compared to 1.7 million in May 2023.
This overall positive performance highlights the strong growth trajectory of the life insurance industry, driven by both public and private sector players, as well as robust growth in group and individual premium segments. The increase in new business premiums and the number of policies sold indicates a healthy and expanding market, catering to the evolving needs of consumers.
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