The Life Insurance Council has shared new industry business numbers for May 2024, revealing some important highlights. One of the main takeaways is that new business premiums (NBPs) underwritten by Indian life insurers have seen a solid year-on-year (Y-o-Y) growth of 15.15% in May 2024. Additionally, year-to-date (YTD) figures show an even more impressive 31.2% growth compared to the same period last year.

In financial terms, new business premiums increased from Rs 23,448 crore in May 2023 to Rs 27,034 crore in May 2024. The YTD collections also showed a significant rise, growing from Rs 36,043 crore to Rs 47,293 crore this year.

The growth in new business premiums is largely due to a strong demand for better insurance protection from individual consumers. This demand has also led to a rise in the number of new policy issuances, which increased by 12.45% on a Y-o-Y basis in May 2024. This increase resulted in 1,868,096 new policies being issued compared to 1,661,324 policies in the same period last year.

The Life Insurance Council's data indicates that the life insurance industry experienced an 18.3% Y-o-Y growth in individual single premiums, closing at Rs 3,351 crore for May 2024. On a YTD basis, this segment saw a growth of 21.49%. 

Similarly, individual non-single premiums came in at Rs 6,916 crore and grew by 18.7% in May 2024. The YTD collections for this segment were 20.14% higher than the corresponding period last year. This strong performance can be attributed to life insurers focusing more on encouraging first-time life insurance buyers to purchase essential life insurance solutions. This effort contributed to an 18.58% growth in combined individual premium collections for May 2024 and a 20.6% growth on a YTD basis.

In the group policy segment, single premiums grew by 16.7%, with monthly collections amounting to Rs 15,976 crore. The group policy category saw a 13.15% growth in premiums collected in May 2024. Additionally, new policy issuances in this category expanded by 21.15% on a Y-o-Y basis.

This robust growth across various segments of the life insurance industry showcases the increasing awareness and demand for insurance products among consumers. The steady rise in premiums and policy issuances indicates a positive trend towards financial protection and security, driven by both individual and group policyholders. The industry's focus on catering to first-time buyers and enhancing their insurance solutions has played a crucial role in achieving these impressive growth figures.

The life insurance industry in India is witnessing significant growth in new business premiums, driven by a strong demand for enhanced insurance protection and the proactive efforts of life insurers to attract first-time buyers. The positive Y-o-Y and YTD growth figures across various segments highlight the industry's resilience and its commitment to providing financial security to a growing number of policyholders.

Share On :