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Life insurers are increasingly focusing on encouraging first-time life insurance buyers to buy essential life insurance solutions, The Council said in its report
India’s life insurance industry saw new business collections worth Rs 27,034 crore in the month of May 2024, according to data released by the Life Insurance Council, with new business premium collections increasing by 15.15 per cent compared to May last year.
There was a growth of 12.45 per cent in new policy issuance in the same period, boosted by a robust demand for enhanced insurance protection from individuals as well as corporate consumers. This led to 18,68,096 new policies being added, compared to 16,61,324 new policies on a year-on-year basis, the Council said in its report.
“This strong performance can be ascribed to the fact that life insurers are increasingly focusing on encouraging first-time life insurance buyers to buy essential life insurance solutions, contributing to the 18.58 per cent growth in combined individual premium collections for the month of May 2024 and 20.6 per cent growth on a YTD (year till date) basis,” the council said in its report.
The volume of new business premiums was Rs 23,448 crore last May and it rose to Rs 27,034 crore in May this year. The YTD collections for the same period was impressive, too, increasing from Rs 36,043 crore to Rs 47,293 crore.
The Council’s data further showed that individual single premiums surged by 18.3 per cent on a year-on-year basis to collect Rs 3,351 crore in May 2024. The YTD increase in the same period of time was 21.49 per cent.
Individual non-single premiums collected Rs 6,916 crore, and recorded an increase of 18.7 per cent in May 2024 on a year-on-year basis, while YTD collections saw a growth of 20.14 per cent compared to May 2023.
Single premiums in the group policy category registered monthly collections worth Rs 15,976 crore in May 2024, growing at 16.7 per cent. Overall, the group policy segment saw a growth of 13.15 per cent in terms of premium collected during the month of May 2024. New policy issuances increased by 21.15 per cent in the same period on a year-on year basis, according to data shared by the Council.
Life Insurance Corporation (LIC) of India, India’s largest insurance firm, registered growth across all premium categories, collecting premium worth Rs 16,690 crore in the month of May 2024. The amount marked an 18.74 per cent growth on a year-on-year basis, from Rs 14,056.29 crore in May 2023.