India’s life insurance sector exhibited robust growth in the first quarter of FY25, marked by a 22.91% year-on-year increase in first-year premiums, totaling US$ 10.75 billion (Rs. 89,726.7 crore), up from US$ 8.75 billion (Rs. 73,004.87 crore) in FY24 Q1. Leading this expansion, the Life Insurance Corporation of India (LIC) saw premiums surge by 28.11% to US$ 6.88 billion (Rs. 57,440.9 crore), driven primarily by strong performance in group premiums. LIC’s Group Single premium also saw significant growth, rising by 33.49% to US$ 5.35 billion (Rs. 44,671.86 crore) compared to the previous year.
Private life insurers contributed to sector growth with a 14.62% year-on-year increase in premiums, amounting to US$ 3.87 billion (Rs. 32,285.8 crore), driven largely by gains in the individual segment. Factors such as a low base effect, expanded insurance coverage, and increased single premiums played pivotal roles in driving this upward trajectory. Analysts, including Mr. Saurabh Bhalerao from CareEdge Ratings, anticipate positive momentum with projected premium growth of nearly 13% for FY25. Major insurers such as SBI Life Insurance and ICICI Prudential Life Insurance reported substantial growth rates of 13% and 23.5%, respectively, highlighting the sector’s resilience and expanding market dynamics.
As of June 30, 2024, LIC maintained a dominant market share of 64% in New Business Premium (NBP), up from 61.4% in the corresponding period last year, while private insurers held a 35.9% share, slightly down from 38.6% the previous year. Policy sales across the industry also witnessed a significant uptick of nearly 12%, underscoring sustained demand and robust growth prospects in India’s vibrant life insurance industry.
