Significant Surge in Life Insurance New Business Premium Income in April 2024

In April 2024, the life insurance industry experienced a significant rise in New Business Premium (NBP) income, marking a robust growth of 61.23% year-on-year. The total NBP income reached Rs 20,258.86 crore, a substantial increase from Rs 12,565.31 crore recorded in the same period last year. This surge is a testament to the industry’s resilience and its ability to attract new policyholders amid evolving market conditions.

Group Single Premiums Lead the Growth

The primary driver behind this impressive growth was the substantial rise in group single premiums. According to the latest data released by the Life Insurance Council, group single premiums soared by 126.33%, amounting to Rs 11,715.42 crore in April 2024, compared to Rs 5,176.23 crore in April 2023. This indicates a growing trend among corporations and institutions to invest in group insurance policies, reflecting confidence in the life insurance sector.

Increase in Individual Policy Sales

The industry also witnessed positive trends in individual policy sales. The number of policies sold under individual single premium plans grew by 19.05%, while individual non-single premium plans saw a 10.31% increase. These figures highlight a steady demand for individual life insurance products, driven by rising awareness about financial security and planning.

LIC’s Dominant Performance

Life Insurance Corporation of India (LIC) played a pivotal role in the overall growth, showcasing an impressive 113% increase in premium collection. LIC’s total premium collection in April 2024 stood at Rs 12,383.64 crore, a significant leap from Rs 5,810.10 crore in April 2023. LIC’s strong brand presence and extensive reach have contributed to its substantial performance.

Mixed Results for Private Insurers

Private life insurance companies also reported positive, albeit slower, growth rates. Among the large private players, SBI Life emerged as the largest insurer with a premium growth of approximately 26.30%. HDFC Life’s NBP increased marginally by 4.31%. Other private insurers, such as ICICI Prudential Life Insurance and Bajaj Allianz Life, recorded premium growths of 28.13% and 25.20% respectively. Max Life Insurance’s premium rose by around 41%, showcasing healthy growth across the sector.

Conclusion

The significant rise in New Business Premium income in April 2024 underscores the life insurance industry’s robust growth trajectory, driven primarily by group single premiums and LIC’s exceptional performance. While private insurers exhibited mixed growth rates, the overall industry outlook remains positive, reflecting increasing consumer confidence and a heightened focus on financial security.