The life insurance industry experienced a significant surge in new business premium collections in May 2024, rising by 15.15%. This growth was driven by strong demand for enhanced insurance protection from both individual and corporate consumers.
According to the Life Insurance Council, new business premium collections for life insurance companies increased to Rs 27,034 crore in May 2024, compared to Rs 23,448 crore in May 2023. Year-to-date (YTD) collections also saw impressive growth, rising from Rs 36,043 crore to Rs 47,293 crore this year.
Private insurance companies reported a 9.8% year-on-year increase in first-year premium collections, amounting to Rs 10,343.8 crore, up from Rs 9,421.51 crore in the previous year.
Life Insurance Corporation of India (LIC), the largest life insurer, showcased strong performance across all premium categories:
Private life insurers held a significant share in the individual segment, posting a 23% growth to Rs 6,209.3 crore in May 2024, up from Rs 5,051.29 crore in May 2023.
The Life Insurance Council attributed the strong performance to the increased focus on encouraging first-time buyers to purchase essential life insurance solutions. This contributed to an 18.58% growth in combined individual premium collections for May 2024 and a 20.6% increase on a YTD basis.
The number of new policies issued also grew by 12.45% year-on-year in May 2024, with 18,68,096 new policies added, compared to 16,61,324 in the previous year. The group policy segment also saw growth, with single premiums rising by 16.7%, totaling Rs 15,976 crore for the month.
Conclusion
The life insurance industry has demonstrated strong resilience and growth in May 2024, driven by increased demand and strategic focus on first-time buyers. Both individual and group premium collections have shown significant year-on-year growth, highlighting the industry’s robust performance and underlying demand for life insurance products.
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