India's life insurance sector saw a 14.8% y-o-y increase in premiums in June 2024, reaching INR42,434 crore ($5bn), with significant improvements in both premium collections and policy issuances. The performance highlights a strong and growing demand for life insurance in India.
The sector’s ability to attract new policies and maintain growth across various segments suggests a continued upward trajectory. Data from the Life Insurance Council revealed that premium collections surged from INR36,961 crore in June 2023 to INR42,433 crore in June 2024. New policy issuances also grew by 12.13% YoY, with 2,179,282 policies issued compared to 1,943,529 in June 2023. Individual single premiums grew by 5.94% y-o-y to INR3,823 crore, while individual non-single premiums increased by 19.61% YoY to INR8,310 crore. Group single premiums rose by 13.49%, with collections at INR28,711 crore. Overall, the group policy category saw a 14.75% y-o-y growth in premiums and a 6.73% increase in new policy issuances. Strong Q1FY25 for life insurers
The first quarter of FY25 has been highly successful for India’s life insurance sector, with new business premiums growing by 22.91% y-o-y. This period witnessed a surge in both premium collections and policy issuances, reflecting a strong market performance and increased consumer confidence in life insurance product.
Quarterly performance highlights
New business premium for Q1FY25 reached INR89,726 crore, up from INR73,004 crore in Q1 FY24, reflecting a 22.91% y-o-y increase. The June 2024 premium figure alone represents a 14.80% y-o-y rise. The country’s largest life insurer, Life Insurance Corporation of India reported a 28.11% growth in Q1 premiums, totalling INR57,440.9 crore. Notably, group single premiums saw a 33.49% increase. On the other hand, private insurers collectively experienced a 14.62% y-o-y increase in premiums, reaching INR32,285.8 crore, driven by strong individual segment growth