Indian Life Insurance Sector Recorded 13.16% YoY Growth in Premiums for October 2024

The Indian life insurance sector recorded a strong year-on-year (YoY) growth in new business premiums (NBPs) for October 2024, with premiums increasing by 13.16% compared to the same period last year, according to the Life Insurance Council’s October 2024 business report.

On a year-to-date (YTD) basis, the industry delivered an impressive performance, with premium collections rising by 18.56%, from ₹1,85,195.81 crore to ₹2,19,561.64 crore. This growth underscores the sector’s positive financial trajectory.

However, despite these strong financial results, the number of new policies issued saw a significant decline. In October 2024, only 12,01,214 policies were sold, representing a sharp drop of 41.6% compared to the 20,56,928 policies issued in the same month of the previous year.

The sector’s focus on acquiring new customers played a major role in driving the growth. For October, the combined individual premium collections saw a 4.52% increase, with a notable 16.89% growth recorded on a YTD basis.

Looking at specific premium types, individual single premiums grew by 8.6% YoY in October, reaching ₹3,397.07 crore. On a YTD basis, this segment saw an even stronger increase of 14.16%. Meanwhile, individual non-single premiums rose by 2.76% in October, totalling ₹7,453.5 crore, with YTD collections showing an 18.23% YoY increase.

The group policy segment also contributed significantly to the sector’s overall growth. Group single premiums saw a substantial rise of 15.81% in October, reaching ₹18,258.37 crore, and achieved a YTD growth of 18.61% YoY. In contrast to the decline in individual policy issuances, the group segment saw a modest 2.7% increase in the number of policies issued.

The industry also saw growth in its distribution network, with life insurers adding 5,82,565 individual agents over the past year, raising the total number of agents by 2.64%.

Additionally, the Life Insurance Council highlighted the sector’s ongoing embrace of digitization, which is expected to enhance customer reach and improve service delivery. The digital transformation is anticipated to drive increased insurance penetration and contribute to sustained growth in premiums for FY25 and beyond.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.