In a recent update from the Life Insurance Council, the Indian insurance industry has experienced a substantial surge in new business premium (NBP) collections for April 2024 witnessing a remarkable surge of 61.23% year-on-year.
According to data collated by the council, the NBP of Indian life insurers soared to ₹20,258.86 crores in April 2024, marking a substantial increase from ₹12,565.31 crores in April 2023. The premium earned from new contracts in a given period is referred to as the new business premium.
The standout factor driving this surge is the remarkable increase of 126.33% in Group Single Premium, signaling a growing emphasis on comprehensive insurance coverage among corporate entities. This trend reflects a strategic shift towards prioritizing risk management strategies amidst prevailing uncertainties in the economic landscape.
Furthermore, the data reveals positive growth trends in individual policy segments, with Individual Single Premium Policies witnessing a 19.05% growth, and non-single premium policies experiencing a commendable 10.31% increase.
Another contributing factor to the industry’s growth trajectory is the significant expansion of the insurance workforce, evidenced by the addition of 49,205 life insurance agents within the first month of the financial year.
This surge in agent recruitment underscores the growing allure of the insurance sector as a lucrative career option, supported by promising growth prospects and evolving consumer needs.
“This increase is being complemented by the rapid pace of digitalisation being undertaken by life insurers which should further aid in the growth of the sector as well as in deepening penetration across the nation,” the council said.
The NBP of Indian life insurers came in at ₹3,77,960 crore for the year ending March 2024, supporting life insurers NBP collections that stood at a record high of ₹3,70,543 crore for the same period previous year.
According to data released by the LI Council, the industry saw its NBP collection coming in at ₹60,213 crores, a 15.6% growth in March 2024 — at a 41.5 per cent growth in group premiums, with a similar increase in group single premiums being the biggest contributing factor.
Looking forward, the Indian insurance industry looks poised for continued growth, driven by evolving consumer preferences, robust demand from corporate entities, and the relentless pursuit of innovation and digital transformation.
As the sector evolves, stakeholders are encouraged to embrace opportunities for collaboration and innovation, ensuring the provision of comprehensive and accessible insurance solutions to all segments of society.