Indian Life insurers end FY2023-24 on a high; post 15.6% growth in new business premiums in March 2024

• New business premium collections grow by 15.6% in FY23-2024 on a Y-o-Y basis in the month of March 2024 powered by strong demand for enhanced insurance protection from both individual and corporate consumers
• 2.5% growth in new policy issuances for FY23-2024 largely due to high base effect of corresponding period in previous financial year
• On a yearly basis, the Indian life insurance industry surpasses a new milestone with new business premium collections of ₹3,77,960 crores, representing a 2% growth over FY23

Mumbai, 18 April, 2024: Established as a forum to coordinate discussions between all stakeholders in the Indian life insurance industry, the Mumbai-based Life Insurance Council released annual industry business figures today. The new business premium underwritten by Indian life insurers has been growing steadily, achieving a 12% CAGR between 2014 and 2023. The industry reported a 15.6% Y-o-Y increase in new business premiums (NBP) in the month of March 2024, with the cumulative figure for FY24 coming in at 2% higher than what was achieved in the previous financial year. The NBP of Indian life insurers came in at ₹3,77,960 crores for the year ending March 2024, supporting life insurers new business premium collections that stood at a record high of ₹3,70,543 crores for the same period previous year.

According to data released by Life Insurance Council, the life insurance industry saw its NBP collection coming in at ₹60,213 crores in March 2024, there is 41.5% growth in group premiums, with a similar increase in group single premiums being the biggest contributing factor to the rise in new business premium. Considering the fact that group premiums contribute nearly 60% of the overall NBP, life insurers have also been focusing on encouraging first-time life insurance buyers, resulting in a 3.69% growth in individual premium collections for FY24.

The life insurance industry in India has been powering ahead by improving insurance access and reaching out to the uninsured section of the country’s population. This is reflected in the strong growth in individual life insurance agents, with Indian life insurers adding 2,76,850 agents in FY24 alone. This increase is being complemented by the rapid pace of digitalisation being undertaken by life insurers, auguring well for further increases in insurance penetration that should bolster new business premiums in FY25 and beyond.