LIC’s New Business Premium Growth Exceeds Industry and Private Insurer in the first eight months of FY25
FinTech BizNews Service
Mumbai, 10 December, 2024: Life Insurance Corporation of India (LIC), the country’s largest life insurer, recorded a 16.08% year-on-year (YoY) growth in new business premium during the first eight months of FY25, exceeding the insurance industry’s growth of 15.67% and the private life insurers’ growth rate of 15.09%, according to data from the Life Insurance Council.
LIC collected Rs1,44,432.09 crore in premiums during this period, a 16.08% increase compared to Rs1,24,424.33 crore in the same period last year. The overall life insurance industry reported premium collections of Rs2,44,867.92 crore, reflecting a 15.67% YoY rise from Rs2,11,690.65 crore. Meanwhile, private life insurers garnered Rs1,00,435.83 crore, up 15.09% from Rs87,266.34 crore in the previous year.
New Business Premium (in Rs cr)
| April 2023 to November 2023 | April 2024 to November 2024 | % Change |
LIC | 1,24,424.33 | 1,44,432.09 | 16.08 |
Life Insurance Industry | 2,11,690.65 | 2,44,867.92 | 15.67 |
Private Life Insurer | 87,266.34 | 1,00,435.83 | 15.09 |
Source: Life Insurance Council | |||
In the Individual Premium segment, LIC saw an 11.13% increase, collecting Rs37,226.23 crore, up from Rs33,496.82 crore in FY24. The Group Premium segment expanded by 17.76%, reaching Rs1,05,554.77 crore from Rs89,636.52 crore in the prior year. Additionally, Group Yearly Premiums rose by 27.89% to Rs1,651.09 crore, compared to Rs1,209.98 crore during the same period last year.
During the eight-month period of FY25, LIC issued 1.60 crore policies and schemes, reflecting a 1.21% increase from 1.58 crore in the same period of FY24. While individual policies decreased by 2.85% to 1.05 crore from 1.08 crore, Group Yearly Renewable Policies declined by 3.46% to 18,402 from 19,062. However, Group Schemes and Policies saw a significant rise of 15.81%, reaching 3,376 from 2,915.
November 2024 Performance
In November 2024, the Individual Premium segment recorded a 5.66% decline, amounting to Rs4,021.87 crore, compared to Rs4,263.09 crore in November 2023. The Group Premium segment dropped sharply by 35.37% to Rs7,607.72 crore, down from Rs11,771.84 crore in the previous year. On the other hand, Group Yearly Premium Collections grew by 21.97%, totalling Rs121.52 crore, up from Rs99.63 crore in November 2023.
Total policies and schemes issued in November 2024 declined by 27.24% to 14.86 lakh, compared to 20.43 lakh in November 2023. The Individual Category saw a 41.39% drop, with 8.08 lakh policies and schemes issued, from 13.79 lakh. Group Yearly Renewable Policies and Schemes fell by 5.67% to 2,645 from 2,804, while Group Schemes and Policies grew modestly by 2.96% to 348, up from 338 in November 2023.
Prime Minister Narendra Modi on Monday launched Bima Sakhi Yojana, an initiative of the state-owned Life Insurance Corporation (LIC) that aims to enrol 100,000 Bima Sakhi in 12 months to financially empower women. Under the scheme, rural women will have the opportunity to become insurance agents, under the programme. The scheme offers financial assistance of up to Rs 7,000 per month. As part of the scheme, the women can earn Rs 7,000 to Rs 21,000. The scheme is designed to benefit women in the age group of 18-70 years, who are Class-10 pass. “Expansion of the insurance sector will be spearheaded by women via the scheme.
