The private life insurance industry experienced a robust growth in premium of 35 per cent in March 2023, an
The private life insurance industry in India witnessed a strong growth in premium in March at 35 per cent, according to latest data from the Life Insurance Council. The overall growth in premium for FY23 was also impressive, up by 20 per cent.
The surge in demand for life insurance policies was primarily seen towards the end of the financial year, with the private life insurance sector emerging as the clear winner.
Among the leading private life insurers, HDFC Life Insurance recorded a remarkable growth in premium of 83 per cent in March, making it the top performer. The insurer’s FY23 premium also witnessed a growth of 16 per cent.
Max Life Insurance followed second, with a premium growth of 43 per cent in March and a 13 per cent growth for FY23. ICICI Prudential Life Insurance recorded a premium growth of 31 per cent year-on-year (y-o-y) in March, while SBI Life Insurance saw a y-o-y premium growth of 23 per cent in the same month.
On the other hand, Life Insurance Corporation (LIC) of India, the largest life insurer in India, had a lacklustre performance with a significant reduction in premium. Its premium in March declined by 32 per cent, and the FY23 premium only grew by 17 per cent. The retail annualised premium equivalent (APE) for LIC in March witnessed only a modest growth of 10 per cent.
LIC’s share of new business premium (NBP) has been continuously declining for the fiscal year FY23 and currently stands at around 62-63 per cent, which is one of its lowest levels in recent times.
This significant drop in numbers can be attributed to the introduction of the new tax regime, which eliminates exemptions previously used as a significant selling point by LIC agents and other life insurance businesses operating on the ground.
Despite LIC’s weak performance, the private life insurance industry’s strong growth in premium had a positive impact on the overall numbers. The retail annualised premium equivalent (APE) for the private life insurance industry witnessed an annual growth of 56 per cent in March, leading to an overall growth of 13 per cent in premium.
Overall, the private life insurance industry’s robust growth in premium in March and for FY23 indicates a growing awareness of the importance of life insurance among the Indian population. With the continued focus on digitalisation and innovation, the industry is expected to witness further growth in the coming years.
