Indian life insurance companies 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 per cent 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

Life Insurance Council — a forum to coordinate discussions between all stakeholders in the Indian life insurance industry — released annual industry business figures on Thursday, April 18, and stated that the new business premium underwritten by Indian life insurers has been growing steadily, achieving a 12 per cent CAGR between 2014 and 2023. 

The industry reported a 15.6 per cent 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 per cent higher than what was achieved in the previous financial year. The NBP of Indian life insurers came in at Rs 3,77,960 crore for the year ending March 2024, supporting life insurers new business premium collections that stood at a record high of Rs 3,70,543 crore 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 Rs 60,213 crores 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 to the rise in new business premium. 

Considering the fact that group premiums contribute nearly 60 per cent of the overall NBP, Life Insurance Council said that life insurers have also been focusing on encouraging first-time life insurance buyers, resulting in a 3.69 per cent growth in individual premium collections for FY24.

The insurers' body stated that 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, it said. 

Life Insurance Council said that 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.