Life Insurance Booms with 19% Surge in Premiums

Life insurers in India saw a 14% rise in new business premiums, reaching Rs 35,020 crore in September. The first half of FY25 showed a 19% increase to Rs 1,89,214 crore, largely driven by increased demand for individual insurance protection, spurring a 45.49% rise in new policy issuances.

Life insurers in India reported a significant 14% increase in new business underwriting during September, amassing Rs 35,020 crore in premium collections. This marks a substantial rise from Rs 30,716 crore during the same period last year. The trend follows a robust 19% growth in the first half of FY25, climbing to Rs 1,89,214 crore from Rs 1,58,377 crore previously, according to the Life Insurance Council's monthly data.

Demand for enhanced insurance protection has evidently driven this surge, with new policy issuances skyrocketing by 45.49% year-on-year. September saw an addition of 32,17,880 policies compared to 22,11,680 in the corresponding month last year. Individual single premiums closed at Rs 5,142 crore, reflecting a 13% growth, with year-to-date growth at nearly 15%.

The Life Insurance Corporation (LIC) also showcased remarkable performance by collecting Rs 20,369 crore, a 25% increase from the prior year. The private sector also contributed with a 12% growth, totaling Rs 73,664 crore compared to Rs 65,734 crore a year ago. Efforts to extend insurance coverage across underrepresented populations in India continue to bolster industry growth.

(With inputs from agencies.)