NBP for life insurers fell by 4.5 per cent YoY in November 2024, totaling Rs 25,306.56 crore, as LIC’s premiums plummeted. Private insurers, however, saw a robust 30.84 per cent growth, easing the industry’s overall decline
Life insurance companies' new business premiums (NBP) declined by 4.5 per cent year-on-year (YoY) in November 2024, totaling Rs 25,306.56 crore, following a drop in the Life Insurance Corporation of India (LIC)'s business. However, growth in premiums from private insurers helped offset the overall drop.
Data from the Life Insurance Council shows that LIC’s premiums fell by 27.17 per cent YoY to Rs 11,751.11 crore, while private insurers recorded a 30.84 per cent YoY rise in NBP, reaching Rs 13,555.45 crore, as the industry adjusted to the impact of revised surrender value norms.
Experts attribute the private sector's growth in November to changes in surrender value regulations.
Effective October 1, revised surrender value norms mandated life insurers to offer an improved special surrender value (SSV) to policyholders after completing the first policy year, provided they had paid the full premium for that year. Previously, insurers were not required to make any payments to customers surrendering their policies within the first year.
While LIC’s individual premium segment recorded a 5.66 per cent YoY drop to Rs 4,021.87 crore, its group premiums declined significantly by 35.37 per cent to Rs 7,607.72 crore. However, group yearly premium collections grew by 21.97 per cent YoY to Rs 121.52 crore, according to the data.
SBI Life Insurance, the largest private life insurer, reported an 8.12 per cent YoY increase in premiums to Rs 2,575.18 crore. HDFC Life posted a 13.06 per cent YoY growth to Rs 2,441.7 crore. ICICI Prudential Life’s premiums more than doubled to Rs 3,221.56 crore. Bajaj Allianz experienced a 10.7 per cent YoY decline, while Max Life Insurance recorded a 20.9 per cent YoY increase.
The life insurance industry's NBP for April grew by 15.7 per cent YoY to Rs 2.44 trillion. LIC posted a 16.08 per cent YoY rise to Rs 1.44 trillion during this period, while private life insurers achieved a 15.09 per cent YoY growth to Rs 1 trillion.
In November 2024, insurers sold 14.86 lakh policies, a decline of around 27 per cent compared to the previous year. However, policy sales during April-October increased by 1.2 per cent YoY to 1.60 crore.