Life insurers raise Rs 27,034 Crore as new business collections

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New business premium collections of life insurance companies grow by 15.15% in the month of May 2024 compared to the same month last year, boost by strong demand for improved insurance protection from both corporate and individual consumers.

According to the Life Insurance Council, new policy issuances grew by 12.45% in the same period, reflecting strong underlying demand for life insurance products.

New business premium increased from Rs 23,448 Crore in May 2023 to Rs 27,034 Crore in May 2024, with year-to-date (YTD) collections rising even further to Rs 47,293 Crore from Rs 36,043 Crore. Driven by strong demand for enhanced insurance protection from individual consumers, new policy issuances in May this year also grew by 12.45 percent year-on-year, resulting in 16,61,324 new policies in the year. 18,68,096 policies were covered. Earlier period, it said.

According to data released by the council, the life insurance industry witnessed a growth of 18.3% in individual single premiums on a year-on-year basis and closed at Rs 3,351 Crore in May, with a year-on-year growth of 21.49%. Individual non-single premium came in at Rs 6,916 Crore and grew by 18.7% in May, while YTD collections were 20.14% higher than the same period last year.

“This strong performance can be attributed to the fact that life insurers are focusing on encouraging first-time life insurance buyers to purchase the required life insurance solutions Combined Individual Premium Collection for the month of May 2024 Contributing to the growth of 18.58 percent. An increase of 20.6 percent on YTD basis,” the council said.

In the group policy segment, single premium grew by 16.7% and monthly collections stood at Rs 15,976 Crore. In fact, the group policy category saw a 13.15% growth in premiums collected in May, while new policy issuances grew by 21.15% on a year-on-year basis.

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