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Overview

The first-year premium numbers in July 2023 fell by 28.7% vs. an increase of 18.3% in June 2023 and 91.2% in July 2022. This decrease can be attributed to a plunge in group premiums more specifically to LIC, coupled with the new tax regime, and high momentum in March 2023. Growth in the private sector partially offset the fall in LIC premiums. The private insurance companies continue to extend their growth albeit at a comparatively slower pace versus the last year. Additionally, year-to-date (YTD) FY24 new business premiums of life insurers reported a drop of 10.5% compared to the over 50% growth in YTDFY23. The y-o-y decline can be attributed to group premiums (primarily single premiums and LIC). Meanwhile, the absolute growth in YTD FY24 compared with YTD FY22 is over 35%, indicating that the growth might be normalizing. Private insurance companies continued their growth momentum as they witnessed growth in the individual space.

Figure 1: Movement in Monthly First-year Premium (Rs crore)

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