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Overview

The first-year premium numbers in June 2023 rose by 18.3% vs. a decline of 4.1% in May 2023 and 30% in April 2023 and a 4.1% growth reported in June 2022. This movement can be attributed to steady growth in private sector companies and a recovery in single premiums more specifically to LIC, which partially offset the new tax regime, and high momentum in March 2023. The private insurance companies continue to extend their lead in the individual non-single premium segment.

Figure 1: Movement in Quarterly First-year Premium

Meanwhile, Q1FY24 new business premium of life insurers reported a marginal drop of 0.9% and stayed nearly the same compared to Q1FY23. This comes on the back of a 39.7% growth reported in Q1FY23. The y-o-y decline can be attributed to group premiums (primarily LIC). Private insurance companies continued their growth momentum as they witnessed growth in the individual space. Further, Q1 is generally a few quarters after the strong momentum of the Q4 of the last year, however, as can be seen in the above figure, the sequential reduction has been smaller compared to earlier quarters.

Figure 2: Movement in Monthly First-year Premium (Rs crore)

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