Home / Insurance / News /  Life insurers report 15% growth in first-year premium

NEW DELHI :

In October 2022, the new business premium income of India’s life insurance companies increased by 15.3 per cent to 24,917 crore, according to a report by Care Edge Ratings.

Compared to October 2021, all the 24 life insurers had a collective new business premium income of 21,606 crore in the same month.

“The first-year premium of life insurers reached 24,917 crore in October 2022 from 21,606 crore in October 2021, exhibiting a y-o-y growth rate of 15.3%, vs. a fall of 5.1% reported in October 2021," the Care Edge Ratings said.

Meanwhile, following a regular trend, premiums fell sequentially compared to September 2022. The y-o-y growth can primarily be attributed to group single premiums and more specifically to LIC, while growth in individual premiums at the private players too supported growth.

According to the brokerage report, the year-to-date FY23 first-year premium numbers grew by 34.7% vs. the 4.1% growth reported in the same period last year.

“For October 2022, the growth rate of non-single premiums reduced to 8.6% vs. 14.4% reported in October 2021. On the other hand, single premiums reversed last October’s fall of 12.3% to a growth rate of 18.5% in October 2022. Single premiums continue to account for a substantial portion of the overall first-year premiums," the report said.

The share of single premiums has increased from 60% for FY20 to 69% in FY22 and is at 74% for year-to-date FY23 (vs. 71% for the same period last year).

For October 2022, the group premiums increased by 29.9%, while individual premiums fell by a modest 2.2%, as per the data.

For the year-to-date numbers, growth in individual premiums was one-third of the growth in group premiums. Individual premiums continue to remain smaller in size compared to group premiums.

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