India life insurance sector records steady growth

The Indian life insurance sector has recorded potential growth of 5.1% in their new business premium collection to Rs.3.97 lakh crore during March of Fiscal year 2025. According to the report given by Life Insurance Council, the industry had collected Rs.3.77 Lakh crore in their previous financial year.

The Annual Premium Equivalent (APE) after seeing a decline of 4.1 percent in Year-on-Year from previous year, the APE has increased up to 4.5 percent this march. This growth of insurance sector has been credited to Private sector insurers. Life Insurance Corporation of India has earned total Rs.2.26 lakh crore in the new premium business for the financial year 2025. This includes Rs. 62,404.58 crore generated from the individual new businesses.

The industry has seen a growth of 6.8% compound annual growth rate (CAGR) from FY2023-FY2025. Among which 12.7 percent of the growth is credited to private players. But the life insurance has dropped 2 percent decline. The individual non-single policies dropped by 19.1 percent for YOY, this highlights the shift in customer preference. The LIC has sold a total of 1.78 crore new policies irrespective of its new surrender norms being in action from October 1, 2024.

Overall the Indian Life Insurance Industry has been recording significant growth and reaching new horizons.