New business increased to Rs 42,914 crore in October this year, compared to Rs 34,007 crore in the corresponding month last year, according to data released by the Life…
Life insurers post 26 pc growth in new business premiums to Rs 42,914 crore in October
New business premiums collected by life insurance companies rose sharply in October, according to data released by the Life Insurance Council. Total new business premium for the month stood at Rs 42,914 crore, compared with Rs 34,007 crore in the same month a year earlier, a year-on-year increase of about 26 per cent. The Life Insurance Council is the industry body that compiles and publishes aggregate data on the life insurance sector.
What the numbers show
The headline figure covers new business premium, which refers to premium collected on fresh policies sold during the month rather than renewals on existing policies. Within the total, the Life Insurance Corporation of India recorded new premium of Rs 25,316 crore, against Rs 19,274 crore in October of the previous year. That works out to growth of 31 per cent for LIC, which means the state-owned insurer outpaced the overall market expansion for the month. The data does not break down the private insurers' share, the mix between individual and group business, or the split between single-premium and regular-premium policies.
Why it matters for businesses
For corporate policyholders, insurers, intermediaries and advisers, the monthly new business premium data is a useful indicator of activity in the life insurance market. Growth in fresh premium collection suggests higher volumes of new policies being written, which can have knock-on effects for distribution networks, commission structures and the competitive positioning of insurers. For companies that use group insurance or keyman cover, a growing market may influence product availability and pricing discussions at renewal. For insurers and brokers, the pace of new business also feeds into solvency, capital and reserving considerations, and is relevant to how they plan capacity and compliance processes. The figures are aggregate and reflect premium collected, not profitabil…
Services related to this update
Want this handled for you?
Get a free expert consultation and an exact quote within 24 hours.
Get free quote
