012-Apr 23, 2025: Life Insurers’ New Business Grows 5% in FY25 to ₹3.97 Lakh Crore
Hero Post 012 | April 23, 2025
Life Insurers’ New Business Grows 5% in FY25 to ₹3.97 Lakh Crore
📅 Context
India’s life insurance sector reported a 5.13% increase in new business premium collections for FY25, totaling ₹3,97,336.78 crore, signaling a revival after four months of decline.
🔍 Focus
Tracking the growth trends of life insurers in India, highlighting performance by private companies and LIC, and the impact of regulatory changes and agent expansion.
📊 Key Themes
- New business premium growth
- Private insurers vs LIC performance
- Individual new business premium trends
- Expansion of insurance agent networks
💲 Performance Highlights
- Overall premium growth: 5.13%
- Private insurers: 9.80% premium increase to ₹1,70,666.87 crore
- LIC: 1.86% growth to ₹2,26,669.91 crore
- March premium growth: 2.03% overall, breaking a four-month decline
📈 Individual and Group Business
- Individual new business premium up 11.17% to ₹1,66,590.81 crore.
- Group policy segment single premiums at ₹33,543.21 crore with 0.46% growth.
- LIC’s individual new business premium: ₹62,404.58 crore with 8.35% annual growth.
🥇 Strategic Drivers
- New surrender value norms introduced in October 2024.
- Focus on first-time buyers for comprehensive financial protection.
- Addition of over 11.15 lakh new individual agents, boosting cumulative agent strength by 7.88%.
🧰 GS Paper Mapping
| Paper | Area |
|---|---|
| GS Paper 3 | Indian Economy, Insurance Sector, Financial Market Trends |
🌟 Reflection
In the ledger of aspirations, each policy written is not merely a contract—it is a whispered vow that tomorrow can be shielded, that uncertain skies can be met with a steady, human promise.
