New Delhi ,
In October 2022, new business premium income of India’s life insurance companies grew by 15.3 percent 24,917 crore as per a report by Care Age Ratings.
As of October 2021, the collective new business premium income of all 24 life insurers was 21,606 crore in the same month.
“First year premium of life insurers reached 24,917 crore in October 2022. From 21,606 crore in October 2021, exhibiting an annual growth rate of 15.3%, versus a decline of 5.1% in October 2021,” said Care Edge Ratings.
Meanwhile, the premium fell sequentially as compared to September 2022, following a regular trend. The year-on-year growth can be mainly attributed to group single premium and more specifically LIC, while growth in individual premium among private players also supported the growth.
As per the brokerage report, the number of premiums for the first year of FY 2013 increased by 34.7% as compared to a growth of 4.1% in the corresponding period of the previous year.
“For October 2022, the growth rate of non-single premium decelerated to 14.4% versus 8.6% reported in October 2021. Single premium, on the other hand, declined to 12.3 per cent from the previous October growth rate of 12.3 per cent in October 2022. The report said that single premiums accounted for a large portion of the total first year premiums.
The share of single premium has increased from 60% for FY 2010 to 69% in FY 2012 and 74% for FY 2013 (versus 71% for the same period last year).
As per the data, for October 2022, group premiums increased by 29.9%, while individual premiums declined marginally by 2.2%.
For the year-over-year numbers, the increase in individual premiums was one-third of the increase in group premiums. Individual premiums remain smaller in size than group premiums.
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