LIC records highest April premium since 2014: Pvt Insurers' growth slows

Life Insurance Corporation of India (LIC), the nation's largest life insurer, has set a new benchmark in the Indian life insurance sector by achieving its highest premium collection in April 2024 since 2014.

According to data released by the Life Insurance Council, LIC's premium collection for the month soared to Rs 12,383.64 crore, marking an impressive 113.14% increase compared to April 2023's collection of Rs 5,810.10 crore.

This achievement can be ascribed to LIC's deployment of innovative marketing strategies and its emphasis on reliability and customer-centric services. These initiatives have broadened LIC's market penetration, leading to heightened policy adoption rates and premium collections.

Breaking down the premium collections, LIC collected Rs 3,175.47 crore under the Individual Premium category in April 2024, representing a notable 25.17% increase from April 2023's collection of Rs 2,537.02 crore. Group Premium witnessed remarkable growth, surging by 182.16% to Rs 9,141.34 crore in April 2024 from Rs 3,239.72 crore in April 2023. Moreover, the Group Yearly Premium category saw a significant increase of 100.33%, rising to Rs 66.83 crore in April 2024 from Rs 33.36 crore in April 2023.

In addition to premium collections, the total number of policies and schemes issued by LIC also witnessed a notable increase, rising by 9.12% to 8.56 lakh in April 2024 compared to 7.85 lakh in April 2023. Similarly, under the Individual category, the total number of schemes and policies rose by 9.11% to 8.55 lakh in April 2024 from 7.84 lakh in April 2023.

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While LIC demonstrated resilience and growth, private insurers faced challenges due to policy changes from the previous fiscal year. Despite this, SBI Life witnessed a commendable premium growth of around 26%, while other private sector players such as HDFC Life, ICICI Prudential Life Insurance, Bajaj Allianz Life, and Max Life Insurance also recorded healthy increases in premium.

HDFC Life’s NBP rose marginally by 4.31%, ICICI Pru premia increased 28.13%, Bajaj Allianz Life swelled 25.20%, and Max Life Insurance’s premium climbed by around 41%.

According to industry experts, the private players experienced muted growth in April last fiscal year due to the imposition of a tax on high-value policies.