Life Insurers See Premium Growth in May

India's life insurance sector has demonstrated resilience, marking a nearly 13% increase in new business premiums for May 2025.

This growth highlights the industry's ability to adapt to changing market dynamics and consumer needs. The rise is primarily fueled by private sector insurers, signaling a shift in market share and strategic focus. This positive trajectory suggests a promising outlook for the life insurance industry, driven by both individual and group business segments.

Top 5 Key Insights:

Overall Premium Growth: The life insurance industry experienced a 12.68% year-on-year increase in new business premiums (NBP) in May 2025, reaching Rs 30,463 crore. This substantial growth indicates a strong recovery and positive momentum in the sector. The increase reflects a renewed interest in life insurance products among consumers.

Private Sector Leadership: Private sector life insurers led the growth, posting a 16.6% year-on-year increase in NBP, amounting to Rs 12,058 crore.

This outperformance underscores the effectiveness of their strategies and their ability to capture a larger market share. The private sector's agility and innovative product offerings are key drivers of this growth.

LIC's Steady Performance: State-owned Life Insurance Corporation of India (LIC) recorded a 10.3% year-on-year growth in NBP, reaching Rs 18,405.05 crore.

LIC's consistent performance highlights its enduring market presence and customer trust. Its extensive network and traditional policies continue to attract a significant customer base.

Individual vs. Group Business: Individual business grew by 3.35% year-on-year, while group business expanded by 18.4% year-on-year. This divergence indicates a growing preference for group insurance schemes, possibly driven by corporate offerings and awareness campaigns. The robust growth in group business suggests increasing employer interest in providing comprehensive coverage to employees.

Policy Sales Decline: Despite the increase in premium collection, the number of policies sold decreased by 10.43% year-on-year. This suggests that higher-value policies are being purchased, contributing to the overall premium growth even with fewer policies being sold. This trend may also reflect changing consumer priorities, with a focus on comprehensive coverage over multiple smaller policies.

Expert Insight:

Life Insurance Council: "The strong performance is attributed to life insurers' focus on encouraging first-time buyers to secure essential life insurance solutions, contributing to a 3.35% growth in combined individual premium collections for May 2025 and 2.46% growth on a year to date basis."

Wrap-up:

The life insurance sector's growth in new business premiums reflects a positive trend driven by strategic initiatives and market dynamics. The shift towards higher-value policies and the increasing prominence of private sector insurers indicate evolving consumer preferences and competitive strategies. While challenges remain, the industry's resilience and adaptability position it for continued progress and expansion.

This growth underscores the importance of financial planning and security in an uncertain economic landscape.

Author Bio:

Rohan Desai has dedicated 10 years to analyzing business trends, technological innovations, and international trade dynamics. His expertise spans from startup ecosystems to global economic policy.

Citations: New business premium of life insurers in May grows around 13%, shows data