Life insurers report flat growth in Q1, FY24

economictimes.indiatimes.com:

industry reported a 1% decline in growth of new business premium income during the first quarter of FY2023-24, primarily due to a dip in group regular policies amid muted demand for group superannuation products. Also, the uncertainty surrounding the commission structure contributed to the flat growth.

During the April-June period, private life insurers reported a growth of 10.58% in their total premium income to ₹28,167 crore compared to ₹25,437 crore in the same period last year. This was largely driven by an increase in group single premium policies.

In contrast, state-owned Life Insurance Corporation of India (LIC) witnessed a decline of 7% in its total premium income to ₹44,837 crore from ₹48,201 crore during the same period. «The decline in group regular premium policies and subdued demand for annuity products weighed down the growth of the life insurance industry in the first quarter of FY 2023-24,» said an insurance executive.

«Also, the uncertainty surrounding the commission structure has exacerbated the situation.» On the group policy front, LIC faced a decline of 20% in premiums collected while private insurers recorded 57% decline in group non-single premiums during the three-month period. For the month of June alone, LIC reported a premium collection of ₹24,971 crore, showing a year-on-year growth of 20.96% compared to ₹20,644 crore in June 2022.