Life insurance companies new business premium rise 37% in March

Life insurance companies have recordedanincrease of 37 percent in new business premiums (NBP) to Rs 59,608.92 crore in March 2022, with LIC recording 51 percent surge in first-year premiums.

In FY22, the life insurance industry’s combined new business premium growth rate was 13 percent year over year, according to data released by IRDAI.

LIC NBP jumped nearly 8 percent to Rs 1.98 trillion for 2021-22.

“The robust growth in monthly numbers can be attributed to an increase in single premiums for both individual and group segments in the last month of the financial year (with individuals undertaking tax planning measures),” a CareEdge report said.

LIC substantially outpaced its private peers for the second month in a row, with a 63.2 percent share of the first-year premium pie for the life cover sector in FY22. The private sector, with the remaining 36.8 percent share of the total NBP, however, continued to gain market share at a faster clip compared to LIC, CareEdge report said.