Life Insurance Corporation (LIC) of India has gained almost 4.5 percentage points market share in the current financial year (2022-23, or FY23) in new business premium (NBP) from private players, mainly on account of robust growth in its group business segment.
According to the latest data released by the insurance regulator – the Insurance Regulatory and Development Authority of India – LIC improved its market share by 67.72 per cent as of October, a gain of 447 basis points (bps), while private sector insurance companies’ market share dropped to 32.28 per cent.
At the end of 2021-22, private players had 36.75 per cent share of the life insurance market, while LIC had 63.25 per cent.
At the end of 2020-21, LIC’s market share was 66.18 per cent; private players took up 33.82 per cent of the market.
NBP is the premium acquired from new policies for a particular year. It is the sum of first-year premium and single premium, reflecting total premiums received from the new business written.
Among top private players, SBI Life shed 82 bps in market since the beginning of FY23; HDFC Life’s market share dropped 157 bps; and ICICI Prudential Life’s market share dropped 64 bps during this period.
The volatility in markets, resulting in muted growth in the unit-linked segment, weak growth in the retail protection business, and the push by banks to acquire deposits, contributed to private sector insurers’ growth moderating.