Life Insurance Premiums Slide In January For The Third Month In A Row As Group Single Premiums Fall — CareEdge

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

CareEdge Report

The life insurance industry reported a YoY decline of 0.9% in the Annual Premium Equivalent for January 2025, following a growth of 25.2% in January 2024. Private life insurers were mainly able to offset the drop in LIC (reduction in group single premiums) for the month.

Factors influencing growth include changes in policy structures regarding the sum assured and commissions, following the revised surrender value guidelines effective October 1, 2024, challenges faced in the bancassurance channel, and heightened competition in several key areas.

LIC generates over 90% of its individual new business premiums through the agency channel, whereas private insurers source over 50% of their individual new business premiums from the bancassurance channel. In January 2025, sales of Individual Non-Single policies reached 24.3 lakhs, reflecting a 9.6% drop compared to the previous year, largely due to changes in surrender value regulations.

The industry's compound annual growth rate from January 2023 to January 2025 was 11.4%, with private players achieving 18.3%, while LIC mainly remained flat.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.