November 2024 Sees Rise In Private APE; LIC APE Impacted By Weak Group Single Premiums: CareEdge

CareEdge Report

The life insurance industry reported a higher sequential annual premium equivalent growth of 19.9% YoY in November 2024, compared to 10.6% in October 2024, following a strong H1 FY25. Private life insurers drove this growth. Another factor impacting the growth momentum is the difference in the distribution channel mix: LIC derives over 90% of the individual new business premiums from the agency channel, while private insurers derive over 50% of the individual new business premiums from the bancassurance channel.

The number of Individual Non-Single policies sold in November 2024 was 13.9 lakhs, a 28.9% drop compared to the previous year, primarily due to revised surrender value norms and as LIC volumes dipped.

The two-year (November 22 – November 24) CAGR was 1.8% for the industry, with private players at 18.0%, while LIC witnessed a fall of 22.8%.

The muted growth can be attributed to ULIP sales, volatile equity markets, group single premiums, and changes in the policy structure on the sum assured and commissions due to the revised surrender value guidelines effective October 01, 2024.

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