September Life Insurance Data: Life insurers reported strong growth in first-year premiums in September, with industry-wide premiums rising 20.6% year-on-year (YoY) to Rs 48,781 crore, according to the latest data.
The growth was broad-based, with LIC, ICICI Prudential Life, HDFC Life, SBI Life and GoDigit all reporting higher first-year premiums during the month.
LIC First-Year Premium Rises 19%
Life Insurance Corporation of India (LIC) reported a 19.3% YoY increase in first-year premium to Rs 27,529 crore in September.
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Among private insurers, ICICI Prudential Life Insurance recorded the strongest growth among the major players, with first-year premium rising 25% YoY to Rs 2,701 crore.
HDFC Life, SBI Life Premiums Rise
HDFC Life's first-year premium increased 18.3% YoY to Rs 4,000 crore in September, while SBI Life Insurance reported a 10.4% YoY increase to Rs 4,035 crore.
GoDigit's first-year premium rose 28.9% YoY to Rs 127 crore during the month.
September Life Insurance Data
Industry-wide first-year premiums stood at Rs 48,781 crore in September, up 20.6% YoY. LIC's first-year premium rose 19.3% to Rs 27,529 crore, while SBI Life reported a 10.4% increase to Rs 4,035 crore.
ICICI Prudential Life's premium rose 25% to Rs 2,701 crore, HDFC Life's increased 18.3% to Rs 4,000 crore, and GoDigit reported a 28.9% rise to Rs 127 crore.
IRDAI Calls For Revamp Of Insurance Distribution
The September premium growth comes against the backdrop of a wider discussion around the insurance distribution system.
Insurance Regulatory and Development Authority of India (IRDAI) member Swaminathan Iyer, speaking to NDTV Profit earlier this week, called for a revamp of the insurance distribution system, citing fragile customer trust, rising distribution costs and persistent concerns over mis-selling.
Speaking on the regulator's consultation paper on insurance distribution, Iyer said the focus was on expanding insurance availability across India, aligning distributor incentives with customer interests and improving the delivery of insurance products.
“Need to bring customers' trust back,” Iyer said, while noting that customer trust remains fragile and that complaints related to mis-selling continue to be a challenge for the industry.
Distribution Costs Rise Sharply
Iyer also pointed to a sharp increase in distribution costs over the past few years.
According to him, data spanning a decade indicates a lack of efficiency in the distribution system, raising questions over whether the existing model is delivering insurance products effectively and economically.
The comments come as insurers report strong first-year premium growth in September, with the overall industry recording a 20.6% YoY increase to Rs 48,781 crore.
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