Business News | Life Insurance New Business Premiums Rise 16.6% in Q1 on Private Insurers' Growth: Report
Get latest articles and stories on Business at LatestLY. India's life insurance industry started FY27 on a strong note, with new business premiums (NBP) increasing 16.6 per cent year-on-year in the April-June quarter, according to a CareEdge Ratings BFSI research report. The growth was driven by strong performance from private insurers, steady demand for retail products, and a recovery in group business.
New Delhi [India], July 10 (ANI): India's life insurance industry started FY27 on a strong note, with new business premiums (NBP) increasing 16.6 per cent year-on-year in the April-June quarter, according to a CareEdge Ratings BFSI research report. The growth was driven by strong performance from private insurers, steady demand for retail products, and a recovery in group business.
The report said the industry's new business premiums reached Rs 1.09 lakh crore in Q1FY27, while private insurers continued to outpace the overall market, strengthening their market share to nearly 40 per cent.
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"India's life insurance industry reported a strong start to FY27, with New Business Premiums (NBP) increasing 16.6% year-on-year (y-o-y) in Q1FY27, reflecting sustained demand across both retail and group segments," the report said. It added that "growth was primarily driven by private insurers, whose premium collections expanded significantly, supported by continued traction in retail products and a recovery in group business."
On a monthly basis, the industry also returned to growth in June after a weak base a year ago. New business premiums rose 13.1 per cent year-on-year to Rs 46,490.5 crore, reversing the 3.1 per cent contraction recorded in June last year.
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According to the report, private insurers led the recovery, with premium collections rising 36.8 per cent year-on-year in June, compared with a modest 1.2 per cent increase for LIC. As a result, the private sector's share of industry new business premiums increased to nearly 40 per cent from 36.5 per cent a year earlier, although LIC continued to account for around 60 per cent of the market.
The report said the recovery was supported by a sharp rebound in group business and continued strength in retail protection and long-term savings products, particularly individual non-single premium policies.
Looking ahead, CareEdge expects premium growth to remain supported by expansion of digital and diversified distribution channels, improving demand for protection and annuity products, and a gradual recovery in group business. However, it cautioned that any regulatory changes relating to bancassurance could prompt insurers to diversify their distribution channels further. (ANI)
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