Life Insurers Experience 11% Growth in New Premium Collection for April-May 2025

Life insurers in India have seen a notable rise in new business premium collections, with a 10.8% increase in the first two months of the current fiscal year. According to the Life Insurance Council, May 2025 alone witnessed a 12.6% growth, with collections reaching Rs 30,463 crore compared to Rs 27,034 crore in May 2024.

Representative image

The cumulative collection for April and May 2025 amounted to Rs 52,427 crore, up from Rs 47,293 crore during the same period last year. This growth is largely due to insurers focusing on first-time buyers and promoting essential life insurance solutions. This strategy contributed to a 3.35% rise in individual premium collections for May 2025 and a 2.46% increase on a year-to-date basis.

Focus on Individual Premiums

Data from the council highlighted a 5.21% year-on-year growth in individual single premiums for May 2025, closing at Rs 3,525 crore. The growth rate for April-May stood at 4.89%. This indicates a steady interest among individuals in securing life insurance policies.

LIC, India's largest life insurer, reported a significant increase in its new business premium collections. In May 2025, LIC's new business premium grew by 10.27%, reaching Rs 18,405.04 crore compared to Rs 16,690.39 crore in May of the previous year.

Group Premiums Show Strong Growth

Group premiums also saw substantial growth during this period. LIC recorded a 13.79% increase in group premiums for May 2025. For the first two months of fiscal year 2026, group premiums grew by 13.66%, showcasing robust performance in this segment as well.

This overall strong performance by life insurers reflects their strategic focus on expanding their customer base and enhancing product offerings to meet diverse needs. The emphasis on attracting first-time buyers has been particularly effective in driving growth across different premium categories.

The data underscores the resilience of the life insurance sector amid changing market dynamics and highlights the importance of targeted strategies in achieving sustainable growth.

With inputs from PTI