Key Highlights
- Overall new business premium climbed 5.13% in FY25, surpassing the 2% rise of the prior year.
- First‑time policyholders drove a remarkable 11.17% surge in individual new business premiums.
- LIC maintained a dominant 57.05% market share, collecting a record ₹62,404 crore in individual premiums.
- Combined individual premium collection grew 4.47% in March 2025, reflecting heightened consumer engagement.
Detailed Insights
In the fiscal year 2024–25, the life insurance industry amassed a total new business premium of ₹3,97,336 crore, an increase of ₹19,376 crore from the previous year’s ₹3,77,960 crore. This growth is attributed to targeted outreach initiatives aimed at first‑time buyers and the expansion of comprehensive coverage plans.
The individual segment, which accounts for a significant portion of the market, recorded ₹1,66,590.81 crore in new business premiums, up 11.17% year‑on‑year. LIC’s contribution of ₹2,26,669 crore to the total new business premium underscores its continued leadership.
Market dynamics indicate that the sector’s focus on digital distribution channels and tailored product offerings has successfully attracted a broader customer base, thereby driving the observed premium mobilization.
Key Concepts
- New Business Premium – The total amount of premiums collected from policies issued during a specific period.
- Individual New Business Premium – Premiums generated from policies sold to individual customers, excluding group or corporate sales.
- Market Share – The proportion of total premiums held by a particular insurer relative to the entire industry.
- Premium Mobilization – The process of converting potential risk exposure into actual premium income.