Overview
The life insurance industry reported significantly higher sequential Annual Premium Equivalent (APE) growth of 23.8% y-o-y in September 2024 as compared to 10.5% in August 2024 on a low base as previous months had been weak for most life insurance companies as demand had been frontloaded to March 2023.
Meanwhile, individual non-single policies grew by over 40% in September 2024 with LIC outpacing industry growth at 61.1%. LIC reported 19.3% APE growth in September 2024 (driven by individual premiums), in contrast to the 6.6% decline recorded in September 2023. The two-year (September 22 – September 24) CAGR was 13.0% for the industry, private players stood at 18.8%, while LIC witnessed a growth of 5.6%. Low base effect, sales on traditional policies prior to the implementation of new surrender value norms, increased insurance coverage, increase in ticket sizes and increase in single premium drove the growth in life insurance premiums in H1FY25.
