Following robust growth in FY23, first-year premium numbers in September 2023 witnessed a decline of 15.5%, an improvement from the 18.5% decrease observed in August. This trend was preceded by a more substantial drop of 28.7% in July and compares unfavourably to a 17.3% increase in September 2022.

Several factors contributed to this decline, including a substantial reduction in group premiums,  particularly attributable to LIC, introduction of a new tax regime, and the significant momentum experienced in March 2023. The private insurance sector, however, played a mitigating role by partially counteracting the dip in LIC premiums. While private insurance companies have maintained growth, their pace was comparatively subdued in comparison to the previous year.