Overview
The life insurance industry reported 16.3% y-o-y Annual Premium Equivalent (APE) growth in July 2024 on a low base as July 2023 had been a weak month for most life insurance companies as demand had been frontloaded to March 2023. Meanwhile, the growth in the number of individual policies was tepid at 2.7% in July 2024. LIC reported 13.6% APE growth in July 2024 (driven by group premiums), in contrast to the 20.7% decline recorded in July 2023. The two-year (July 22 – July 24) CAGR was 7.5% for the industry, private players stood at 18.8%, while LIC witnessed a decline of 5.1%. Low base effect, increased insurance coverage, increase in ticket sizes and increase in single premium drove the growth in life insurance premiums in the first four months of FY25.
