Indian life insurers record fourth straight growth in October

First-year premiums jumped 31.9% to $3.07b.

India’s life insurance sector maintains its strength as it posts positive growth for the fourth straight month in October after a YoY decline in premiums back in Q1, according to a CARE Ratings report.

First-year premiums jumped 31.9% to $3.07b (INR22,726 crore) from $2.33b (INR17,272 crore) in October 2019, triggered by a YoY spike in individual insurance premiums.

On a YTD basis, the sector reported a 3.1% increase in first-year premiums to $19.9b (INR1,47,503.7 crore) in October FY2021 from $19.3b (INR1,43,030 crore) in October FY2020. However, the overall sum assured declined by 7.4% from INR25.5 lakh crore in YTD October to INR23.6 lakh crore in YTD October FY2021.

The Life Insurance Corporation of India (LIC) recorded a first-year premium hike of 2.1% in YTD October FY2021, whilst private companies saw a 5.5% hike in the same period.

Individual single premiums grew 243.7% in October 2020 versus a decline of 38.8% in October 2019. These policies have grown 35.6% in YTD October FY2021 driven by the current interest rate scenario.