, India
Stock photo. Credits to Unsplash.

India life insurance first-year premiums bounces back at 15.3% in October

Premiums, however, fell compared to the month before.

First-year premiums in October FY2022 reached $3.06t, a 15.3% year-on-year (YoY) growth compared to the same period last year, according to a report by ratings firm CareEdge.

Following a regular trend, premiums fell sequentially compared to September 2022. The YoY growth can primarily be attributed to group single premiums and more specifically to the Life Insurance Corporation (LIC) of India, whilst growth in individual premiums at the private players too supported growth. 

ALSO READ: India insurance regulator pushes easing of capital requirements

The year-to-date FY2023 first-year premium numbers grew by 34.7% vs. the 4.1% growth reported in the same period last year. The year-to-date FY2023 growth can also be attributed to an increase in group single premiums, and a low base, which saw subdued levels due to the pandemic-induced (Covid-19 second wave) lockdowns.

The overall outlook is expected to be positive in the medium term according to CareEdge.

CareEdge said that insurance demand is positively correlated with economic growth and grows at a multiple to the gross domestic product. The top line of life insurers is anticipated to remain healthy for FY2023 as it would be the first full year without any COVID-19-related restrictions. 

“The growth would be driven by a supportive regulatory landscape, strong demand for annuity and protection plans along with increased persistency levels. Other factors include an intense push to increase insurance coverage, especially in the rural populace, product innovations/customisation, and distribution channels being coupled with digitalised infrastructure for easier user interaction,” CareEdge said.

Join Insurance Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

APAC emerges as leader in renewables insurance
RE is projected to account for 45% of global electricity generation by 2030.
Insurance
IFRC-DREF triggers insurance payout after disaster relief demands exceed threshold
The policy provides up to $16.92m in coverage.The International Federation of Red Cross and Red Crescent Societies' Disaster Response Emergency Fund (IFRC-DREF) has triggered its first-ever insurance payout after disaster relief demands exceeded its deductible threshold. 
Insurance