Indian Life Insurance Sees Steady Growth in August with Rising Premiums
Indian life insurance companies are on a positive track! In August, new business premiums (NBPs) jumped by 6.01 percent compared to the same month last year. This fresh data from the Life Insurance Council shows the industry is gaining momentum, with total NBPs reaching Rs 1,63,461.52 crore this year—up from Rs 1,54,193.76 crore in August 2024.
What drove this growth? Strong sales of both single and non-single premium policies played a big role. Individual single premiums rose by 9.71 percent, while non-single premiums climbed 4.51 percent. Looking at the year-to-date figures, individual premium collections grew by 6.20 percent overall.
The Life Insurance Council points out that insurers focused more on first-time buyers and expanded their reach through better distribution channels. They even added over 4.37 lakh new individual agents during this period. Despite some agents leaving, the total agent base still grew by 2.75 percent.
Industry experts believe this mix of new agents and fast digitization will help insurance penetration spread across India. "Agent additions, combined with rapid digitization, should boost insurance penetration and keep new business premiums growing strong in FY25 and beyond," the council shared. They predict this positive trend will continue in the coming months.
Adding to the good news, the recent GST Council decision to waive tax on premiums for individual life and health insurance policies could give the sector a huge lift. This move makes policies more affordable, drawing in more customers and supporting long-term growth in the life insurance market.
Experts earlier this week highlighted how this GST rationalization on life and health insurance premiums will improve affordability, increase penetration, and even spark more spending ahead of the festive season. As part of wider GST changes, it merged the 12 percent slab into 5 percent and brought the 28 percent down to 18 percent.
Overall, these developments signal brighter days for India’s life insurance industry, making it easier for more people to get covered.
