RBI Grade BNABARD ESISEBI
In one line
Context:
In FY25, the life insurance sector witnessed a 5.13% growth in new business premiums (NBPs), reaching ₹3.97 trillion, compared to ₹3.77 trillion in the previous year. This growth rate reflects a slight improvement over the previous year’s 2% increase.
- Growth in NBP: ₹3.97 trillion (5.13% YoY)
- Previous Year: ₹3.77 trillion (2% YoY growth)
LIC and Private Life Insurers’ Performance
- Life Insurance Corporation of India (LIC):
- NBP Growth: 1.86% YoY growth to ₹2.27 trillion.
- Market Share: LIC held 57% of the market.
- Private Sector Life Insurers:
- NBP Growth: 9.8% YoY growth to ₹1.71 trillion.
- Market Share: Private insurers account for nearly 43% of the market.
Key Players' Performance
- SBI Life Insurance:
- NBP: ₹35,576.67 crore (7% decline).
- HDFC Life Insurance:
- NBP: ₹33,761.94 crore (12.58% growth).
- ICICI Prudential Life Insurance:
- NBP: ₹22,583.49 crore (24.9% growth).
- Axis Max Life Insurance:
- NBP: ₹12,173.41 crore (10.5% growth).
- Bajaj Allianz Life Insurance:
- NBP: ₹12,292.58 crore (6.7% growth).
Regulatory Impact
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- Regulatory Changes: The Insurance Regulatory & Development Authority of India (IRDAI) revised the surrender value norms effective from October 1, 2024, affecting growth across most product categories, particularly in the second half of FY25.
- Group Single Premiums: Growth remained flat amid the current interest rate environment, making insurance products less attractive compared to other investment options.
