Life Insurers’ New Business Premium Up 5.13% in FY25
Why in the news
FY25 data showed the life insurance industry growing slightly faster than the year before, with private players outpacing LIC.
Key facts
- Industry NBP: ₹3.97 trillion (up 5.13%) versus ₹3.77 trillion in FY24, when growth was 2%.
- Individual NBP rose 11.3% to ₹1.67 trillion (from ₹1.5 trillion); group premium rose 1.07% to ₹1.64 trillion.
- Group single premiums stayed flat as the interest rate setting made insurance less attractive than other investments.
- IRDAI’s changed surrender value norms (from October 1, 2024) affected most product lines, mainly in the second half of FY25.
Who gained
| Insurer | FY25 NBP | Change |
|---|---|---|
| LIC | ₹2.27 trillion (57% share) | +1.86% |
| All private insurers | ₹1.71 trillion (about 43%) | +9.8% |
| SBI Life | ₹35,576.67 crore | -7% |
| HDFC Life | ₹33,761.94 crore | +12.58% |
| ICICI Prudential Life | ₹22,583.49 crore | +24.9% |
| Bajaj Allianz Life | ₹12,292.58 crore | +6.7% |
| Axis Max Life | ₹12,173.41 crore | +10.5% |
Outlook
- LIC remains dominant, yet private insurers are gaining pace in individual policies.
- Regulatory changes and interest rates need watching.
Exam angle
- Regulator: IRDAI; norm change: surrender value, October 1, 2024.
- LIC share: 57%.