Page 14 - The Insurance Times January 2025

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issuances. LIC plans to invest Rs 1.3
Life Insurance Premiums Decline by 4.5% in trillion in equities this fiscal year,
November amid LIC decline signaling its commitment to diversify

New business premiums (NBP) in the life insurance sector fell by 4.5% year- investments and leverage emerging
on-year in November 2024 to Rs 25,306.56 crore, primarily due to a 27.17% opportunities in the financial markets.
decline in Life Insurance Corporation's (LIC) premiums, according to data
from the Life Insurance Council. LIC's NBP dropped to Rs 11,751.11 crore, LIC's Unclaimed Maturity
while private insurers recorded a significant 30.84% growth to Rs 13,555.45 Amount Surges to Rs 881
crore, offsetting the overall decline.
Crore in FY24
The decline follows revised surrender value norms introduced in October,
requiring insurers to pay enhanced special surrender values after one year. LIC reported Rs 880.93 crore in
LIC's individual premiums fell by 5.66% to Rs 4,021.87 crore, while group unclaimed maturity benefits in FY24,
premiums dropped 35.37%. However, private sector growth indicates the with 372,282 policyholders failing to
industry's adaptation to the new regulations, with premiums expected to claim their dues, according to the
stabilize in the coming months. Ministry of Finance. This marks an
increase from Rs 815.04 crore in FY23.
To address this, LIC has launched
LIC's Bima Sakhi Scheme development officers. LIC expects to extensive outreach efforts, including
generate five times the premium print and digital campaigns, SMS
Targets Women Agents income compared to the Rs 840 crore alerts, and follow-ups through agents.
The Bima Sakhi scheme launched by stipend cost in the first year, aiming to The claim settlement process has been
LIC aims to boost women's address unemployment and strengthen simplified, requiring only valid NEFT
participation as insurance agents, with its presence in rural areas. details. LIC continues to emphasize
plans to recruit 25,000 women in its timely claim processing to reduce
initial phase and 2 lakh over the next unclaimed amounts.
three years. Currently, women LIC Enters REIT Market with
constitute 28% of LIC's agent Brookfield Investment GST on Insurance Premiums
workforce, up from 6 lakh in 2017 to Life Insurance Corporation (LIC) made
7.5 lakh in 2023. its first foray into the Real Estate Yields Rs 52,000 Crore in
Eligible candidates, aged 18-70 and Investment Trust (REIT) market by Five Years
educated up to Class 10, will receive participating in Brookfield India REIT's The government collected over Rs
stipends of Rs 7,000, Rs 6,000, and Rs Rs 2,800 crore qualified institutional 52,000 crore in GST from insurance
5,000 per month over three years, placement. This move is seen as a premiums over the past five years, with
along with commission-based earnings. milestone for India's REIT market, health and life insurance accounting
Graduates may also qualify as potentially encouraging more for Rs 29,000 crore and Rs 23,000

The Insurance Times January 2025 13