Page 15 - The Insurance Times January 2025

crore, respectively. While health and crore stipend cost. The scheme seeks to SBI Life Acquires 10%
term insurance premiums attract 18% empower women while addressing
GST, rates for endowment plans vary. insurance penetration gaps across Stake in Bima Sugam
The GST Council has referred proposals India's rural areas. Platform
to exempt health insurance premiums
SBI Life Insurance acquired a 10% stake
for senior citizens and high-coverage PSBs Fall Short of Insurance in Bima Sugam India Federation for Rs.
plans to a Group of Ministers, with
recommendations expected at the Enrollment Targets 6.6 crore, aiming to create a centralized
next council meeting in December. Public sector banks (PSBs) have insurance marketplace. The platform
underperformed in enrolling will streamline policy issuance and
Mixed Trends Emerge in beneficiaries under government enhance accessibility, contributing to
insurance schemes PMSBY and the digital transformation of the
Term Life Insurance
PMJJBY, achieving only 40% and 30% of insurance sector.
Premiums their targets, respectively, for FY25. This investment highlights SBI Life's
Life insurers are adopting divergent While SBI and Indian Bank led with commitment to leveraging technology
strategies on term life insurance 60% and 45% enrollment, other to expand insurance reach and
premiums for FY25. HDFC Life raised banks, like Bank of India and UCO improve customer experience.
premiums by 5% for high-value covers, Bank, lagged at 11% and 10%. These
while SBI Life slashed rates by 8-10% for schemes provide affordable accidental
a new product. LIC introduced a and life insurance but face challenges Vakrangee Partners with
competitively priced term insurance in awareness and execution among Shriram Life Insurance
plan targeting younger customers, with target demographics. Vakrangee Limited has partnered with
premiums 6-7% lower than existing Shriram Life Insurance to expand life
offerings. The varying strategies reflect Slow Utilization of FDI insurance access through its network of
insurers' efforts to balance margins and Limits in Insurance Sector Vakrangee Kendras. This collaboration
market share in the competitive term
insurance segment. Despite the government's proposal to targets underserved areas, enhancing
raise the FDI cap in insurance to 100%, financial inclusion and insurance
LIC Targets Rural Growth companies have utilized only 32.67% penetration across India.
of the current 74% limit. As of March The initiative reinforces Vakrangee's
with Bima Sakhi Yojana 2024, FDI stood at Rs 31,365 crore out
mission to bridge urban-rural service
LIC aims to recruit 3 lakh women agents of the sector's Rs 96,016 crore paid-up
gaps, ensuring essential financial
under the Bima Sakhi Yojana over three capital. Experts argue that while products reach all citizens.
years, focusing on rural and higher FDI could provide growth
underinsured regions. The program, capital, the slow pace of utilization
launched in December, provides raises questions about the sector's GST Council Reviews
monthly stipends of Rs 7,000 in the first readiness to attract substantial foreign Insurance Premium Tax
year, along with commission earnings. investments. The Insurance Bill
LIC expects the initiative to generate introducing these changes is unlikely to Rates
premium income five times the Rs 840 be tabled this session. The GST Council is considering reducing
the 18% tax rate on health and life
Life Insurance Sector Sees 15.67% Growth in New insurance premiums to boost

Premiums affordability and penetration. A
detailed report is expected before the
The life insurance industry recorded a 15.67% growth in new business
Council revisits the proposal.
premiums, reaching Rs 2.42 lakh crore between April and November 2024.
LIC's premiums grew 16.08% to Rs 1.44 lakh crore, while private insurers Stakeholders argue that lower rates
saw a 15.09% increase to Rs 1 lakh crore. Growth was driven by increased could encourage wider adoption of
adoption of first-time life insurance solutions and expanding access to essential financial protection products,
underserved areas. Insurers added over 6.5 lakh agents, with digitalization aligning with the government's
further boosting insurance penetration and premium collections. financial inclusion goals.

14 January 2025 The Insurance Times