Page 17 - The Insurance Times May 2025

respondents remained unaware of its and stronger profitability metrics, Industry analysts noted that while the
benefits, and only 9.6 per cent owned driven by a resilient domestic economy pace of growth was moderate, strong
a policy. However, the survey noted and supportive policy measures. performance in the individual premium
growing interest in term products segment provided some optimism for
among younger demographics. Life Insurers' New Business the sector going forward.

Premium Grows Marginally
LIC Raises Stake in Bank of LIC Refutes USTR Allega-
by 5% in FY25
Baroda to Over 7% tions of Unfair Advantage
Life insurance companies in India
The Life Insurance Corporation of India in Indian Insurance Market
posted a modest 5.1 per cent rise in
(LIC) has increased its stake in state- Life Insurance Corporation of India
new business premium collections to
owned Bank of Baroda (BoB) to 7.05 Rs 3.97 lakh crore during FY25, (LIC) has refuted allegations by the
per cent, up from 5.03 per cent earlier, compared to Rs 3.77 lakh crore in FY24, United States Trade Representative
according to a regulatory filing. according to data released by the Life (USTR) that it enjoys an unfair
competitive advantage due to
LIC acquired an additional 10.45 crore Insurance Council.
government support.
shares through open market purchases Individual new business premium
between November 20, 2023, and increased to Rs 1.66 lakh crore, In a formal statement, LIC clarified,
April 16, 2025. The insurer's decision marking an 11 per cent rise over Rs "The statutory guarantee provided at
to increase its shareholding is seen as 1.49 lakh crore collected in the its establishment in 1956 was designed
a strategic move to enhance its previous year. to build public confidence during
presence in the banking sector. nationalisation and has never been
State-owned Life Insurance Corporation invoked or used as a marketing tool or
Bank of Baroda, one of India's largest (LIC) contributed Rs 2.26 lakh crore to provided any undue advantage."
public sector banks, continues to show the industry's new business premium The insurer further emphasised that it
steady performance across key during FY25, with Rs 62,404.58 crore operates in a fully competitive market
metrics, making it an attractive coming from individual new business. alongside 24 private life insurance
investment for large institutional Despite challenges such as the companies, adhering to the same
investors like LIC. introduction of new surrender value regulatory standards enforced by the
The increased stake by LIC comes at a norms from October 2024, LIC Insurance Regulatory and Development
time when the broader banking sector managed to sell 1.78 crore new policies Authority of India (IRDAI) and the
is witnessing robust growth in credit during the year, indicating continued Securities and Exchange Board of India
offtake, improvements in asset quality, consumer confidence in its offerings. (SEBI).
The rebuttal came in response to the
USTR's 2025 National Trade Estimate
LIC's New Business Premium Rises 2% to Rs 2.27 Report, which claimed that "the Indian
Lakh Crore in FY25 government's explicit sovereign

Life Insurance Corporation of India (LIC) recorded a New Business Premium guarantee on every LIC policy results
(NBP) of over Rs 2.27 lakh crore in FY25, registering a growth of 1.86 per in customers choosing LIC over private
insurers," thereby creating an "unfair
cent over Rs 2.22 lakh crore collected in FY24, according to data from the
Life Insurance Council. competitive advantage."
This includes a record Rs 62,405 crore from individual new businesses, with
individual new business premiums growing by 8.35 per cent year-on-year. Join
However, group premium collections dipped marginally by 0.40 per cent to
Rs 1,64,265.34 crore from Rs 1,64,925.89 crore a year earlier. Online Certificate
During FY25, LIC sold 1.78 crore new policies, despite the introduction of Course on
new surrender value norms effective from October 1, 2024. In March 2025 Motor Insurance
alone, LIC's individual premium segment rose 10.75 per cent to Rs 10,022
crore, up from Rs 9,048.87 crore in March 2024. Meanwhile, the group For details please visit
premium segment declined by 1.34 per cent to Rs 26,885.33 crore. www.smartonlinecourse.co.in

16 May 2025 The Insurance Times