Page 44 - The Insurance Times February 2025

Critical Analysis

Critical Analysis of the Business Performance of

Life Insurers in India (2023-24)

Overview derwriting 69.89% of new policies, though it expe-
rienced a marginal decline of 0.18%.
The Indian life insurance industry demonstrated steady
growth in premium income, reflecting resilience and adapt- Private insurers showed a 9.23% growth in policy
ability amidst evolving market conditions. Total premium issuance, indicating effective strategies in attract-
income for the sector reached ?8.30 lakh crore, growing by ing new customers.
6.06% compared to the previous fiscal year. Private sector
insurers outperformed the public sector with a premium 3. International Business
growth of 15.05%, while the public sector recorded a neg- LIC remains the sole Indian life insurer operating
ligible increase of 0.23%. internationally, with a modest premium income of
Rs. 476.25 crore, marking an increase from the pre-
Key Highlights vious year.

1. Premium Growth and Contributions 4. Claims and Benefits Paid
Renewal Premium vs. New Business Premium: Death claims grew marginally by 1.99%, while ma-
o Renewal premiums contributed 54.41% of the turity and surrender claims witnessed significant in-
total premiums, showing a robust growth of creases, indicating higher payouts to policyholders.
9.79%.
Total benefits paid rose by 16.14% to ?5.77 lakh
o New business premiums grew by 1.93%, high- crore, with notable growth in maturity benefits
lighting challenges in acquiring new custom- (13.96%) and surrender/withdrawal claims
ers. (15.25%).
Segment-wise Contribution:
o Non-linked products dominated with 85.36% Critical Analysis
of total premiums, while linked products con- Strengths
tributed 14.64%. Consistent Growth: The 6.06% growth in total
o Linked products grew by 15.73%, significantly premiums underlines the life insurance sector's re-
outpacing non-linked product growth at silience. Private insurers continue to gain market
4.56%. share, reflecting their adaptability and innovative
offerings.
Single Premium Products:
o The public sector heavily relied on single pre- Renewal Premiums: A 9.79% growth in renewal
mium products, contributing 38.6% to their premiums suggests high customer retention and
total premium, compared to 22.38% in the trust in existing policies.
private sector. Segment Diversification: The rise in linked prod-
uct premiums by 15.73% reflects growing con-
2. Market Share and Policy Issuance sumer interest in market-linked policies, aligning
LIC retained its dominance in policy issuance, un- with investment trends.

40 February 2025 The Insurance Times