The Indian life insurance industry has reported a 5.1% increase in new premium collection, reaching Rs 3.97 lakh crore in the financial year 2024-2025. This growth was largely driven by Life Insurance Corporation of India (LIC), which collected Rs 2.26 lakh crore in new business premium, including Rs 62,404.58 crore from individual new business. The individual new business premium saw an 11% increase, rising to Rs 1.66 lakh crore from Rs 1.49 lakh crore in the previous year.
The industry’s growth can be attributed to the efforts of insurers to expand access to insurance, as well as the significant addition of new individual life insurance agents. Over 11,15,661 new agents were added in the fiscal year 2024-2025, resulting in a 7.88% growth in the cumulative agent count. This expansion has helped increase insurance penetration, particularly in previously underserved segments of the population.
LIC, in particular, has seen significant growth, with a 8.35% increase in individual new business premium. The company sold 1.78 crore new policies in the fiscal year, despite new surrender value norms coming into effect in October 2024. The introduction of these norms was expected to impact sales, but the industry has adapted and continued to grow.
The Indian life insurance industry is expected to continue growing, driven by the rapid pace of digitization across the sector. As more people become aware of the importance of insurance and have easier access to it, the industry is likely to see sustained growth in new business premiums. The industry’s progress in reaching new milestones in premium collections and expanding its reach is positioning it for future growth.
Overall, the life insurance industry in India is making significant strides, with a growing number of people purchasing insurance policies and the industry adapting to changing regulations and consumer needs. With the continued expansion of insurance access and the growth of the agent network, the industry is well-positioned for sustained growth in the years to come.