The life insurance industry in India has reported a 2% year-on-year increase in first-year premiums for the month of March, with total collections reaching ₹61,439 crore. This growth is a welcome relief after a weak February, which saw a 12% year-on-year decline in premiums. For the entire financial year 2024-25 (FY25), first-year premiums have increased by 5.1% year-on-year.

Among private insurers, ICICI Prudential Life Insurance has reported an impressive 18% rise in March premiums, with its total annualized premium equivalent (APE) increasing by 32% year-on-year. HDFC Life has also reported a 5% growth in March premiums, with a 6% increase in total APE. Axis Max Life has seen a 1% rise in March premiums, with an 11% jump in total APE.

However, not all insurers have reported positive growth. SBI Life has reported an 11% decline in March premiums, although its total APE has risen by 2% year-on-year. LIC, the largest life insurer in India, has reported a 2% increase in March premiums, but its total APE has declined by 4%.

In February, private insurers had reported a 3% rise in premiums, with their 11-month FY25 premium collections growing by 11% year-on-year. Total APE had risen by 8%, while retail APE had increased by 2% during the same period. HDFC Life had reported a 24% year-on-year growth in February premiums, while ICICI Prudential had seen a 5% rise.

The growth in the life insurance industry is a positive sign, indicating that consumers are increasingly seeking protection and savings products. The industry is expected to continue growing, driven by increasing awareness and demand for life insurance products. However, the decline in premiums reported by some insurers, such as SBI Life, is a cause for concern and may be due to various factors, including intense competition and regulatory changes. Overall, the life insurance industry in India is expected to remain competitive and dynamic, with insurers focusing on innovation, customer engagement, and product development to drive growth.