Life Insurance Micro-Insurance Premiums Surpass Rs 10,000 Crore in India
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New Delhi, Dec 26 (NationPress) The micro-insurance premiums in the life insurance domain of India have crossed Rs 10,000 crore for the first time in FY24, based on industry statistics.
Micro-insurance is designed to assist individuals in the low-income bracket by providing cost-effective products.
As per the data released by the Insurance Regulatory and Development Authority of India (IRDAI), the new business premium (NBP) in the micro-insurance segment for life insurance reached Rs 10,860.39 crore in FY24, marking a 23.5 per cent increase from Rs 8,792.8 crore in FY23.
While the individual NBP saw a decline of 23.78 per cent to Rs 152.57 crore, the group NBP experienced a rise of 24.61 per cent to Rs 10,707.82 crore.
The IRDAI's data indicates that the total number of micro-insurance agents stood at 102,000 in FY24. Out of these, approximately 19,166 are affiliated with public-sector life insurance companies, while the remainder are from private sectors.
In terms of distribution among micro-insurance agents, non-government organizations (NGOs) account for 4.49 per cent, self-help groups for 0.25 per cent, microfinance institutions for 0.24 per cent, and business correspondents for 0.12 per cent, with others making up 94.90 per cent, as per the data.
Additionally, over 21 crore individuals have gained benefits from the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) scheme, which offers life insurance coverage.
The PMJJBY, initiated in May 2015, is a term life insurance plan. Under this scheme, in the event of death for any reason, the insured's family receives Rs 2 lakh.
The scheme has seen a total enrollment of 21.67 crore as of October 20. In contrast, the cumulative claims have reached 860,575, amounting to Rs 17,211.50.
Reports indicate that India’s insurance sector recorded a strong 11 per cent compound annual growth rate, surpassing the $130 billion threshold during FY2020-23, outpacing Asian counterparts like China and Thailand, which grew at rates below 5 per cent.
The McKinsey report highlighted that while India’s life insurance industry expanded to $107 billion as of 2023, the general insurance sector reached $35.2 billion.
Factors such as a burgeoning middle class, increased awareness, rising healthcare expenses, and favorable regulations have collectively provided significant growth opportunities for India’s insurance sector over the past few years, the report noted.
