Are life insurers experiencing a 6% rise in new business premiums for August?
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Synopsis
Discover the impressive growth of Indian life insurance companies as new business premiums soar by 6.01% in August. This surge is driven by increased individual premiums and a strategic focus on first-time buyers, promising sustained momentum in the sector. With recent GST changes, the industry anticipates further growth and improved affordability for consumers.
Key Takeaways
- NBPs rose by 6.01% in August.
- Growth driven by both single and non-single premiums.
- Over 4.37 lakh new agents were added.
- GST changes are expected to boost customer interest.
- Sustained growth is anticipated into FY25.
New Delhi, Sep 9 (NationPress) Indian life insurance firms have exhibited consistent growth in August, with new business premiums (NBPs) increasing by 6.01 percent in comparison to the same month last year, according to a recent report released on Tuesday.
Data from the Life Insurance Council indicated that NBPs reached Rs 1,63,461.52 crore in August this year, up from Rs 1,54,193.76 crore in August 2024.
This growth was bolstered by a rise in sales of both single and non-single premium policies.
Individual single premiums saw an increase of 9.71 percent, while individual non-single premiums rose by 4.51 percent during the month.
On a year-to-date (YTD) basis, individual premium collections experienced a growth of 6.20 percent.
The council noted that the industry's expansion was fueled by a heightened focus on first-time insurance buyers and an expanded distribution network.
During this period, life insurers recruited over 4.37 lakh new individual agents. However, due to attrition, the overall agent base saw a growth of 2.75 percent.
Officials within the industry stated that a mix of agent recruitment and swift digitization will further enhance insurance penetration throughout the country.
"The addition of agents, coupled with the rapid pace of digitization, is expected to significantly bolster insurance penetration, maintaining momentum for new business premiums in FY25 and beyond," the council mentioned.
They anticipate this momentum to continue in the upcoming months and into FY25.
The sector is also poised for a significant uplift following the GST Council's recent decision to waive taxes on premiums for individual life and health insurance policies, which is likely to draw in more customers and promote long-term growth.
In the meantime, experts have indicated that the GST rationalization on life and health insurance premiums will markedly enhance affordability, strengthen penetration, and stimulate consumption leading into the festive season.
This change is part of a broader GST rationalization initiative that merged the 12 percent slab with 5 percent and reduced the 28 percent rate to 18 percent.
Point of View
The recent growth in new business premiums in the life insurance sector highlights a promising trend in financial security for Indian citizens. The increase in individual premiums and the proactive measures taken by insurers to attract new clients signify a positive shift in consumer behavior and industry dynamics. As we embrace these changes, it is essential to ensure that this growth translates into tangible benefits for policyholders across the nation.
NationPress
09/09/2025
Frequently Asked Questions
What is the percentage increase in new business premiums for August?
The new business premiums (NBPs) for August rose by 6.01% compared to the same month last year.
What contributed to the growth in premiums?
The growth was supported by higher sales of both single and non-single premium policies.
How many new agents were added in the insurance sector?
Life insurers added over 4.37 lakh new individual agents during the period.
What impact will the GST changes have on the insurance sector?
The GST Council's decision to waive taxes on premiums is expected to attract more customers and improve long-term growth.
What is the expected trend for the coming months?
Experts anticipate that the momentum in new business premiums will continue into FY25 and beyond.
