Life Insurance Growth: A Positive Trajectory in FY25

Life insurers in India saw a 5.1% rise in new business premium collections, reaching Rs 3.97 lakh crore in FY25, driven by individual premium growth and digital advances. LIC led the charge, despite regulatory changes, as the industry welcomed new agents and improved access to insurance.

The life insurance industry in India marked a successful run in the financial year ending March 2025 with a notable 5.1% increase in new business premium collection to Rs 3.97 lakh crore, as per Life Insurance Council data.

Notably, the individual new business premium observed an 11% growth spurt, moving up to Rs 1.66 lakh crore from the previous Rs 1.49 lakh crore.

Amid the positive growth, LIC led the industry by securing Rs 2.26 lakh crore in total new business premiums, including Rs 62,404.58 crore solely from individual new ventures. Despite the introduction of new surrender value norms, the company sold 1.78 crore new policies.

The industry's trajectory can be attributed to the rapid digitalisation driving insurance penetration and the onboarding of over 11 lakh new agents, marking a significant expansion in access and setting the stage for future growth.

Overall, the sector made laudable progress in reaching underserved population segments and setting new benchmarks in premium collections.

(With inputs from agencies.)