However, the number of life insurance policies sold in the month fell 10.4% from a year earlier as the industry continued to navigate the new surrender value guidelines that came into effect in October last year.
The new premium growth was primarily driven by private sector insurers, which reported a 16.6% increase to ₹12,058 crore. State-run Life Insurance Corporation posted a 10.3% increase at ₹18,405 crore.
Among listed private players, HDFC Life reported a 33% jump in total premiums to ₹3,022 crore, while SBI Life’s premiums grew more than 25% to ₹2,950 crore. ICICI Prudential Life reported near 7% growth to ₹1,407 crore.
“Typically, the first quarter is a weak season for the life insurance segment as it immediately comes after the fiscal end, where most retail customers rush to buy policies. In May, the YoY growth has come down compared to 15.1% in the same month a year ago mainly because of the impact of revised surrender value guidelines,” said Saurabh Bhalerao associate director, BFSI Research at CARE Ratings. In May, the industry growth was led by group business, even as the individual business segment reported a muted number. Group single premium collections grew 13% YoY to ₹18,068 crore.
On volume, in the individual non-single segment-the regular premium paid by retail customers-fell more than 10% with LIC and private life insurers reporting a decrease of 14% and 2%, respectively.Despite the fall in volume in individual non-single premium segments, private insurers reported premium growth, indicating they have moved to higher value policies, Bhalerao said. The Life Insurance Council data shows that LIC’s individual non-single premium income fell to ₹2,060 crore in May compared to ₹2,236 crore in the same month a year ago.
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