According to ICRA, the new business premium (NBP) for the life insurance market is anticipated to increase by 1113 percent to Rs. 4.494.66 lakh crore in FY25, from Rs. 3.71 lakh crore in FY23, and by 912 percent to Rs. 4.064.14 lakh crore in FY24.
The gross premium written (GPW) is anticipated to rise from Rs. 7.86 lakh crore in FY23 to Rs. 8.568.64 lakh crore in FY24 and Rs. 9.379.55 lakh crore in FY25 due to a consistent increase in renewal premium revenue.
"The private sector is still driving development in both individual and group companies, notwithstanding the decline in NBP for LIC's group business. As a result, Neha Parikh, Vice President and Sector Head of Financial Sector Ratings, stated, "We anticipate that the NBP expansion for the private sector will keep up with the industry growth."
The NBP expansion for private life insurers was estimated by ICRA to be 13.16% to 1.571.59 lakh crore in FY24 and 14.16% to 1.801.87 lakh crore in FY25. Additionally, their market share in NBP is anticipated to rise from 37% in FY23 to 40% by FY25.
The industry's individual net benefit per share (NBP) increased 15.4% year over year in FY23 to Rs. 1.45 lakh crore, partially due to the noteworthy rise in the assured nonpaticipating person segment.
The imposition of taxes on the returns from these insurance if the yearly premium paid was more than Rs. 5 lakh was another factor in the expansion. According to ICRA's report, this adjustment took effect in April 2023 and resulted in a significant premium rise in FY23.
