Life insurance companies’ premium income reaches Rs 7.83 lakh crore

In the fiscal year 2023, life insurance companies in India witnessed a 12.98 per cent growth in premium income, reaching Rs 7.83 lakh crore, as highlighted in the annual report released by the Insurance Regulatory and Development Authority of India (Irdai) on Wednesday. Concurrently, general insurers experienced a growth of 16.4 per cent, amounting to Rs 2.57 lakh crore in premiums.

The private sector within the life insurance domain showcased a growth rate of 16.34 per cent, while their public counterparts observed a 10.90 per cent uptick in premiums. Renewal premiums constituted a majority share of 52.56 per cent, with the remaining 47.44 per cent attributed to new business premiums. Notably, new business premiums outpaced renewal business, growing at 17.90 per cent compared to 8.88 per cent.

Throughout 2022-23, the issuance of 284.70 lakh new policies transpired in the individual business segment. Of these, public sector insurers contributed 204.29 lakh policies, while private life insurers accounted for 80.42 lakh policies. The profitability of the life insurance sector surged significantly, with post-tax profits escalating over five-fold to Rs 42,788 crore from the previous fiscal's Rs 7,751 crore.

Breaking down the figures, public sector insurers reported an astounding 800 per cent profit growth, whereas private insurers collectively saw a 72.36 per cent increase in profits. The industry's gross management expenses for 2022-23 totalled Rs 1.31 lakh crore, equivalent to 16.88 per cent of the gross premium.

Shifting the focus to the non-life insurance sector, it recorded a direct premium of Rs 2.57 lakh crore, marking a 16.40 per cent growth from the prior year. Private sector general insurers dominated with a 61.58 per cent market share, whereas public sector entities held 38.42 per cent. Despite this growth, underwriting losses for non-life insurers marginally increased by 3.11 per cent to Rs 32,797 crore.

Furthermore, as outlined by the Swiss Re Sigma Report, India's insurance penetration slightly declined to 4 per cent in 2022-23 from 4.2 per cent in the preceding fiscal year. Specifically, life insurance penetration decreased to 3 per cent, while non-life insurance remained static at 1 per cent.

(With PTI inputs)