New Delhi [India], December 16 : The life insurance market in India has witnessed a marked shift over time, with private sector players firmly asserting their presence, a recent report by Motilal Oswal Financial Services said.
From FY15 onwards, growth resumed as insurers adapted to the new regulatory environment and diversified their product mix and channels.
Motilal Oswal also said the recent GST exemption on life and health insurance premium remained a huge boost for market growth.
Private sector Annual Premium Equivalent (APE) recovered to Rs 250 billion in FY15 and increased steadily to Rs 286 billion in FY16, Rs 349 billion in FY17 and Rs 407 billion in FY18, the report highlighted.
The expansion continued in the following years, with APE rising to Rs 463 billion in FY19, Rs 505 billion in FY20 and Rs 546 billion in FY21.
Growth was supported by the scale-up of bancassurance, digitisation of channels, and rising protection awareness, particularly after the Covid-19 pandemic, it said.
Private sector APE reached Rs 663 billion in FY22, surged to Rs 818 billion in FY23 and Rs 888 billion in FY24, and is projected to increase further to Rs 1,038 billion in FY25.
In the general insurance segment, premium growth has consistently outpaced nominal GDP growth.
The pace of growth of the Gross Written Premium (GWP) accelerated from FY17 onwards.
Total GWP rose to Rs 1,281 billion in FY17, Rs 1,507 billion in FY18 and Rs 1,694 billion in FY19.
Despite economic disruptions, premium growth remained resilient, increasing to Rs 1,889 billion in FY20 and Rs 1,987 billion in FY21.
The upward trend continued in the post-pandemic period, with GWP reaching Rs 2,207 billion in FY22, Rs 2,569 billion in FY23 and Rs 2,897 billion in FY24.
Premiums are projected to rise further to Rs 3,077 billion in FY25, the report said.
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