Life Insurance Corporation of India (LIC), the nation’s largest life insurer, reaffirmed its leadership in 2024 by outpacing both the industry average and private insurers in new business premium (NBP) growth.

Data from the Life Insurance Council shows that LIC recorded a 14.64 percent year-on-year (YoY) growth in NBP, surpassing the insurance industry’s 14.41 percent growth and private life insurers’ 14.55 percent increase. LIC’s premium collections rose to ₹2,33,073.36 crore in 2024, up from ₹2,03,303 crore in 2023. The overall life insurance industry collected ₹4,02,773.18 crore, while private life insurers garnered ₹1,69,699.83 crore.

Segment-Wise Performance

LIC’s Individual Premium segment grew by 4.92 percent y-o-y to ₹61,365.75 crore, up from ₹58,486.69 crore in 2023. The Group Premium segment showed stronger growth, expanding by 18.22 percent to ₹1,69,240.45 crore from ₹1,43,152.75 crore. Group Yearly Premiums also surged 48.31 per cent, reaching ₹2,467.14 crore compared to ₹1,663.55 crore in the previous year.

However, the number of policies issued declined. LIC issued 1.96 crore policies in 2024, down 2.72 percent from 2.01 crore in 2023. Individual policies fell to 1.95 crore, while Group Yearly Renewable Policies dropped to 29,968. Group Schemes and Policies bucked the trend, rising 14.57 percent to 6,362.

December 2024 Performance

LIC’s December 2024 results were mixed. The Individual Premium segment declined marginally by 0.77 percent, collecting ₹5,150.75 crore compared to ₹5,111.52 crore in December 2023. The Group Premium segment saw a sharp 53.75 percent drop, falling to ₹8,238.67 crore from ₹17,812.46 crore. However, Group Yearly Premium Collections increased significantly, rising 134.67 percent to ₹134.44 crore from ₹57.29 crore.

The number of policies issued in December 2024 fell 19.85 percent y-o-y to 21.24 lakh, down from 26.50 lakh in December 2023. The Individual Category saw a steeper decline of 31.61 percent, while Group Yearly Renewable Policies dropped 24.87 percent. Group Schemes and Policies rose modestly by 4.13 percent.

Bima Sakhi Scheme Success

LIC’s Bima Sakhi scheme, aimed at empowering women as licensed insurance agents, gained traction in 2024. Within a month of its launch, 52,511 women registered, with 27,695 receiving appointment letters and 14,583 starting to sell policies.

This initiative aligns with LIC’s strategy to enhance penetration in rural and semi-urban markets, further solidifying its leadership in India’s competitive life insurance sector.

Driving Industry Leadership

LIC’s performance in 2024 underscores its dominance in India’s life insurance sector, even as competition from private insurers intensifies. Its ability to grow its NBP at a rate exceeding the industry and private peers highlights its continued appeal among policyholders, particularly in the Group Premium segment, life insurance industry observers noted.

The decline in the number of policies issued suggests LIC is focusing on high-value products rather than sheer volume, a strategy that aligns with its efforts to boost profitability and improve operational efficiency, they said.

Moreover, LIC’s commitment to innovation, as seen in the Bima Sakhi initiative, is helping the insurer adapt to changing customer preferences and regulatory landscapes. The emphasis on digital channels, agent empowerment, and tailored products positions LIC to maintain its edge in the evolving insurance market.