Insurance: The year 2024 proved to be favorable for the insurance industry. Particularly the microinsurance sector has experienced a significant surge. The Insurance Regulatory and Development Authority of India (IRDAI) has published the annual report for the financial year 2023-24, revealing that the New Business Premium (NBP) in the microinsurance sector of life insurance surpassed Rs 10,000 crore for the first time.
Low-cost and budget-friendly insurance policies fall under microinsurance
We want to inform you that low-cost and budget-friendly insurance policies fall under microinsurance, which are specifically created for low-income individuals and families. In the financial year 2024, the total NPB has risen to Rs 10,860.39 crore, compared to Rs 8,792.8 crore in FY 23. In other words, there has been a rise of 23.5 percent. The report also indicated that individual NBP has fallen by 23.78 percent year-on-year (YoY).
It has decreased to Rs 152.57 crore. Conversely, group NBP has experienced an increase of 24.61 percent compared to the previous year. The Group NBP has risen to Rs 10,707.82 crore. This indicates that individuals are purchasing fewer personal insurance policies, whereas organizations or companies are acquiring insurance plans for low-income individuals.
Private insurance firms have taken the lead
the insurance industry. Private life insurance firms conducted business amounting to over Rs 10,708.4 crore. The contribution from the public sector Life Insurance Corporation of India (LIC) was merely around Rs 152 crore.
Private insurance firms have gathered a collective premium of Rs 10,690.73 crore through 469 schemes. Conversely, with 4,993 plans, LIC managed to gather a total group premium of merely Rs 17.09 crore.
Notable numbers related to micro insurance coverage
178.39 million individuals had micro insurance coverage. By the conclusion of FY24, there were 102,000 micro insurance agents, with 19,166 sourced from the public sector and the remainder from private insurance firms.