During the year 2024, the premium of micro life insurance has increased to more than 10 thousand crores. Microinsurance is an insurance that is affordable for low-income people and families. Know how the year 2024 was in terms of life insurance.
The year 2024 was good for the insurance sector. Especially the microinsurance segment has seen a record jump. The Insurance Regulatory and Development Authority of India (IRDAI) has released the annual report for the financial year 2023-24, in which it was told that the New Business Premium (NBP) in the microinsurance segment of life insurance crossed Rs 10,000 crore for the first time. Let us tell you that cheap and affordable
insurance plans come under microinsurance and they are specially designed for low-income people and families. During the financial year 2024, the total NPB has increased to Rs 10,860.39 crore, which was Rs 8,792.8 crore in FY 23. That is, there has been an increase of 23.5 percent.
Personal NBP decreased, group NBP increased
The report also said that individual NBP has decreased by 23.78 percent year-on-year (Y-o-Y). It has come down to Rs 152.57 crore. On the other hand, group NBP is seeing a jump of 24.61 percent year-on-year. Group NBP has increased to Rs 10,707.82 crore. This means that people are buying less insurance personally, while groups or companies are taking insurance policies for low income people.
Private insurance companies have won
Private companies have won in the insurance sector. Private life insurance companies did a business of more than Rs 10,708.4 crore. While the contribution of public sector Life Insurance Corporation of India (LIC) was only about Rs 152 crore.
Despite having more plans, LIC lagged behind
Private insurance companies have collected a group premium of Rs 10,690.73 crore on the basis of 469 plans. On the other hand, despite having 4,993 plans, LIC was able to collect a group premium of only Rs 17.09 crore.
178.39 million people were covered under micro insurance. At the end of FY 24, the number of micro insurance agents was 102,000, of which 19,166 were from the public sector and the rest were from private insurance companies.
Micro insurance offers affordable products to help low-income people deal with financial losses. Hence, its demand is constantly increasing.
