- Decline in New Business: Life insurers experienced a nearly 22% year-on-year decline in new business in December 2024, totaling ₹30,218.71 crore, attributed to uncertainties over indirect tax levies, tight liquidity, and economic slowdown.
- Performance Comparison: Private insurers outperformed the state-owned LIC, recording a 7% increase in new business to ₹16,694.85 crore, while LIC’s new business fell over 41% to ₹13,523.87 crore, although LIC’s total for the first nine months showed a 7.16% increase.
- Analyst Insights and Future Outlook: Analysts foresee growth moderation due to regulatory changes and increased competition, but remain optimistic about medium-term growth potential in the life insurance sector, projecting a 17-18% growth for private insurers and 4-5% for LIC in the coming years.
Source A2ztaxcorp
