LIC regains market share in New Business Premiums through group business growth

The Life Insurance Corporation of India (LIC), a state-owned entity, has notably regained its market share in new business premiums (NBP), primarily due to a substantial increase in group premiums. This recovery comes as private insurance companies have lost ground following recent regulatory changes.

Key Highlights:

Market Share Recovery: LIC's market share in Q1FY25 stood at 64.02%, up from 59.59% in Q4FY24 and 61.42% in Q1FY24.

Historical Peak and Decline: LIC's market share peaked at 68.25% in Q3FY23 but saw a gradual decline in subsequent quarters. During this period, private insurers like SBI Life Insurance and HDFC Life Insurance made significant gains.

Impact of Regulatory Changes: Recent regulatory adjustments have adversely affected private insurance companies, allowing LIC to regain its foothold in the market.

This resurgence in LIC's market share underscores its dominant position in the industry and its ability to adapt and recover amidst changing market dynamics.