In a first, the premiums collected in the life micro-insurance sector sailed past Rs 10,000 crore for in FY24, industry data has revealed. Micro insurance refers to a category of insurance policy which is meant for people at the lower rung of the economic pyramid. These can offer protection against sudden mishaps in health, accidents and/or damage to assets.
According to reports, data from IRDAI (Insurance Regulatory and Development Authority of India), new business premium in life insurance’s micro-insurance segment touched a high of Rs 10,860.39 crore in the last financial year (FY24). This figure was a considerable 23.5% jump from the figure in FY23 which was Rs 8,792.8 crore.
Group new business premium collection zooms
Combing the data further it was seen that while new business premium for individuals went down in FY24 (over FY23) by 23.78% to Rs 152.57 crore, there was a rise in the group new business premium. It rose 24.61% in FY24 (compared to FY23) and touched Rs 10,707.82 crore.
In FY24, there were 102,000 micro-insurance agents, IRDAI data showed. As many as 19,166 – or 18.79% of them – worked for the public-sector life insurers. The rest were associated with the private sector players. Data from the insurance regulator also showed that non-government organisations (NGOs) constitute 4.49% of the agents, self-help groups 0.25% MFIs (microfinance institutions) 0.24% business correspondents 0.12% and ‘others’ constituted 94.90%.
What is PMJJBY and its benefits
The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) that was kicked off in May 2015, accounted for more than 21 crore beneficiaries, it was reported. Under this plan, the family of the person covered will get Rs 2 lakh in case of death of the insured individual. While as many as 21.67 crore enrolled in PMJJBY till October 20, the total number of claims stood at 860,575, which amount to a total value of Rs 17,211.50 crore. The insurance sector in India is one of the active sectors which clocked a CAGR (compounded annual growth rate) of 11% between FY20 and FY23. By the way, a growth rate of less 5% was noticed in the same sector of Thailand and China.
Micro-insurance premium in the life insurance sector collected in FY24 in India exceeded Rs 10,000 crore for the first time. Micro- insurance is a type of insurance policy meant for people at the lower rung of the economic pyramid. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
