Published : 18 May 2023
LIC’s new business premium (NBP) dropped by 50.41 YoY to Rs 5,810.1 crore in April 2023 due to a massive decline in group single premium
The new business premium for the entire life insurance sector also fell by 30% in April compared to the previous year. However, businesses in the private sector showed a growth of 8.5%.
The NBP is the annual premium generated by new policies. This gives an idea of the total premium collected from the new businesses and includes the first year's premium and a single premium.
The insurance industry typically experiences a slow start to the fiscal year. Still, this year's sharp decline in premiums is probably related to the government's decision to start taxing high-value insurance products this fiscal year.
From 2023–2024, the Union Budget proposed taxing insurance premiums that exceed Rs 5 lakh annually.