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The Life Insurance Corporation (LIC) of India held approximately ** percent of the market share of the sector’s total insurance premiums in financial year 2021. LIC is the only public sector insurance company in India. Private players entered the sector only in the year 2000. The share of premiums held by LIC is far higher compared to the more than twenty other private life insurers.

Life insurance sector overview

Life insurance has been one of the fastest growing segments in India’s insurance market and recorded a premium income of over *** trillion Indian rupees in fiscal year 2020. Of this, LIC had written premiums that amounted to around *** trillion Indian rupees. On the other hand, private sector insurers earned written premiums valued at nearly *** trillion rupees. Written premiums show the total amount that customers are required to pay for their insurance coverage for policies already in effect. These make up the principal source of an insurance company’s revenue and are deemed vital to growth.

Private versus public insurers

In 2020, LIC issued nearly ** million new individual insurance policies, compared to around million new policies issued by private players. However, private life insurance companies like HDFC and SBI have been recording strong growth in terms of premium income.