LIFE INSURANCE CORPORATION OF INDIA EMERGES AS LEADER
OLDWICK, N.J. //BestWire// – The latest report from AM Best reveals that the Life Insurance Corporation of India (LIC) has firmly established itself as the nation’s leading insurer for 2023, based on its gross premiums written (GPW).
LIC’s impressive GPW totalled $57.09 billion, paired with a capital and surplus amounting to $9.83 billion, underscoring its significant presence in the market.
In a country with over 1.4 billion residents, LIC wasn’t the only player making headlines; the life insurance sector dominated the rankings, filling the top five spots.
SBI Life Insurance Co. Ltd. clinched second place, achieving a GPW of $9.77 billion, supported by a capital and surplus of $1.79 billion.
Close behind in third, HDFC Life Insurance Co. Ltd. reported a GPW of $7.57 billion, with a capital and surplus of $1.76 billion.
Kshema General Insurance Co. Ltd., which focuses on crop insurance, took fourth place, becoming the only non-life insurer in the top tier, with a GPW of $6.82 billion and a capital and surplus of $1.8 billion.
Rounding out the top five, ICICI Prudential Life Insurance Co. Ltd. posted a GPW of $5.19 billion and a capital and surplus of $1.32 billion in 2023.
PROSPECTS FOR FUTURE GROWTH
Additionally, AM Best’s report, published on January 16, highlights a positive trajectory for the Indian non-life insurance sector.
This growth is attributed to recent regulatory reforms and a rising demand for various insurance products.
Favorable investment returns, driven by high interest rates and a buoyant equity market, play a crucial role in this optimistic outlook.
While regulatory oversight is enhancing cost management, challenges remain, particularly in the form of persistent underwriting losses and recent regulatory changes affecting policy wording.
Despite these hurdles, the report emphasizes that India’s continued economic growth could positively impact the non-life insurance segment.
The economy saw an 8.2% expansion in FY 2024, largely fueled by government spending on infrastructure projects and increased household expenditures.
Although indicators suggest a potential slowdown, experts believe that monetary and fiscal strategies will sustain long-term economic growth.
AM Best’s rankings, concentrating on GPW and capital and surplus figures from 2023, provide a thorough perspective on the Indian insurance landscape, highlighting both its strengths and the challenges ahead.
Source: Ambest