Life Insurance Recap: Key Highlights and Updates

As the year 2024 ended on a sweet note, let’s recap the updates in the life insurance sector in India. This edition of our weekly newsletter will uncover facts, data, transformations, developments, updates, and everything that happened in the life insurance sector.

*Data and Figures of the Life Insurance Sector in 2024

• NUMBER OF LIFE INSURERS REGISTERED IN 2024?? 26

• NEW LIFE INSURERS REGISTERED IN 2024?? 1

• TOTAL LIFE INSURANCE PREMIUM?? ? 8,29,929 CRORE

• TOTAL LIFE INSURANCE CLAIMS SETTLED?? ? 5,77,021 CRORE (70% of NET PREMIUMS)

• TOTAL ASSETS UNDER MANAGEMENT?? ? 61,56,850 CRORE

• BENEFITS OFFERED ON ACCOUNT OF SURRENDER/ WITHDRAWAL?? ? 2,29,000 CRORE

• LIFE INSURANCE PENETRATION IN 2024 ?? 2.8

• LIFE INSURANCE DENSITY IN 2024?? $70

Developments in the Life Insurance Sector in 2024

• Introduction of an AI-based conversation platform using machine learning.

• Introduction of Voice Analytics using Artificial Intelligence.

• Underwriting Co-Pilot for system-driven checks.

• Use of LLM models for document summarization and important information extraction.

• Introduction of claim fraud detection model to detect the fraud claims received.

Transformations in the Life Insurance Sector in 2024

• Extended free look period for life insurance policies (From 15 to 30 days).

• Faster refund processing for policies cancelled in the free-look period.

• Mandatory nomination for policies wherever applicable.

• Mandatory finance underwriting for life insurance policies.

• Electronic issuance of all life insurance policies.

Life Insurance Grievances Raised in 2024

There are grievances raised in the life insurance sector due to various reasons including unfair business practices, survival claims, proposal processing, policy servicing, ULIPs related, and many other reasons.

INTERESTING FACT

The premium underwritten by LIC alone in 2024 is greater than all the 25 private life insurance companies combined together.?

Major Updates in the Life Insurance Sector in 2024

• Higher SSV (Special Surrender Value) starting from October 1, 2024, for traditional endowment policies.

• Partial withdrawals are allowed from pension products.

• Introduction of CIS (Customer Information Sheet) to provide policy information to the policyholders in easy language.

Summing Up

A life insurance policy is not a requirement but a necessity to ensure your loved ones are secured even in your absence. People are often tired of spammy calls and gimmicks of insurance companies.?

We at PolicyX.com believe in No Spam, No Gimmicks, Only Expert Insurance Advice.

*All the data and facts used in the newsletter are derived from IRDAI Annual Report 2023-24