ICICI Prudential Life Insurance has reported a notable growth in its new business premium for August 2024, registering a 12.3% year-on-year (YoY) increase. The company’s total new business premium for the month reached ₹15.09 billion, up from ₹13.43 billion in the corresponding month of the previous year.
Strong Growth in Key Segments
ICICI Prudential’s Annualized Premium Equivalent (APE) for August 2024 stood at ₹7.97 billion, reflecting a 20% YoY increase. This growth was primarily driven by strong performance in proprietary channels such as agency and direct sales, which contributed significantly to the rise in overall premiums.
Additionally, the Retail Weighted Received Premium (RWRP), a key metric for tracking insurance sales, grew 29.5% YoY, highlighting the company’s ability to maintain a solid foothold in the competitive life insurance market.
Expanding Distribution and Product Mix
The company continues to leverage its diversified distribution model, with proprietary business channels now contributing approximately 53% of retail APE. Bancassurance and partnership distribution also saw steady growth, emphasizing ICICI Prudential’s commitment to expanding its market reach.
ICICI Prudential has placed a strong focus on protection and annuity products, which together accounted for 29% of the product mix. This strategic focus has not only helped the company capture a larger share of the growing protection market but also cater to a diverse range of customer needs.
Persistency Ratios and Customer-Centric Focus
The company’s persistency ratios, a measure of customer retention, showed steady improvement, with the 13th-month persistency at 89.7% and the 49th-month persistency at 70.7%. These figures underscore ICICI Prudential’s success in fostering long-term customer relationships and improving policy renewal rates.
Moreover, ICICI Prudential continues to integrate digital solutions to enhance customer experiences, with 85% of policies being issued using digital KYC and 48% of savings policies issued on the same day.
Outlook
With a well-diversified product portfolio, robust distribution network, and a clear focus on customer-centric growth, ICICI Prudential Life Insurance is well-positioned to maintain its growth trajectory. The company’s consistent premium growth and strong performance metrics reflect its ability to adapt to market dynamics while delivering value to its customers and stakeholders.
