Progress and Performance of Life Micro-Insurance in India: A Comparative Analysis of LIC and Private Sector

The micro-insurance sector in India has emerged as a crucial instrument for promoting financial inclusion and social protection, particularly among low-income and rural populations. This study examines the progress and performance of life micro-insurance in India between 2019-20 and 2023-24, focusing on the comparative performance of the Life Insurance Corporation of India (LIC) and private sector insurers. Data has been collected from the Annual Reports of the Insurance Regulatory and Development Authority of India (IRDAI). The analysis encompasses the trends in the number of micro-insurance agents, new business under individual and group life insurance schemes, and associated premium collections. The findings reveal that while private insurers have achieved substantial expansion in agent networks and group business coverage, LIC continues to dominate in terms of individual policy premiums despite declining policy volumes. The Compounded Annual Growth Rate (CAGR) analysis highlights a gradual yet consistent increase in overall distribution networks but indicates volatility in new business performance. The results underline the need for strategic reforms, digital integration, and increased awareness campaigns to enhance penetration and sustainability of micro-insurance products across India.