LIC, Bajaj Allianz, SBI Life Report Higher Premium Collections as Industry Crosses ₹4 Trillion in FY26

India’s Life Insurance industry recorded a recovery in FY26, with new business premium (NBP) rising 15.7 % year-on-year to ₹4.59 trillion, as per a Business Standard report.  

This is the first time the industry has crossed the ₹4 trillion mark, compared with ₹3.97 trillion in FY25. NBP refers to premiums collected from newly issued policies during the year. 

The improvement comes after 2 relatively slow years. Growth stood at 5.7% in FY25 and 2% in FY24. In contrast, FY23 had seen a higher expansion of nearly 17%. 

Segment-Wise Performance 

Group business continued to account for a larger share of premiums. Group premiums rose 19.24% year-on-year to ₹2.75 trillion. Individual premiums increased at a slower pace of 10.8% to ₹1.85 trillion. 

Policy volumes also increased, though at a lower rate than premiums. The total number of policies sold rose 4.7% to 28.33 million. 

Public and Private Insurers 

The state-run Life Insurance Corporation of India (LIC) reported a 14.9% rise in NBP to ₹2.60 trillion, compared with ₹2.27 trillion in the previous year. 

Private insurers recorded higher growth of 16.75%, with premiums increasing to ₹1.99 trillion from ₹1.71 trillion.  

Among them, SBI Life Insurance reported a 19.6% increase in NBP to ₹42,550 crore, while Bajaj Allianz Life Insurance saw an 18.7% rise to ₹14,585.82 crore. 

Monthly Trend and Policy Count 

March saw a sharper increase in business volumes. Industry-wide NBP rose 23.5% year-on-year to ₹75,872.3 crore during the month. LIC reported a 17.35% increase to ₹43,310 crore, while private insurers recorded a 32.73% rise to ₹32,562.1 crore. 

In terms of policy count, LIC sold 18.5 million policies, up 3.63%, while private insurers recorded a 6.75% increase to 9.87 million policies. 

Impact Of Regulatory and Tax Changes 

Growth in FY24 was affected by the removal of tax exemptions on maturity proceeds for policies with annual premiums above ₹5 lakh. In FY25, revised surrender value norms also weighed on expansion. 

In FY26, a reduction in Goods and Services Tax on insurance products from 18% to nil contributed to improved demand. 

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Conclusion 

The FY26 data indicates a return to higher growth levels for the life insurance sector following two years of regulatory adjustments and slower expansion. 

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