Life Insurance Policies Surge to 18.4 Million in April-December FY26

The number of life insurance policies sold in India rose to 18.4 million during the April-December period of FY26, up from 18.2 million in the same period the previous year.  

This increase is attributed to the GST exemption on individual life and health policies, which has encouraged more consumers to invest in insurance. 

Growth in Life Insurance Policies 

The public sector Life Insurance Corporation of India (LIC) experienced a slight decline in policy sales, with a 0.50% year-on-year decrease to 11.67 million policies. In contrast, private life insurers saw a 5.74% increase, selling 6.82 million policies during the same period.  

This growth highlights the competitive dynamics between public and private sector insurers in the Indian market. 

Premium Categories Performance 

Different premium categories showed varied performance during the April-December FY26 period. The Individual Single Premium category grew by 3.96%, while the Individual Non-Single Premium category saw a modest increase of 1.66%. Group Single Premiums experienced a significant rise of 16.36%, reflecting strong demand in this segment. 

However, Group Non-Single Premiums increased by 6.92%, indicating a slower growth rate compared to previous years. Notably, the Group Yearly Renewable Premium category saw a decline of 50.17%, suggesting challenges in renewing group policies. 

Read More: India’s Insurance Penetration Stagnates at 3.7% for FY25! 

Overall Market Growth 

The overall growth in life insurance policies during April-December FY26 was 1.71%, a positive shift from the 1.79% decline observed in the previous fiscal year. This growth can be attributed to the favourable tax environment and increased awareness about the importance of insurance among consumers. 

Conclusion 

The surge in life insurance policies to 18.4 million in April-December FY26 underscores the impact of GST exemptions and the growing role of private insurers in the Indian market. While LIC saw a slight decline, private insurers capitalised on the favourable conditions to expand their market share. 

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