India’s Life Insurance New Business Premiums Rise 21.3% in September 2026, Led by Group Business

Life insurers recorded new business premiums of ₹48,780.6 crore in September, while first-half FY27 premiums grew 20.6% year-on-year to ₹2.46 lakh crore. Private insurers outpaced LIC, supported by growth in group business.

India’s life insurance industry recorded a 21.3% year-on-year (YoY) increase in new business premiums (NBP) to ₹48,780.6 crore in September 2026, according to CareEdge Ratings. However, growth moderated from 33.1% in August.

Group business remained the primary growth driver, with group single premiums increasing 23.3%. Private insurers recorded 23.2% growth in monthly NBP, compared with 19.9% for the Life Insurance Corporation of India (LIC). Individual premiums grew at a slower pace of 13.2%, while individual non-single premiums increased 8.5%.

For the first half of FY27, industry NBP rose 20.6% year-on-year to ₹2,45,604 crore. Annualised Premium Equivalent (APE), another measure of new business performance, increased 17.9% in September to ₹18,655.5 crore.

Group Single Premiums Lead Industry Growth

Group single premiums increased 23.3% year-on-year to ₹27,843.4 crore in September, contributing approximately 61% of the overall incremental NBP for the month.

Industry single premiums rose 23.6% to ₹33,472.3 crore, accounting for 68.6% of September NBP, compared with 67.4% a year earlier. In H1 FY27, single premiums represented 70.8% of total premiums, up from 69.4% in H1 FY26.

Group premiums grew 26.3% to ₹31,396.7 crore in September, nearly twice the 13.2% growth recorded by individual premiums, which reached ₹17,383.9 crore. During H1 FY27, group premiums increased 24.5%, compared with 14.0% growth in individual premiums.

Consequently, group business accounted for 64.5% of industry premiums in H1 FY27, up from 62.5% in the corresponding period a year earlier.

Group non-single premiums, however, declined 76.7% year-on-year in September.

Private Insurers Outpace LIC

Private insurers recorded NBP of ₹21,251.9 crore in September, an increase of 23.2% year-on-year. LIC’s NBP rose 19.9% to ₹27,528.7 crore.

LIC’s share of monthly industry NBP declined to 56.4% from 57.1% in September 2025, although it remained the largest insurer by premium volume. LIC accounted for 73.9% of industry group single premiums during the month.

For H1 FY27, private insurers’ NBP grew 22.5%, compared with 19.3% for LIC. Private insurers’ share of total industry NBP increased to 41.2% from 40.6% in H1 FY26.

LIC continued to dominate group business, although its share of H1 FY27 group premiums fell to 70.5% from 72.7% a year earlier.

Individual Policy Volumes Remain Nearly Flat

Individual non-single policy volumes declined 0.5% year-on-year to 21.9 lakh in September 2026.

LIC’s individual non-single policy volumes fell 4.6% to 13.0 lakh, while private insurers recorded 5.9% growth to approximately 9.0 lakh policies. Private insurers’ share of monthly policy volumes increased to 40.9% from 38.5% in September 2025.

In H1 FY27, individual non-single policy volumes rose 2.0% to 116.8 lakh. A 9.4% increase among private insurers offset a 2.2% decline at LIC.

Premium growth continued to exceed policy growth. The average individual non-single premium per policy increased approximately 9% year-on-year to around ₹53,600 in September.

At LIC, the average premium per policy rose approximately 19% to around ₹22,900, despite the decline in policy volumes. Private insurers recorded a more modest 0.9% increase in average premium per policy to around ₹97,900, with growth primarily driven by higher policy volumes.

The report also noted that private insurers’ average ticket size was approximately four times that of LIC, contributing to the overall premium mix.

Annualised Premium Equivalent Records Double-Digit Growth

Industry APE increased 17.9% year-on-year to ₹18,655.5 crore in September. Private insurers recorded 23.4% growth, while LIC’s APE increased 8.2%.

Group APE rose 39.7%, mainly because group yearly renewable premiums—which are counted in full in APE calculations—more than doubled. This segment accounted for approximately 62% of the increase in industry APE. Individual APE grew 9.1%.

For H1 FY27, industry APE increased 17.3% to ₹89,603 crore. Private insurers recorded 20.3% growth, compared with 12.2% for LIC.

Private insurers’ share of industry APE rose to 64.2% in H1 FY27 from 62.6% in H1 FY26 and 60.0% in H1 FY25. LIC’s share declined to 35.8%, compared with 37.4% and 40.0% in the respective earlier periods.

CareEdge Ratings Expects Moderate Growth Over the Medium Term

Vineet Jain, Senior Director, CareEdge Ratings, said:

“In September 2026, LIC’s policy volumes declined by 4.6%, while its average premium per policy increased by around 19%. Private life insurers recorded 5.9% growth in individual non-single policy volumes. Annualised Premium Equivalent (APE) increased by 17.3%, led by private insurers at 20.3%, compared with 12.2% for LIC. Going forward, the industry is expected to sustain moderate growth over the medium-term. IRDAI has placed its proposed changes to expenses of management, including commissions, for public comments; the final shape of these changes will be a key monitorable for insurers’ profitability and distribution strategy,”

Saurabh Bhalerao, Director, CareEdge Ratings, said group business remained the key growth driver in September, with group single and group yearly renewable premiums together accounting for more than 80% of incremental NBP.

He noted that private insurers outpaced LIC both during September and across H1 FY27, while their share of first-half APE increased to 64.2% from 62.6% a year earlier.

According to Bhalerao, industry growth could benefit from wider distribution, rising awareness and sustained demand for protection, savings and annuity products. The proposed cooperative life insurer could also support insurance penetration in rural and underserved markets.

However, the reliance on group and single-premium business could contribute to monthly volatility because institutional flows can be uneven. From October, year-on-year comparisons will also be against a base that already reflects the GST exemption on individual policies, effective September 22, 2025, which could moderate growth in the individual segment.

Potential changes to bancassurance and distribution regulations remain important to monitor, as they could affect access to bank-led distribution channels, customer acquisition costs and business growth, particularly for insurers more dependent on bancassurance.

CareEdge Ratings expects the industry to maintain healthy medium-term growth, although the pace could moderate as the comparison base normalises.