India’s Life Insurance Premiums Rise 12.1% in October 2025

Stronger Individual Premiums Drive Double-Digit Growth

India’s life insurance sector recorded robust growth in October 2025, with first-year premiums increasing by 12.1% year-on-year to ₹34,007 crore. The surge was fueled by steady gains in individual non-single premium policies and renewed institutional demand in group business, reflecting a sustained recovery in the sector.

India’s life insurance sector sustained its growth momentum in October 2025, achieving a 12.1% year-on-year rise in new business premiums, totaling ₹34,007 crore. This performance marked a strong rebound from the decline seen in August 2025, supported by improved demand in the individual segment, particularly for non-single premium policies. The uptick was also aided by a favorable base effect and the reduction in GST on individual life insurance products, encouraging greater customer participation.

Both private insurers and LIC demonstrated healthy growth, with LIC retaining its leadership through robust individual and group performance. Private players continued to record double-digit gains, highlighting the sector’s resilience. Individual non-single premium policies saw significant traction, underscoring rising consumer preference for recurring products, while the group segment grew moderately amid renewed institutional interest.

Non-single premium collections increased by 21.3% y-o-y, reversing last year’s subdued growth. Meanwhile, single premiums rose by 8.3% y-o-y, maintaining their larger share of total premium inflows. Individual premiums surged 18.3%, rebounding sharply from a slower 4.5% rise in the previous year, whereas group premiums expanded by 8.6%.

The number of individual non-single policies issued increased substantially by 62.8% y-o-y, driven mainly by LIC’s 120.1% jump in policy issuances, supported by a favorable base and renewed demand following GST rate cuts. Private insurers posted steady growth of 10.5%, indicating consistent expansion in the recurring premium segment.

According to Sanjay Agarwal, Senior Director at CareEdge Ratings, “India’s life insurance industry recorded a strong rebound in October 2025, with APE growth accelerating to 18.7%, a significant improvement from September’s 5.2%. The GST waiver on life and health insurance products has provided a timely boost, reviving customer engagement and pushing the sector back to double-digit growth.”

Saurabh Bhalerao, Associate Director at CareEdge Ratings, added, “The 12.1% growth in new business premiums reflects robust traction in the individual segment, particularly in non-single products. With private insurers expanding regionally and initiatives like the Bima Sugam digital marketplace gaining traction, the sector is well-positioned for sustained expansion.”

Over the medium term, CareEdge anticipates continued positive momentum supported by regulatory reforms, product innovation, digital transformation, and deeper distribution networks, all contributing to a stronger and more resilient life insurance market in India.