MUMBAI | 05th MAY 2026 | The life insurance industry recorded strong momentum in FY26, with total new business premium (NBP) rising 15.7% year-on-year to ₹4,59,713 crore, compared to ₹3,97,337 crore in FY25.
For the month of March 2026, the industry collected ₹75,872 crore in new business premium, reflecting a sharp increase over ₹61,439 crore in March 2025, underscoring sustained demand across both individual and group segments.
Growth was largely driven by the group business segment, which continued to be a key contributor to overall expansion. Group Single Premium grew 17.5% year-on-year to ₹2,49,766 crore, while Group Yearly Renewable Premium saw a robust increase of 39.0%. Group Non-Single Premium also registered strong growth, albeit on a smaller base.
The individual segment remained resilient, reflecting steady retail participation. Individual Non-Single Premium rose 10.1% to ₹1,26,900 crore, while Individual Single Premium grew 12.3% to ₹57,664 crore, indicating sustained demand for long-term savings and protection products.
In terms of policy issuance, the industry issued over 2.83 crore policies during FY26, marking a 4.7% increase over the previous year. The relatively higher growth in premium compared to policy volumes highlights an increase in average ticket sizes, pointing towards improved product mix and rising consumer confidence in life insurance as a financial planning tool.
“The life insurance industry’s robust performance in FY26 reflects rising awareness and a gradual shift towards planned financial protection among Indian households. The growth number of 15.7% is encouraging and highlights the combined impact of increased protection awareness, wider distribution reach, and continued innovation in product offerings. While group business continues to provide momentum, the steady expansion in individual segments is particularly encouraging. However, the significant protection gap underscores the need to accelerate awareness and stimulate early adoption. As the Insurance Awareness Committee, our continued focus is on driving sustained awareness, improving understanding, and encouraging early adoption of life insurance to strengthen financial resilience across the country,” said, Kamlesh Rao, Chairperson, Insurance Awareness Committee (IAC-Life).
