Life insurance industry’s new business premium grows nearly 16% to ₹4.59 lakh crore in FY26

India’s life insurance industry reported a 15.7% year-on-year rise in new business premium (NBP) in FY26, with total collections reaching ₹4.59 lakh crore, compared with ₹3.97 lakh crore in the previous financial year.

According to industry data released by the Insurance Awareness Committee–Life, insurers collected ₹75,872 crore in new business premium in March 2026, up from ₹61,439 crore in the same month last year, reflecting continued demand across individual and group insurance segments.

The group business segment remained the main driver of growth during the year. Group single premium collections increased 17.5% year-on-year to ₹2.49 lakh crore, while group yearly renewable premium rose 39%. Group non-single premium business also expanded during the period.

The individual insurance segment also recorded steady growth. Individual non-single premium collections rose 10.1% to ₹1.26 lakh crore, while individual single premium business grew 12.3% to ₹57,664 crore.

The industry issued more than 2.83 crore policies during FY26, marking a 4.7% increase over the previous year. Premium growth outpaced policy growth, indicating a rise in average ticket sizes and a shift towards higher-value insurance products.

Kamlesh Rao, Chairperson of the Insurance Awareness Committee (IAC-Life), said the industry’s performance reflected increasing awareness around financial protection and long-term planning among households. He added that while group business continued to support overall expansion, growth in the individual segment remained an encouraging trend for the sector.

The Insurance Awareness Committee–Life said India continues to face a significant life insurance protection gap, particularly among younger individuals aged 18–35, highlighting the need for wider awareness and adoption of insurance products.