Life insurers’ new business premium rises 21% to Rs 47,005 crore

India’s life insurance industry reported strong growth in new business premium in July 2026, with collections rising nearly 21 per cent year-on-year to Rs 47,004.84 crore, even as the number of policies and schemes issued remained almost unchanged. According to data from the Insurance Regulatory and Development Authority of India (IRDAI), first-year premium collections increased 20.7 per cent from Rs 38,958.05 crore recorded in July last year. The sharp increase in premium collections contrasted with relatively subdued growth in policy volumes, indicating that larger-ticket and group businesses were major contributors to the industry's performance.

Policy growth stays flat

The total number of policies and schemes issued by life insurers stood at 22.98 lakh in July 2026, up just 0.9 per cent from 22.78 lakh in the corresponding month last year.

The modest increase in policy count, compared with the double-digit rise in premium collections, highlighted the difference between growth in the value of new business and the actual number of policies sold.

The trend was largely driven by a sharp expansion in group single-premium business during the month.

Group business surges

Industry-wide group single premium climbed 30.9 per cent year-on-year to Rs 27,857.01 crore in July, compared with Rs 21,280.53 crore in the same month of 2025.

Individual non-single premium, an important indicator of regular retail life insurance business, rose 8.6 per cent to Rs 10,914.69 crore from Rs 10,051.05 crore a year earlier.

Individual single-premium collections increased 10.7 per cent to Rs 6,097.84 crore during the month.

The numbers showed that while retail business continued to expand, group policies accounted for a significant share of the industry's overall premium growth.

LIC records strong growth

Life Insurance Corporation of India (LIC) registered a 23.8 per cent year-on-year increase in its new business premium during July, outperforming the overall industry's growth rate.

The increase came despite LIC recording a 1.9 per cent decline in the number of policies and schemes issued during the month, further underscoring the role of higher-value business in driving premium collections.

Private life insurers collectively registered 16.3 per cent growth in new business premium and also recorded an increase in policy volumes.

Among major private players, ICICI Prudential Life Insurance recorded a 20.7 per cent increase in new business premium to Rs 2,300.92 crore, while Bajaj Life Insurance posted growth of 20.3 per cent to Rs 1,386.17 crore.

HDFC Life Insurance's premium increased 15.53 per cent to Rs 3,528.41 crore, while Axis Max Life Insurance recorded 15.46 per cent growth to Rs 1,252.47 crore. SBI Life Insurance's new business premium rose 2.53 per cent to Rs 3,898.7 crore.

April-July premium rises

The industry's growth remained strong over the first four months of the financial year as well.

Cumulative first-year premium collections during April-July 2026 increased 17.5 per cent year-on-year to around Rs 1.56 lakh crore, according to the industry data.

The July figures point to robust premium mobilisation by India's life insurers, although the nearly flat policy count suggests that the expansion is being driven more by premium value and group business than by a substantial increase in the number of policies sold.