A favourable base effect further boosted the growth metric.
The industry reported total premium collection of ₹4.59 lakh crore during FY26, up from ₹3.97 lakh crore in FY25, when growth had been relatively modest at around 6%.
The rebound was supported by steady expansion across both private insurers and the state-owned Life Insurance Corporation of India (LIC).
Private sector insurers led the growth with a 16.75% rise in premiums, while LIC reported a 14.91% increase. Growth in the individual non-single or regular premium segment at the industry level was at 12.3%. However, LIC lagged peers in this category, posting a slower 4.54% increase.
The uptick in premium collections was driven by a shift in product mix and improved profitability metrics. Growth in sales was supported by a higher retail protection mix, along with insurers focusing on product-level profitability through larger sum assured, longer policy tenures and increased rider attachments. Insurers, including LIC, have also been focusing on higher-margin traditional savings and protection products to drive value over volume.The government’s decision to exempt the 18% goods and services tax (GST) on individual life and health insurance premiums from September 2025 lowered costs for policyholders, improving affordability and supporting higher sum assured as well as increased demand for long-term policies.
Among listed private players, performance remained mixed. SBI Life Insurance and Axis Max Life Insurance recorded near 20% growth in premium income, at 19.6% and 19.12% respectively. In contrast, HDFC Life Insurance reported an 8.54% rise in overall new business premium, while ICICI Prudential Life Insurance saw a 9.86% increase, relatively slower growth among some large private insurers.