India's life insurance industry recorded a robust 16.6% year-on-year increase in new business premiums (NBP) for the April-June quarter of fiscal year 2027, reaching Rs 1.09 lakh crore, according to a CareEdge Ratings BFSI research report. The growth was propelled by strong performance from private insurers, sustained demand for retail products, and a recovery in group business.
Private Insurers Outperform, Market Share Nears 40%
Private insurers continued to outpace the overall market, strengthening their combined market share to nearly 40% during Q1FY27, up from 36.5% a year earlier. The report attributed this to significant expansion in premium collections, supported by continued traction in retail products and a rebound in group business. Meanwhile, Life Insurance Corporation of India (LIC) maintained its dominant position with around 60% market share.
Monthly Growth Reverses Previous Contraction
On a monthly basis, the industry returned to growth in June 2026 after a weak base a year ago. New business premiums rose 13.1% year-on-year to Rs 46,490.5 crore, reversing the 3.1% contraction recorded in June 2025. Private insurers led the recovery with a 36.8% year-on-year increase in June, compared with a modest 1.2% rise for LIC.
According to the CareEdge report, "India's life insurance industry reported a strong start to FY27, with New Business Premiums (NBP) increasing 16.6% year-on-year (y-o-y) in Q1FY27, reflecting sustained demand across both retail and group segments." The report added that "growth was primarily driven by private insurers, whose premium collections expanded significantly, supported by continued traction in retail products and a recovery in group business."
Group Business Rebound and Retail Strength
The recovery was underpinned by a sharp rebound in group business and continued strength in retail protection and long-term savings products, particularly individual non-single premium policies. The report highlighted that these segments contributed to the overall positive momentum in the first quarter.
Outlook: Digital Expansion and Regulatory Caution
Looking ahead, CareEdge expects premium growth to remain supported by expansion of digital and diversified distribution channels, improving demand for protection and annuity products, and a gradual recovery in group business. However, the rating agency cautioned that any regulatory changes relating to bancassurance could prompt insurers to further diversify their distribution channels.
