Life Insurers Witness Robust Growth in New Business Premiums

The life insurance industry experienced significant growth in the first part of the fiscal year, with new business premium collection soaring by 10.8% over the year. Data from the Life Insurance Council highlighted a substantial 12.6% rise in new business premium collection for May 2025 alone.

The industry accumulated Rs 30,463 crore in new premium income in May 2025, an increase from Rs 27,034 crore recorded a year prior. Over the first two months of FY2025-26, premium collection reached Rs 52,427 crore, up from Rs 47,293 crore during April-May of FY2024-25.

Growth was largely driven by a surge in policies purchased by first-time buyers, leading to a notable increase in life insurers' combined individual and group premiums. The Life Insurance Corporation (LIC) saw its new business premiums grow by 10.27% to Rs 18,405.04 crore in May 2025, while group premiums rose 13.79% for the same month.

(With inputs from agencies.)