India’s life-insurance sector makes a strong rebound in Nov, LIC leads

New Delhi, Dec 12 India’s life-insurance sector made a strong rebound in November, with new-business premiums increasing by 23 per cent year-on-year to Rs 31,119.6 crore, according to a new report.

The life-insurance industry continued its streak of double-digit monthly growth for the third consecutive month. The rebound was driven by a surge in individual non-single policies and robust performance across both individual and group segments.

A favourable base effect and a smoother adjustment following the GST waiver for individual life policies further supported this upswing, helping to maintain the industry’s growth momentum, said the report by CareEdge Ratings.

LIC continued to lead the market, supported by strong momentum in both individual and group segments, while private insurers sustained double-digit growth.

Individual non-single premiums posted notable gains, highlighting resilient recurring inflows, and the group business benefited from a revival in institutional activity.

Although the annual renewal rate for group policies eased due to an exceptionally strong prior-year base, the sector’s overall trajectory remains positive.

According to the report, for year-to-date (YTD) FY26, cumulative first-year premiums grew at a steady, sustainable pace, driven largely by private players, reflecting a return to normal growth following the temporary boost from recent regulatory changes.

In November, life insurers experienced a significant rebound in single-premium business, increasing by 29.4 per cent (on-year), after a 19.8 per cent decline the previous year.

Meanwhile, non-single premiums grew modestly by 14.3 per cent, due to a decline in group renewals, despite market preference for individual non-single products following GST cuts. Private insurers notably strengthened their position in the individual non-single segment, while LIC maintained its dominance in single-premium business, supported by its strength in group business offerings.

Individual life insurance premiums surged 26.4 per cent, rebounding sharply from just a 7.7 per cent increase a year earlier.

According to Sanjay Agarwal, Senior Director, CareEdge Ratings, India’s life-insurance sector made a strong rebound in November.

The surge in policy issuance is accompanied by broad-based growth in customer participation, indicating that the industry has overcome agency-led distribution issues following the change in surrender value norms introduced last year, he mentioned.

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