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India's life insurers recorded a nearly 21 per cent year-on-year rise in new business premium to Rs 47,004.84 crore in July 2026 from Rs 38,958.05 crore in the same month last year, though the underlying data showed that growth across insurers and business segments remained uneven.

Group Premiums Surge, Retail Growth Moderate

According to provisional data from the Life Insurance Council's Detailed New Business Performance of Life Insurers for the Period ended Jul-26, group single-premium collections rose sharply to Rs 27,857.01 crore in July from Rs 21,280.53 crore a year earlier, an increase of nearly 31 per cent.

In comparison, individual non-single premium, which reflects recurring premium business from individual customers, increased about 9 per cent to Rs 10,914.69 crore from Rs 10,051.05 crore. The difference indicates that while the industry's overall premium collections expanded strongly during the month, growth in recurring retail business was relatively moderate.

Company-Wise Performance

LIC Posts 24% Growth

Life Insurance Corporation of India (LIC), the country's largest life insurer, recorded new business premium of Rs 27,993.61 crore in July, up nearly 24 per cent from Rs 22,617.64 crore a year earlier. A significant part of LIC's increase came from group single premiums, which rose about 32 per cent to Rs 20,930.08 crore. Its individual non-single premium increased about 10 per cent to Rs 2,937.34 crore.

Private Insurers Show Divergent Trends

Among major private insurers, ICICI Prudential Life Insurance recorded new business premium growth of about 21 per cent to Rs 2,300.92 crore, while Axis Max Life's premium rose about 19 per cent to Rs 1,252.47 crore. Bajaj Life Insurance recorded growth of about 20 per cent to Rs 1,386.17 crore.

HDFC Life Insurance's overall new business premium rose about 16 per cent to Rs 3,528.41 crore, but its individual non-single premium declined about 7 per cent to Rs 1,203.32 crore. At the same time, group single premium jumped about 43 per cent to Rs 1,860.12 crore, highlighting the difference between its headline premium growth and retail recurring business during the month.

SBI Life Insurance showed a different trend. Its overall new business premium increased only about 3 per cent to Rs 3,898.71 crore, partly as group single premium declined about 18 per cent. However, individual non-single premium rose about 14 per cent to Rs 1,958.26 crore, indicating stronger momentum in its recurring individual business despite muted headline premium growth.

Regulatory Environment and Sector Outlook

Individual life insurance policies have been exempt from GST since September 2025, after the government reduced the tax rate from 18 per cent to nil to make insurance more affordable.

The sector is also undergoing broader regulatory changes following the passage of the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Act, 2025, which raised the foreign direct investment limit in Indian insurance companies from 74 per cent to 100 per cent, aimed at attracting more capital and increasing insurance penetration.

Overall, the July data points to strong headline growth for the life insurance industry but a more mixed picture underneath, with group single-premium collections growing much faster than recurring individual premiums and significant differences in the business mix of major insurers. (ANI)