New Delhi, 12 July (IANS). The Indian Life Insurance Industry registered new business premiums worth Rs 41,117.1 crore in June amid the impact of revised surrender value rules, low credit life sales and group single premium. This information was given in a latest report.
Carey ratings hopes that the life insurance industry will continue to grow at the rate of 10–12 percent in the next three to five years, which will be possible due to product innovation as well as supporting rules, sharp digitization, effective distribution and better customer services.
In June, Annual Premium Equivalent (APE) increased by 2.5 percent, which is a slow growth rate compared to an increase of 20.0 percent in the same period last year.
According to the report, in the context of APE, the industry increased from 11.0 percent CAGR between June 2023 and June 2025. During this period, the growth rate of private insurance companies was 15.4 percent.
Saurabh Bhalerao, associate director of Carey Ratings, said, “The first quarter is usually a slow period for life insurance sector, as it comes after the end of the financial year, when most retail customers have purchased a hasty policy at the last time.”
The growth on a quarterly basis in the first quarter of FY 2026 was 4.3 percent, compared to 22.9 percent in the same quarter a year ago. The main reason for this was the influence of consumer demand reduction and revised surprise value guidelines.
Bhalerao said that LIC and private companies have recorded a premium growth in individual single and non-singal premiums, indicating that they have a strong distribution channel and are moving towards high-value policies amidst changes in surrender value rules.
The individual and annual group business has accelerated this month’s growth. The focus on collecting deposits by banks is likely to be more emphasis on the agency channel.
Sanjay Aggarwal, senior director of CARAIAGE Ratings, said, “Apart from this, the proposed insurance amendment act aims to encourage new companies to enter the market and increase the penetration in the market.”
-IANS
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