New Delhi, December 12 (IANS). India’s life-insurance sector made a strong comeback in November, with new business premium growing 23 per cent year-on-year to Rs 31,119.6 crore.
According to a CareAge Ratings report, the life-insurance industry recorded double-digit monthly growth for the third consecutive month. The uptick was mainly due to growth in individual non-single policies and good performance in both individual and group segments.
According to the report, the positive changes in the market after the GST exemption and the low base effect of last year also helped in this boom, due to which the growth of the industry has been maintained.
LIC maintained its market leadership with strong performance in both individual and group segments, while private insurance companies also continued to grow in double digits.
Individual non-single premiums witnessed strong growth, reflecting continued premium premium strength. Group business also benefited from improvements in institutional activities. Although this year saw a slight decline in renewal rates for group policies due to the very strong base effect last time, the overall direction of the sector is still positive.
According to the report, there has been a continuous increase in the first year premium till now in the financial year 2026. The main reason for this is the contribution of private companies.
Single-premium business of life insurance companies has also seen a jump of 29.4 percent in November, whereas it had declined by 19.8 percent in the same month last year. There was a modest increase of 14.3 per cent in non-single premium as group renewals declined, although people are preferring individual non-single products after the GST cut. Private companies strengthened their position in the individual non-single segment, while LIC maintained its lead in the single-premium business. Individual life insurance premiums rose 26.4 percent, up from only 7.7 percent last year.
Sanjay Aggarwal, Senior Director, CareAge Ratings, said that India’s life-insurance sector has made a strong comeback in November. He said the growing policy sales and widespread customer participation show that the industry has now overcome the agency-level problems caused by the surrender value rules changed last year.
— IANS
Durgesh Bahadur/ABS