Synopsis: Life insurers' new business premium rose 21.3% year-on-year to Rs 48,781 crore in September 2026, according to CareEdge Ratings. Private insurers grew 23.2%, faster than LIC's 19.9%, while group single-premium business drove most of the increase.
India's life insurance industry closed the first half of FY27 on a strong note. New business premium (NBP) rose 21.3% to Rs 48,780.6 crore in September 2026, up from Rs 40,206.7 crore a year earlier, CareEdge Ratings said in a report. Growth slowed from 33.1% in August.
LIC vs private life insurers: September 2026
- LIC: Rs 27,528.7 crore, up 19.9%. Its share of the month's industry premium slipped to 56.4% from 57.1%.
- Private insurers: Rs 21,251.9 crore, up 23.2%.
Among the large private players, industry data reported by BW Businessworld showed ICICI Prudential Life growing about 25% to Rs 2,701 crore, HDFC Life about 18% to Rs 4,000 crore and SBI Life about 10% to Rs 4,035 crore in September.
Group single premium did the heavy lifting
The growth was led by group single-premium policies, which rose 23.3% to Rs 27,843.4 crore and accounted for about 61% of the month's incremental premium. Overall single-premium business grew 23.6% to Rs 33,472.3 crore, or 68.6% of NBP.
For the first half of FY27, single premiums made up 70.8% of industry new business premium, up from 69.4% a year earlier, and group business rose to 64.5% of the total. LIC continued to dominate the group segment with a 70.5% share, down from 72.7%.
APE: the metric analysts prefer
Because single premiums can inflate headline numbers, analysts track Annualised Premium Equivalent (APE), which counts only 10% of single premiums alongside regular premiums.
- September 2026 APE rose 17.9% to Rs 18,655.5 crore. Private insurers grew 23.4%; LIC grew 8.2%.
- H1 FY27 APE rose 17.3% to Rs 89,603 crore. Private insurers' APE share rose to 64.2%, from 62.6%, while LIC's fell to 35.8%.
Fewer policies, bigger tickets
The number of individual non-single-premium policies sold dipped 0.5% to 21.9 lakh. LIC sold 4.6% fewer, at 13 lakh, while private insurers sold 5.9% more, at 9 lakh. Average premium per policy rose about 9% to roughly Rs 53,600. LIC's average rose about 19% to Rs 22,900, while private insurers' stayed broadly stable at around Rs 97,900.
IRDAI flags distribution costs and mis-selling
The strong numbers come as the regulator questions how insurance is sold. IRDAI member Swaminathan Iyer has said the regulator's consultation on distribution aims to widen access and bring distributor incentives closer to customer interests. He noted that distribution costs have risen sharply over the past decade without a matching improvement in efficiency, and that mis-selling complaints remain a concern.
Frequently asked questions
How much did life insurance new business premium grow in September 2026?
21.3% year-on-year, to Rs 48,780.6 crore, according to CareEdge Ratings.
Did private insurers grow faster than LIC?
Yes. Private insurers' NBP rose 23.2% against LIC's 19.9%, and private insurers' APE grew 23.4% against LIC's 8.2%.
What is APE in life insurance?
Annualised Premium Equivalent is regular premium plus 10% of single premium. It gives a cleaner view of underlying sales.
Related: LIC explained · SBI Life · What is YoY? · BFSI Glossary
Sources: CareEdge Ratings, as reported by BW Businessworld (13 Oct 2026); BW Businessworld (8 Oct 2026). Insurer-level figures and CareEdge totals come from different datasets and may differ slightly. This article is for information only and is not investment advice.
