Insurance News Details

Life Insurance Companies Premium Income up 19% in May

(10-Jun-26   12:48)

According to data released by the insurance regulator IRDAI, the life insurance sector recorded a robust 19% growth in premium income, reaching Rs 62,581 crore in May, compared to Rs 52,427 crore collected during the same period last year.

Total premium collections increased during the first two months of the 2026-27 financial year, driven by strong growth in individual policies and rising retail demand following the GST exemption granted to individual life insurance plans.

The GST exemption made individual life insurance plans more attractive and improved persistency'the rate at which policyholders continue their policies by paying premiums on time. Consequently, industry executives noted strong customer interest in individual savings and protection plans.

This growth was broad-based, with both the state-owned Life Insurance Corporation of India (LIC) and private life insurance companies recording significant growth.

LIC collected Rs 37,824 crore during this period, compared to Rs 32,016 crore a year earlier. Meanwhile, private insurance companies generated Rs 24,756 crore, up from Rs 20,411 crore.

LIC's retail business continued to perform well; Individual non-single premium income rose by 17%, and growth in individual single premium collections stood at 15%. However, the insurer witnessed only moderate growth in its group business during this period.

Private insurance companies outperformed the industry average, recording a 21.3% increase in premium collections. Regular premium products were the primary drivers of this growth; individual non-single premium income rose by 16.5%, while individual single premium business grew by 7.7%.

Among listed insurers, SBI Life Insurance recorded growth of approximately 23%, while ICICI Prudential Life Insurance saw an 18.9% increase in premium income, aligning with the industry average. Meanwhile, HDFC Life recorded a modest growth of 2.9%.

This momentum extended to the volume of policies as well; the sector sold 5% more new policies in the first two months of the current fiscal year compared to the same period last year.

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