Life insurers’ new business for September rises 15% to ₹40,207 cr. 

Life insurance companies in India reported new business premium increased by almost 15% in September to ₹40,206.67 crore from ₹35,020.28 crore year earlier.

The first-year premium, as it is also known, was higher despite a sharp dip year-on-year in the number of policies/schemes they sold at 22,06,302 (32,17,880).

Market leader, the State-owned Life Insurance Corporation of India (LIC) posted 12.70% increase in the first-year premium in September to ₹22,957.09 crore (₹20,369.26 crore).

Private life insurers, numbering 26, together clocked ₹17,249.58 crore new business, which was 17.73% more compared ₹14,651.02 crore a year earlier.

While the number of polices/schemes sold during the month was comparatively lower for both the State-owned and private insurers, the decline was sharper for LIC at 13,57,908 (2351433). For private players, the number stood at 8,48,394 (8,66,447).

The growth in NBP was driven by the group business, especially the single premium segment, which more than offset the decline in individual premiums. Individual non-single policies continued to fall due to the base effect and surrender value regulations. This decline is expected to normalise next month onwards, said Saurabh Bhalerao, Associate Director, Head BFSI at CareEdge Ratings.

He said private players were able to offset the decline in policies by increasing the premiums received per policy.

For the six months ended September, the first-year premium of all life insurers was 7.64% higher at ₹2,03,668.19 crore (₹1,89,214.04 crore). The number of policies and schemes sold was more than 14% lower, in the first half of the fiscal, at 1,14,56,428 (1,33,68,856), the numbers released by the Life Insurance Council showed.

The new business of LIC for the first six months of FY26 rose 4.72% to ₹1,21,008.19 crore (₹1,15,549.88 crore), while private players registered a 12.21% increase at ₹82,660 crore (₹73,664.16 crore).

The segment is expected to see the impact of GST reforms from October 2025 which are likely to boost affordability, increase coverage among existing customers and attract new policyholders. A gradual recovery is expected in FY26, supported by private insurers expanding their reach through deeper geographical penetration and the launch of the Bima Trinity, including the Bima Sugam digital marketplace, Mr.Bhalerao said.