India's life insurers report 8.4% rise in premiums for April 2025

Growth in individual non-single premium policies declined by 13.6% YoY.

India’s life insurance industry recorded a subdued start to fiscal year 2026 (FY 2026), with New Business Premiums (NBP) rising by 8.4% year-on-year (YoY) to ₹21,965.7 crore in April 2025.

Annual Premium Equivalent (APE) growth slowed sharply to 4.4% compared to 22.0% in April 2024, with Life Insurance Corporation of India (LIC) driving the increase primarily through the group single premium segment.

Growth in individual non-single premium policies declined by 13.6% YoY, with only 10.8 lakh such policies sold in April. 

This drop is partly attributed to ongoing adjustments to sum assured and commission structures following the revised surrender value guidelines, which came into effect on 1 October 2024. 

These regulatory changes are still being absorbed across the industry.

In terms of long-term performance, the life insurance sector posted a compounded annual growth rate (CAGR) of 12.8% in APE from April 2023 to 2025. 

April is typically a slower month for life insurers due to the post-fiscal year-end lull. 

The performance of unit-linked insurance plans (ULIPs) was also dampened by market volatility. However, growth in group insurance, especially from LIC, provided some offset.

CareEdge Ratings anticipates gradual recovery through FY 2026, supported by expanding agency networks, increased geographic outreach by private players, and the rollout of initiatives such as the Bima Trinity. 

The proposed Insurance Amendment Act is also expected to improve industry penetration by easing market entry for new insurers.

The life insurance industry is projected to grow at a rate of 10% to 12% over the next three to five years, backed by regulatory support, digital adoption, broader distribution, and continued product innovation.