India’s life insurance market closed FY26 with strong momentum, as total new business premium (NBP) grew 15.7% year-on-year to ₹4,59,713 crore, compared to ₹3,97,337 crore in FY25, signalling sustained expansion across segments.
Monthly data indicates continued acceleration, with March 2026 collections at ₹75,872 crore, up from ₹61,439 crore in March 2025. The growth trajectory was primarily led by the group segment, which remained the key driver of overall market expansion. Group Single Premium rose 17.5% to ₹2,49,766 crore, while Group Yearly Renewable Premium recorded a sharp 39% increase. Group Non-Single Premium also posted strong gains, albeit on a lower base.
The individual segment showed steady performance, underlining stable retail participation. Individual Non-Single Premium increased 10.1% to ₹1,26,900 crore, while Individual Single Premium grew 12.3% to ₹57,664 crore, reflecting sustained demand for long-term savings and protection products.
Policy issuance stood at over 2.83 crore in FY26, up 4.7% year-on-year. The faster rise in premium compared to policy volumes indicates higher average ticket sizes and a shift towards improved product mix.
According to Kamlesh Rao of the Insurance Awareness Committee (IAC-Life), the growth reflects rising awareness and increasing adoption of structured financial protection, though a significant protection gap continues to present an opportunity for further expansion.