NEW DELHI, July 12: The Indian life insurance industry registered new business premiums of Rs 41,117.1 crore in June amid the ongoing impact of the revised surrender value regulations, lower credit life sales, and group single premiums, according to a new report. CareEdge Ratings expects the life insurance industry to continue to grow at 10 per cent-12 per cent over a three-to-five-year horizon, driven by product innovation along with supportive regulations, rapid digitalisation, effective distribution, and improving customer services.
In June, the annual premium equivalent (APE) rose by 2.5 per cent, a slower growth rate compared to the 20.0 per cent increase in the same period last year.
In APE terms, the industry grew at an 11.0 per cent compounded annual growth rate (CAGR) between June 2023 and June 2025. During this period, private insurers grew at 15.4 per cent, according to the report.
“The first quarter is typically a slow period for the life insurance sector, as it follows the fiscal year-end when most retail customers have already purchased policies in a last-minute rush,” said Saurabh Bhalerao, Associate Director, CareEdge Ratings.
In Q1 FY26, the quarter-on-quarter growth has increased by 4.3 per cent compared to 22.9 per cent growth in the same quarter a year ago, mainly because of muted consumer demand and the impact of revised surrender value guidelines, which were effective October 1, 2024. (IANS)
