India's life insurance sector achieved a historic milestone in FY26, with New Business Premium (NBP) rising 15.7% to ₹4.59 lakh crore, crossing the ₹4 lakh crore mark for the first time. According to data released by the Life Insurance Council (LIC), the NBP reached ₹4,59,713 crore in FY26, up from ₹3,97,336 crore in FY25. This represents a significant acceleration from the previous year's growth of 5.7% in FY25 and 2% in FY24, demonstrating the sector's robust momentum. The growth was led by both public and private sector insurers, with Life Insurance Corporation recording ₹2,60,464 crore in NBP, growing 14.91% from ₹2,26,669 crore in the previous year. Private life insurers demonstrated even stronger performance with total NBP growing 16.75% to ₹1,99,249 crore from ₹1,70,667 crore, as reported by the Life Insurance Council.
The primary driver behind this exceptional growth was the GST waiver on life insurance premiums, which significantly boosted consumer demand and sector performance. As reported by The Hindu BusinessLine, this policy measure provided substantial relief to policyholders and contributed to the sector's record-breaking performance in FY26. The waiver's impact was particularly evident in the strong growth rates achieved across both public and private insurers, highlighting its effectiveness in stimulating market demand. The growth trajectory demonstrates the sector's resilience and the continued positive impact of policy reforms on insurance penetration in India.
