Life insurers delivered robust growth in the first half of FY26, with first-year premium rising 20.6% year-on-year to ₹2.46 lakh crore during April-September 2026, according to latest data from the Insurance Regulatory and Development Authority of India (IRDAI). The industry collected ₹48,781 crore in September alone, up 21.3% from ₹40,207 crore in the corresponding period last year, indicating sustained momentum in new business acquisition. LIC continued to dominate the market with first-year premium increasing 19.3% to ₹1.44 lakh crore during the six-month period, while private life insurers collectively accounted for the remaining business with several major players reporting strong double-digit growth.
According to IRDAI data, individual non-single premiums showed strong performance with 12.7% growth to ₹57,942 crore, while individual single premiums grew 16.6% to ₹29,140 crore. Among private insurers, ICICI Life achieved the strongest growth with premium rising 25% to ₹11,821 crore, followed by Bajaj Life with 39.8% increase to ₹8,848 crore. HDFC Life recorded an 18.3% increase to ₹19,571 crore, maintaining its competitive position. However, group non-single premiums declined significantly by 49.6% to ₹905 crore, highlighting uneven growth across product segments and the mixed performance across major players in the individual APE space.
According to IRDAI's data, group single premiums demonstrated strong performance with 24.3% growth to ₹1.45 lakh crore, while individual non-single premiums increased 12.7% to ₹57,942 crore. Policy volumes, measured by the number of policies, rose 6%, compared with a 3% decline in the year-ago period, indicating improving market engagement despite premium growth moderation. The strong September numbers demonstrate continued market expansion and customer engagement across the insurance sector, with the latest data showing sustained momentum in both individual and group policy segments.
IRDAI Chairman Ajay Seth, a career bureaucrat who spent decades in the finance ministry and retired as Economic Affairs Secretary, was appointed as IRDAI's chairman in July 2025. As per The Economic Times, Seth announced that the regulator is examining industry feedback on its consultation paper open until October 25, while maintaining that distribution costs must be aligned with policyholder value. The regulator is open to a reasonable transition period for implementing proposed caps on insurance commissions, but emphasized that the reform cannot be postponed indefinitely. The reduction in management expenses is proposed to be phased over five years, with any transition designed to avoid undesirable intermediate outcomes. Seth acknowledged industry suggestions for tiered expense structures like mutual funds, noting that existing framework already provides relaxation for new insurers in their first five years.
Chairman Seth addressed rising health insurance costs, acknowledging that health insurance is at an unstable equilibrium and the regulator's effort is to move it towards sustainability. He pointed out that goods and services tax exemption on individual health policies had lowered costs for customers, leading to much higher growth in health insurance. For senior citizens, insurers must consult IRDAI before raising premiums by over 10% annually, and the regulator is studying claims and medical inflation through provider-payer working groups. Seth highlighted the opportunity is compelling: low penetration, rising incomes, a young population and improved affordability after GST exemption, noting that implementation of Ind AS aligned with IFRS 17 from April 2026 will attract global investors.
