Life insurance premium growth slows as LIC's momentum eases in May

Industry premium growth moderated to 5.1 per cent in May as group single premiums normalised and LIC's growth slowed, though private insurers continued to gain market share

The life insurance industry, after starting FY27 on a high, recorded a moderation in new business premium growth in May 2026, with premiums rising 5.1 per cent year-on-year (Y-o-Y) to Rs 32,030.9 crore. The slowdown was largely due to normalisation in group single premiums and base effects, particularly as the Life Insurance Corporation (LIC)’s growth eased to 3.5 per cent Y-o-Y, pulling down overall momentum.

 

The moderation in growth may also partly reflect a cautious approach by customers amid heightened geopolitical uncertainties, including the ongoing West Asia crisis, which could have led to some postponement of insurance purchases during the month. Consequently, a portion of this business may materialise in the coming months.

 

Despite this moderation, underlying demand conditions remained resilient, supported by strong growth in individual non-single premiums (13.5 per cent Y-o-Y) and continued traction from private insurers, which grew faster at 7.7 per cent Y-o-Y, further strengthening their market position. On a year-to-date FY27 basis, industry performance remained strong, with overall premium growth at 19.4 per cent.

 

The slower growth largely reflects base effects and normalisation in group business, particularly the group single segment, which accounts for the largest share of industry premiums and recorded a modest 2.8 per cent Y-o-Y growth. Overall growth was supported by the individual non-single premium segment, which expanded by 13.5 per cent Y-o-Y.

 

Private insurers continued to outperform, reporting 7.7% growth compared with 3.5% growth for LIC.