India’s life insurance industry surges 40% YoY in December 2025

This was a rebound from the contraction seen in August 2025.

India’s life insurance industry posted its strongest monthly growth in nearly two years in December 2025, with new business premiums rising 39.5% year on year to $$4.6b (₹421.5b), according to CareEdge Ratings. 

This marked the fourth straight month of double-digit growth and a sharp turnaround from a 5.2% contraction in August 2025 and a 21.5% decline in December 2024.

The rebound was driven by broad-based growth across individual and group segments, with a strong surge in group premiums and policy issuances. 

Life Insurance Corporation of India (LIC) outperformed private insurers, supported by a favourable base and adjustments following the GST waiver on individual life policies.

Annual Premium Equivalent (APE) for the industry rose 28.3% year on year in December, led by a 44.1% increase at LIC and a 22.8% rise among private insurers. 

On a year-to-date FY26 basis, APE grew 12.8% year on year.

CareEdge said demand is normalising after the GST waiver on individual life and health insurance premiums improved affordability and lifted sales of recurring premium products. 

The agency expects the life insurance industry to grow at a compound annual rate of 8% to 11% over the next two years, supported by regulatory measures, product innovation and wider digital adoption.

Private insurers are also expanding their regional presence and rolling out digital initiatives such as Bima Sugam under the Bima Trinity framework, which CareEdge said should support a sustained recovery and longer-term growth.

($1.00 = ₹90.35)