India life insurers post 22.4% rise in July new business premiums

The market is expected to grow 10% to 12% annually over the next 3-5 years.

India’s life insurance industry recorded a 22.4% year-on-year increase in new business premiums in July 2025, reaching Rs 38,958.1 crore. 

This reversed the 3.1% decline seen in June and exceeded the 14.2% growth posted in July 2024. 

The growth was supported by a favourable base effect and strong demand for single premium products.

Annual Premium Equivalent (APE) grew 15.3% in July, compared with 16.3% in the same month last year. 

Between July 2023 and July 2025, the industry’s APE rose at a 15.8% compounded annual growth rate (CAGR), with private insurers expanding at 19.9% compared to Life Insurance Corporation of India’s (LIC) 9.3%.

CareEdge Ratings said growth in unit-linked insurance plans (ULIPs) remained muted due to market volatility, whilst group business drove July’s performance. 

It expects the sector to grow 10% to 12% annually over the next three to five years, supported by product innovation, regulatory measures, digitalisation, and improved distribution.

Private insurers reported gains in both individual and group segments, whilst  LIC maintained its lead in the group business. 

A recovery in FY 2026 is anticipated, helped by wider geographical reach from private players and initiatives such as the Bima Trinity programme.