Life insurance sector new business premium surges around 16% in FY26

The life insurance sector reported a three-fold jump in growth, with new business premium (NBP) soaring 15.60% year-on-year to a record Rs 4.60 lakh crore in FY26. The growth was primarily driven by the Goods and Services Tax (GST) rate cut from 18% to nil on individual life insurance policies, which triggered strong demand, particularly for pure protection products like as term insurance. FY26 also recorded a return to double-digit growth after two consecutive years of lax growth expansion. Life Insurance Corporation (LIC), the country?s largest life insurer, reported a 15% year-on-year increase in new business premium to Rs 2.60 lakh crore. In comparison, the 26-member private life insurance industry rose 17% to Rs 1.99 lakh crore.