LIC: In November, India’s life insurance market saw a significant recovery, with leading

LIC: According to a recent survey, the life insurance market in India saw a significant recovery in November, with new-business premiums rising by 23% year over year to Rs 31,119.6 crore.

For the third straight month, the life insurance sector maintained its double-digit monthly growth trend. Strong performance in both the individual and group sectors, as well as an increase in individual non-single plans, were the main drivers of the recovery.

According to the CareEdge Ratings study, this upswing was further bolstered by a favorable base effect and a more seamless transition after the GST waiver for individual life insurance, which helped to sustain the industry’s development momentum.

While private insurers maintained double-digit growth, LIC maintained its market-leading position thanks to robust performance in both individual and group categories.

The group industry profited from a resurgence in institutional activity, while individual non-single premiums saw noteworthy rises, indicating robust recurrent inflows.

The sector’s overall trend is still favorable, even if the yearly renewal rate for group policies decreased because of an extraordinarily high prior-year base.

The research states that cumulative first-year premiums for year-to-date (YTD) FY26 climbed at a stable, sustainable rate, mostly due to private players. This indicates a return to normal growth after the brief boost from recent regulatory reforms.

Following a 19.8% drop the year before, life insurers saw a notable uptick in single-premium business in November, with a 29.4% (on-year) increase.

While the market favored individual non-single plans after the GST reduction, non-single premiums increased somewhat by 14.3% as a result of a drop in group renewals. While LIC continued to dominate the single-premium market because to its strength in group business services, private insurers significantly improved their standing in the individual non-single category.

Premiums for individual life insurance increased by 26.4%, a significant rise from only 7.7% the previous year.

Sanjay Agarwal, Senior Director at CareEdge Ratings, claims that November saw a robust recovery in the life insurance market in India.

He said that the sector has overcome agency-led distribution challenges since the change in surrender value regulations last year, as seen by the widespread increase in client engagement that coincides with the boom in policy issuance.