MUMBAI: The life insurance industry recorded a 15.7% expansion in new business premiums during FY26, as the sector navigated a landscape defined by diverging growth strategies across individual and group segments. Total premiums across the industry climbed to Rs 4.6 lakh crore from close to Rs 4 lakh crore in FY25. This momentum highlights a robust recovery and deepening penetration in the domestic market after the volatility of recent years.
The number of policies sold during the same period increased by only 4.7% to 2.8 crore from 2.7 crore in FY25. Market share dynamics shifted in favour of private players, with SBI Life leading the gains through a 0.3% increase in its total share. Aditya Birla Sun Life and Kotak Mahindra Life followed with increases of 0.2% each. Conversely, HDFC Life experienced the most significant contraction, losing 0.5% of its market share. LIC also recorded a decline of 0.4% in its total market presence during this period.Growth in the individual non-single premium segment was spearheaded by SBI Life, which saw an absolute increase of Rs 2,445.6 crore or 19.6% over the year . Axis Max Life and Tata AIA Life also demonstrated strength in this category, recording 19% increases of Rs 1,532 crore and Rs 1,504.7 crore respectively. The group insurance segment acted as a vital stabiliser for several insurers whose individual portfolios remained stagnant.Credit Access Life achieved a total growth of Rs 432.6 crore entirely through group business, as its individual segment growth stood at zero. PNB MetLife, on the other hand, recorded a total increase of Rs 670.7 crore, supported by an Rs 886.5 crore rise in group insurance that offset a Rs 215.8 crore decline in its individual business.LIC maintained its position as the largest market participant with a total premium exceeding Rs 2.6 lakh crore. Its operations remain heavily weighted towards the group segment, which contributed Rs 1.9 lakh crore, or around 74% of its total new business premium in FY26. While its overall share dipped, the sheer scale of its group operations remains a significant factor in the industry.Private competitors demonstrated varying degrees of segment concentration. SBI Life drew roughly 70% of its total, amounting to Rs 29,782 crore, from individual business. Axis Max Life showed even higher concentration, with the individual segment comprising over 85% of its total premium at about Rs 12,377 crore. HDFC Life and ICICI Prudential Life Insurance, meanwhile, pursued distinct structural paths within their respective portfolios.