Sunday, 3rd May 2026
Khabor Wala Desk
Published: 10th March 2026, 10:14 AM
India’s life insurance industry demonstrated robust growth in February 2026, with total premiums rising more than 20% year-on-year, propelled by strong sales of traditional policies and sustained demand across both public and private insurers, according to a report by Motilal Oswal Financial Services.
The industry’s individual weighted received premium (WRP) expanded by approximately 21% in February, a marked recovery from the single-digit growth recorded in the previous month. The resurgence was largely driven by Life Insurance Corporation of India (LIC), which outpaced private sector insurers with around 23% growth, extending its lead for the third consecutive month. Private insurers, by comparison, grew roughly 20% during the same period.
Among private players, Canara HSBC Life Insurance emerged as the fastest-growing company, posting growth exceeding 60%, followed by Max Life. Other major insurers, including SBI Life, HDFC Life, ICICI Prudential, and Bajaj Allianz Life, recorded moderate increases. Despite the strong expansion, the overall market share of private insurers in individual WRP slightly declined to 73% from 73.4% a year earlier, reflecting LIC’s recent momentum.
| Insurer | YoY Growth (WRP) | Market Share (Individual WRP) | Notes |
|---|---|---|---|
| LIC | 23% | 27% | Dominates policy volumes; lower average ticket size |
| Canara HSBC Life Insurance | 60%+ | – | Fastest-growing private insurer |
| Max Life | ~30% | – | Steady growth in new business |
| SBI Life | ~20% | 12.1% | Largest private market share |
| HDFC Life | ~18% | 11.9% | Largest private insurer on unweighted basis |
| ICICI Prudential | ~15% | – | Moderate growth |
| Bajaj Allianz Life | ~14% | – | Moderate growth |
New business premiums across the sector also rose by around 18% year-on-year, underscoring sustained interest in both protection and savings products. Policy volumes strengthened further, with the total number of policies increasing by approximately 23%, indicating healthy demand across the market.
The report highlighted a gradual increase in average ticket size among private insurers, suggesting a shift toward higher-value policies, particularly in the individual regular premium segment. In contrast, LIC continues to dominate in volume, though its average policy size remains comparatively lower.
Motilal Oswal projects that the sector will maintain steady growth in the coming months, aided by continued focus on traditional products, improved affordability following GST exemptions on select policies, and private insurers’ expansion into new regions. Analysts remain positive on the industry’s prospects, citing strengthened distribution networks, greater awareness of long-term savings, and rising demand for insurance coverage across India.
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