India’s Life Insurance Sector Sees Steady Growth with 4.25% Rise

Lucknow. India’s life insurance sector has demonstrated resilience and steady expansion, as per the latest industry data released by the Life Insurance Council. The New Business Premium (NBP) for June 2025 rose by 4.25% year-on-year, reaching ₹93,544.54 crore compared to ₹89,726.7 crore in the same month last year. This upward trend highlights the growing awareness and demand for financial protection among individuals and corporations across the country.

The sharpest surge was observed in the individual single premium segment, which grew by an impressive 21.91% YoY, amounting to ₹4,661.52 crore in June 2025. Since the beginning of the fiscal year, this segment has seen an overall growth of 11.56%, showcasing rising customer interest in one-time premium insurance products.

Similarly, the individual non-single premium segment registered a solid 9% monthly rise, climbing to ₹9,058.63 crore. On an annual basis, this reflects a 4.42% increase, indicating consistent market momentum.

The combined performance of individual premiums also remained strong, with a 13.07% YoY increase in June alone. From April to June 2025, this segment grew by 6.72%, a clear sign that first-time insurance buyers are responding to the industry’s outreach efforts.

According to the Life Insurance Council, this overall growth is the result of proactive strategies adopted by insurers to expand their customer base and deepen insurance penetration. By promoting affordable and need-based products, companies are encouraging more individuals, especially from underinsured regions, to secure their financial future through life insurance.

One of the key drivers of this growth is the rapid expansion of the agent network. In June 2025, over 2.42 lakh new insurance agents joined the industry, resulting in a 1.02% increase in the total number of active agents. This significant addition not only enhances physical outreach but also strengthens insurers' last-mile delivery efforts.

Alongside traditional channels, digital transformation has played a vital role. Insurers have increasingly embraced technology-driven initiatives, including paperless onboarding, app-based policy services, and virtual consultations, to broaden their customer base. These innovations have made insurance more accessible, especially in tier-2 and tier-3 cities.

The consistent improvement in premium collections and policyholder base signifies that the life insurance sector is not just recovering post-pandemic, but also setting the foundation for long-term growth. The combination of agent outreach and digital innovation is expected to fuel further acceleration in new business premiums in the upcoming quarters.

As India moves toward greater financial inclusion, life insurance is becoming an essential pillar of family financial planning. With strong industry fundamentals and rising consumer awareness, the sector is poised for robust expansion in the coming years.