India’s life insurance industry is expected to sustain its growth momentum in the 2027 financial year, with retail annualised premium equivalent (APE) projected to expand by 11–12 per cent, according to a report by Emkay Research.
Private life insurance companies are expected to remain the main contributors to the sector’s expansion. Their retail APE is forecast to rise by 13–14 per cent in FY27, compared with an estimated 7–8 per cent growth for Life Insurance Corporation of India (LIC), the brokerage said.
The outlook follows a strong performance in August, when retail APE across the industry increased by around 14 per cent year on year. Private insurers recorded growth of approximately 15 per cent, while LIC posted around 13 per cent growth. Emkay noted, however, that LIC’s performance benefited partly from a relatively low base in the corresponding period of the previous year.
Looking beyond the annual comparison, the industry’s two-year compound annual growth rate for retail APE stood at around 7 per cent in August. Private insurers recorded approximately 8 per cent growth on this basis, while LIC registered around 4 per cent.
The performance during the first five months of the financial year has also remained encouraging. Between April and August, industry-wide retail APE increased by around 14 per cent. Private insurers recorded growth of approximately 13 per cent, while LIC posted a higher 15 per cent increase over the same period.
LIC also strengthened its position in the renewal premium segment during August. Its retail weighted received renewal premium (RWRP) market share increased by around 40 basis points to 29.9 per cent, according to the Emkay report. Renewal premiums are an important indicator of the persistence of an insurer’s existing policy base, as they reflect premiums collected from policies that continue beyond their initial period.
Among the major listed private insurers, SBI Life emerged as the fastest-growing player in August. Its retail APE increased by around 22 per cent compared with the same month a year earlier.
HDFC Life followed with growth of approximately 17 per cent. ICICI Prudential Life recorded around 11 per cent growth on an RWRP basis.
Growth at Axis Max Life moderated to around 10 per cent. Emkay attributed the slower pace partly to a likely deceleration in the company’s agency channel, which is an important distribution route for life insurance products. Canara HSBC Life recorded around 6 per cent growth, although the comparison was against a high base from the previous year.
The broader new-business picture also remained positive in August. Total retail and group new-business premium, measured on an RWRP basis, increased by 9.1 per cent year on year. Private insurers registered considerably stronger growth of 12.7 per cent, while LIC recorded a 3 per cent increase during the month.
The report comes at a time when life insurance companies and their investors are also assessing the possible impact of changes to commission regulations. Concerns over the implications of forthcoming regulatory measures have put pressure on life insurance stocks, despite the sector continuing to show healthy operating trends.
Emkay Research nevertheless maintained a positive view of the industry’s underlying growth prospects. The brokerage argued that current valuations do not fully reflect the fundamental strengths of life insurance companies, including their established brands, distribution networks and scale of operations.
Private insurers are therefore expected to remain at the centre of the sector’s growth in FY27. Strong retail demand, combined with established distribution channels, could help them maintain their lead over the broader industry. At the same time, LIC’s sizeable market presence and improving renewal premium share remain significant factors in the competitive landscape.
The latest figures suggest that India’s life insurance market is entering FY27 with relatively strong momentum, although the pace of growth among individual insurers is likely to vary depending on distribution performance, comparison bases and the impact of regulatory changes.
