India’s life insurance industry is expected to sustain its growth trajectory in the 2027 financial year, with retail annualised premium equivalent (APE) forecast to increase by 11–12 per cent, according to a report by Emkay Research.
Private life insurers are likely to remain the main contributors to industry-wide expansion. The brokerage expects retail APE for private insurers to rise by 13–14 per cent in FY27, compared with a projected 7–8 per cent increase for the Life Insurance Corporation of India (LIC).
The forecast follows a strong performance in August, when retail APE across the life insurance industry increased by around 14 per cent year on year. Private insurers posted growth of approximately 15 per cent, while LIC recorded growth of about 13 per cent. However, Emkay pointed out that LIC’s August performance benefited partly from a relatively low base in the corresponding period of the previous year.
Looking at a longer-term measure, the industry recorded around 7 per cent growth in retail APE on a two-year compound annual growth rate basis in August. Private insurers achieved approximately 8 per cent growth on the same basis, while LIC registered around 4 per cent.
The April–August period also produced encouraging numbers. Industry-wide retail APE increased by approximately 14 per cent during the five months. Private life insurers recorded 13 per cent growth, while LIC reported a stronger 15 per cent increase.
LIC also strengthened its position in the renewal premium segment. Its retail weighted received renewal premium (RWRP) market share rose by around 40 basis points to 29.9 per cent, according to the Emkay report. The measure provides an indication of the contribution of renewal premiums to insurers’ business and is closely watched when assessing the quality and sustainability of an insurer’s premium base.
Among listed private insurers, SBI Life emerged as the fastest-growing major player in August. Its retail APE climbed by around 22 per cent year on year. HDFC Life followed with growth of approximately 17 per cent, while ICICI Prudential Life recorded around 11 per cent growth on an RWRP basis.
Growth was comparatively slower at Axis Max Life, where the rate moderated to about 10 per cent. Emkay attributed the softer performance, at least partly, to a slowdown in the company’s agency channel. Canara HSBC Life recorded around 6 per cent growth, although the brokerage noted that the comparison was against a high base.
The broader new-business picture also remained positive. Total retail and group new business premium, measured on an RWRP basis, increased by 9.1 per cent year on year in August. Private insurers recorded a considerably stronger 12.7 per cent increase, while LIC posted growth of 3 per cent.
The figures point to continued demand across both individual and group insurance products, although the pace of expansion varies significantly between insurers and distribution channels. Private companies have increasingly focused on retail customers and diversified distribution networks, while LIC continues to operate on a much larger scale across the Indian insurance market.
Despite the positive operating trends, life insurance stocks remain under pressure amid expectations of changes to commission regulations. Such regulatory developments could affect the economics of insurance distribution, particularly for businesses that rely heavily on agents and other intermediaries.
Emkay Research, however, maintains a positive view of the sector’s growth prospects. The brokerage believes that current valuations do not fully reflect the underlying strengths of life insurance companies, including their brands, distribution capabilities and scale.
According to the research firm, private insurers are likely to remain the principal drivers of growth in FY27. Continued retail demand, combined with extensive distribution networks, is expected to support their expansion even as insurers adjust to regulatory changes affecting commissions.
Overall, the latest industry figures suggest that India’s life insurance market entered FY27 with a relatively strong growth base. While regulatory changes and differences in distribution performance could influence individual companies, the broader sector is expected to retain its upward momentum, with private insurers positioned to lead the next phase of expansion.