Life Insurance sector posts 4.25% growth in new business premiums for June

The life insurance industry recorded a strong performance in June 2025, with new business premiums (NBPs) rising by 4.25 per cent year-on-year, according to data released by the Life Insurance Council.

Premium collections grew from Rs 89,726.7 crore in June 2024 to Rs 93,544.54 crore this year, reflecting growing momentum in the sector.

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The surge was driven by robust growth in both individual single and non-single premium segments.

Individual single premiums jumped 21.91 per cent year-on-year to RS 4,661.52 crore in June 2025, while individual non-single premiums rose 9.per cent to Rs 9,058.63 crore.

As per the data, the year-to-date growth remained positive across categories. Individual single premiums showed an 11.56 per cent increase, while individual non-single premiums were 4.42 per cent higher compared to the same period last year.

Combined individual premium collections rose 13.07 per cent in June 2025 and 6.72 per cent on a cumulative basis for the fiscal year so far.

The Council attributed this growth to insurers’ continued push to bring first-time buyers into the insurance fold and offer comprehensive life protection solutions.

“These figures highlight the growing awareness and need for financial protection among Indian households,” the Life Insurance Council said in a statement.

Supporting the rise in new business was a continued expansion of the life insurance distribution network. In June, over 2.42 lakh new agents were added, marking a 1.02 per cent increase in the cumulative agent base.

Combined with ongoing digitisation initiatives, this is expected to improve insurance penetration across urban and rural India.

The industry’s performance underscores the increasing demand for life insurance from both individuals and corporate clients. Insurers are also witnessing growth in tier-2 and tier-3 cities, where awareness campaigns and digital onboarding tools are helping reach previously underserved populations.

With sustained momentum, the life insurance sector is poised for further growth in the coming quarters, supported by a blend of product innovation, technology adoption, and expansion of agent networks.