The Indian life insurance industry started the first quarter of the 2026-27 financial year (Q1FY27) with a mix of good and bad news. According to a report by Emkay Research, people are still buying life protection plans. This growth was helped by the GST (Goods and Services Tax) exemption on these products. However, the savings business faced a slowdown. This was mainly due to fights happening in West Asia and other global economic problems that made people nervous about investing.

Even with these troubles, the overall industry performance looked steady. For the first quarter, private insurance companies saw a 15 per cent growth in Retail Annual Premium Equivalent or APE (this is a measure used to calculate the value of new retail business). Meanwhile, the government-owned Life Insurance Corporation (LIC) did even better with 19 per cent growth. Together, the entire industry grew by about 16 per cent in retail APE during this period.

In the month of June alone, LIC was the star performer. It recorded a 21 per cent growth in retail APE. Private insurers grew by about 14 per cent in the same month. If we look at the Group APE (insurance sold to big groups like companies for their employees), the industry saw a huge jump of 56 per cent. Private players led the way here with a massive 92 per cent growth, while LIC grew its group business by 31 per cent.

Among the private listed companies, SBI Life was the top performer in June with 18 per cent growth. Axis Max Life followed closely with 15 per cent. ICICI Prudential Life saw a 9.6 per cent growth in retail APE. On the other hand, HDFC Life had a weak month with a 0.4 per cent drop. This was mostly because of a slowdown in sales through the HDFC Bank branch channel. Another notable performer was Canara HSBC Life, which grew by 28 per cent.

Looking ahead, Emkay Research expects the industry to grow by 11-12 per cent overall this year. Private companies are expected to grow faster at 13-14 per cent, while LIC might grow at a slower pace of 6-7 per cent. CareEdge Ratings also noted that private insurers are gaining more ground, now holding nearly 40 per cent of the market share, even though LIC is still the biggest player.

For bank officers working in the bancassurance (selling insurance through banks) segment, this means there is still a high demand for protection plans. However, customers might be hesitant to put money into savings-linked insurance products because of global tensions. Staff should focus on the tax benefits and security of these products to help customers navigate the current market uncertainty.