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Jun 10, 2026
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Life insurers report weakest growth in over 8 months in May
Life insurers reported 5% year-on-year growth in new business premium (NBP) in May, the slowest monthly expansion in more than eight months, as the impact of the GST rate reduction on premium collections faded after supporting double-digit growth in the preceding months.
The industry’s total new business premium stood at Rs 32,030.84 crore in May, compared with Rs 30,463.21 crore in the same month last year, according to data released by the Life Insurance Council. The slowdown comes a month after life insurers reported their highest monthly growth in NBP in more than two years. In April, the industry’s NBP had risen 39% year-on-year to Rs 30,550 crore.
According to the May data, state-owned Life Insurance Corporation of India (LIC) reported a 3% growth in NBP to Rs 19,042 crore, while the 26-member private life insurance industry posted an 8% increase to Rs 12,989 crore. Both LIC and private life insurers had reported strong double-digit growth in recent months after the government exempted individual life insurance products, including term life policies, from GST in September 2025.
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