Life insurance industry’s savings biz in Q1FY27 hit due to West Asia uncertainties

According to Emkay Research, the protection segment of the nation’s life insurance sector maintained its upward trend in Q1 FY27, helped by the GST rate waiver, whereas the savings segment faced headwinds from geopolitical strains linked to the West Asia conflict and the wider macro‑economic backdrop. | Photo Credit: Getty Images

According to Emkay Research, the protection segment of the nation’s life insurance sector maintained its upward trend in Q1 FY27, helped by the GST rate waiver, whereas the savings segment faced headwinds from geopolitical strains linked to the West Asia conflict and the wider macro‑economic backdrop.

Emkay Research’s Thursday report noted that in 1QFY27 private insurers posted roughly 15% YoY growth in retail APE, while state‑owned LIC recorded about 19% YoY retail APE growth, pushing the industry’s overall retail APE increase to around 16%.

In June, the industry posted a solid 16% YoY rise in retail APE, buoyed by LIC’s 21% jump and a ~14% increase from private players. Emkay Research added that over a two‑year CAGR, private insurers grew 13% in retail APE, LIC about 11%, yielding an industry‑wide 12.6% retail APE growth.

Group‑segment APE surged 56% YoY in June 2026, powered by a 92% jump from private insurers, whereas LIC contributed roughly a 31% increase.

The report highlights that among listed private firms, SBI Life Insurance led in June with an 18% YoY retail APE gain, trailed closely by Axis Max Life Insurance at about 15%.

The strong showings of SBI Life and Axis Max were built on a solid foundation. The report notes that ICICI Pru Life posted a 13% YoY rise in RWRP (retail weighted received premium) but only a modest 9.6% increase in retail APE for June 2026. HDFC Life’s performance was flat, with a 0.4% dip in retail APE due to a slowdown in the HDFC Bank channel, while Canara HSBC Life delivered a vigorous 28% YoY retail APE increase, also off a strong base.

Emkay Research forecasts that the nation’s life insurance sector will see 11‑12% retail APE growth this fiscal year, driven by an anticipated 13‑14% rise from private insurers, while LIC is projected to contribute roughly 6‑7% retail APE growth.

CareEdge Ratings’ Thursday report said India’s life insurance market got off to a robust start in FY27, with new business premiums (NBP) up 16.6% YoY in Q1FY27, indicating steady demand in both retail and group lines.

CareEdge attributed the rise mainly to private insurers, whose premium inflows rose sharply thanks to ongoing strength in retail offerings and a revival in group business.

As a result, private insurers lifted their market share to close to 40%, though LIC still holds the bulk of industry premiums. Industry APE kept its upward trajectory in Q1FY27, climbing 23.4% YoY, with private insurers’ APE up 27.6% YoY and LIC’s APE rising a healthy 16.8% YoY.

Published: July 9, 2026