Life Insurers’ New Business Premium Rises 21% in July
Life insurers recorded strong growth in new business premiums in July 2026, with first-year premium increasing 20.7% year-on-year to Rs. 47,005 crore compared with Rs. 38,958 crore in July 2025.
According to data released by the Insurance Regulatory and Development Authority of India (IRDAI), Life Insurance Corporation of India (LIC) led industry growth, with its premium rising 23.8% to Rs. 27,993 crore. Private life insurers reported a 16.3% increase, reaching Rs. 19,011 crore.
The number of policies and schemes issued increased marginally by 0.9% to 22.98 lakh during July. However, lives covered under group schemes declined 6.6% to 2.15 crore.
During April-July 2026, the industry’s first-year premium grew 17.5% to Rs. 1.56 lakh crore. Private insurers recorded stronger growth of 23%, compared with LIC’s 14% increase during the period.
Policybazaar Offers Dollar-Denominated Term Plans for NRIs
Digital insurance platform Policybazaar has launched US dollar-denominated term insurance plans for non-resident Indians through partner insurers operating via the International Financial Services Centre (IFSC), GIFT City, Gujarat.
The facility allows NRIs to pay premiums and receive claim benefits in US dollars, helping address currency depreciation risks faced by Indians living overseas.
Policybazaar said the initiative highlights the growing role of GIFT City in providing internationally aligned financial products within India’s regulatory framework. The IFSC has enabled access to banking, investment and insurance solutions that were traditionally available through overseas financial centres.
According to Vivek Jain, Chief Business Officer-Life Insurance at Policybazaar, GIFT City has created opportunities for new financial products targeted at global Indians, and the company aims to make these solutions accessible to customers.
LIC Appoints New CFO and CRO to Strengthen Risk Leadership
Life Insurance Corporation of India (LIC) has appointed Shatmanyu Shrivastava as Chief Financial Officer (CFO) and Varadarajan Muthuvenkataraman as Chief Risk Officer (CRO), strengthening its financial and enterprise risk management functions.
The appointments were approved by LIC’s Board of Directors, with both executives designated as Key Managerial Personnel.
Shrivastava, previously Executive Director (Finance & Accounts), has taken charge as CFO. He joined LIC in 1990 and brings more than three decades of experience across finance, regulatory compliance and enterprise functions. He had earlier served as Executive Director (Enterprise Risk Management) and CRO.
Muthuvenkataraman, who was Executive Director (Enterprise Risk Management), has been redesignated as Executive Director (Enterprise Risk Management) and CRO. He joined LIC in 1992 and has held several leadership roles across administration, marketing and strategic functions.
The leadership changes strengthen LIC’s focus on financial governance, regulatory compliance and enterprise risk management.
LIC Pays Rs. 12,207 Crore Dividend to Government
Life Insurance Corporation of India (LIC) has paid a dividend of Rs. 12,207.25 crore to the Central Government, representing its share of the final dividend approved at the insurer’s Annual General Meeting held on July 27, 2026.
LIC Chief Executive Officer and Managing Director R Doraiswamy presented the dividend cheque to Finance Minister Nirmala Sitharaman.
Shareholders approved a final dividend of Rs. 10 per equity share for the financial year ended March 31, 2026. The resolution received more than 99.99% approval through electronic voting.
The AGM also approved LIC’s financial statements for FY2025-26, appointment of auditors and other resolutions, including material related party transactions.
LIC reported a total asset base of Rs. 59.03 lakh crore as of March 31, 2026, and completed 70 years since incorporation during the year.
LIC Share Sale Ends with Partial Retail Participation
The government’s stake sale in Life Insurance Corporation of India (LIC) received strong institutional interest but witnessed weaker participation from retail investors, leaving the retail portion undersubscribed.
According to BSE data, retail investors placed bids for around 57.1 million shares against 82.2 million shares reserved for the category, resulting in subscription of about 69%.
The government increased the size of the offering to 6.5% of LIC’s equity from the initially planned 2.5% after strong demand from institutional investors. The transaction, valued at around $3.3 billion, became India’s largest secondary share sale through the stock exchange platform and the second-largest equity fundraising transaction.
LIC shares ended marginally higher after declining nearly 9% in the previous trading session.
LIC Chief Flags Impact of Global Uncertainty on Insurance Demand
Life Insurance Corporation of India (LIC) has cautioned that global economic and geopolitical uncertainties are affecting household savings behaviour and insurance demand, creating pressure on policy persistency and premium growth.
LIC Managing Director and Chief Executive Officer R Doraiswamy said uncertainty in the macroeconomic environment could affect policyholders’ ability to pay renewal premiums on time.
For the first quarter of FY27, LIC’s persistency ratio on a policy count basis stood at 66.5% for the 13th month and 48.7% for the 61st month. On a premium basis, the ratios were 75.3% and 61.1%, respectively.
Doraiswamy said the decline in long-term persistency was influenced by seasonal economic factors and tighter household savings conditions. LIC has initiated follow-up measures to revive policies and improve retention.
LIC’s total premium income increased 6.8% to Rs. 1,27,250 crore during the quarter, while annualised premium equivalent stood at Rs. 13,692 crore. The company indicated that new business growth reflected a cautious consumer environment.
LIC and EPFO Hold Nearly Rs. 16,500 Crore in Unclaimed Funds
Nearly Rs. 16,450 crore remains unclaimed with India’s two major retirement-related institutions, Life Insurance Corporation of India (LIC) and Employees’ Provident Fund Organisation (EPFO), according to information provided to Parliament.
EPFO accounts accounted for around Rs. 9,330 crore of the unclaimed amount as of March 2026. These include inoperative accounts where contributions have not been received for three years after retirement beyond the age of 55.
LIC held unclaimed funds of approximately Rs. 7,318.5 crore, including around Rs. 1,754 crore of income accumulated on such amounts.
The figures highlight the importance of improving awareness, digital tracking mechanisms and processes for helping beneficiaries claim their outstanding retirement and insurance-related amounts.
Insurers Expand AI Use Across Underwriting and Customer Services
Insurance companies are increasing adoption of artificial intelligence (AI) across underwriting, claims processing, fraud detection and customer engagement to improve efficiency and decision-making.
According to insurer annual reports, AI-based solutions are helping reduce turnaround times, automate processes and improve customer service capabilities.
ICICI Prudential Life Insurance has deployed AI, machine learning and deep learning across the customer lifecycle, including lead generation, underwriting, policy issuance and servicing. During FY26, the insurer used these technologies to improve cross-selling, advisor activation, onboarding, fraud detection, collections and claims processing.
The company reported that more than 96.8% of customer service interactions were completed through digital self-service channels during the year.
HDFC Life Insurance has developed an enterprise-wide generative AI platform and integrated AI into underwriting, claims, fraud detection and customer servicing.
The insurer uses AI tools for automated verification, underwriting support, fraud identification and faster claim investigations. AI-powered chatbots assist frontline teams with operational and underwriting queries, while digital sales assistants provide personalised product recommendations, real-time quotations and application tracking.
The increasing use of AI reflects the insurance sector’s focus on improving operational efficiency while strengthening risk assessment, customer experience and fraud control mechanisms.
BNP Paribas Cardif to Re-enter India Insurance Market Through Bancassurance
BNP Paribas Cardif is set to return to India’s life insurance sector through a bancassurance-led strategy by acquiring a 26% stake in IndiaFirst Life Insurance from private equity firm Warburg Pincus.
The transaction, subject to regulatory approvals, marks BNP Paribas Cardif’s re-entry into the Indian insurance market after its earlier association with SBI Life, where it supported the country’s first bancassurance-driven insurance model.
BNP Paribas Cardif aims to leverage its global bancassurance expertise along with the distribution networks of Bank of Baroda and Union Bank of India. Following the transaction, the ownership structure of IndiaFirst Life is expected to include Bank of Baroda with around 65%, BNP Paribas Cardif with 26% and Union Bank of India with approximately 9%.
Pauline Leclerc-Glorieux, CEO of BNP Paribas Cardif, said the partnership would support IndiaFirst Life’s next phase of growth by combining global insurance expertise with local banking relationships.
IndiaFirst Life was originally established with UK-based Legal & General as a partner. After Legal & General exited, Warburg Pincus acquired its stake, and BNP Paribas Cardif is now entering as a strategic investor.
Bajaj Life CEO Tarun Chugh Emerges as Highest Paid Life Insurer CEO in FY26
Bajaj Life Insurance Managing Director and Chief Executive Officer Tarun Chugh was the highest-paid CEO among India’s life insurers in FY26, according to company disclosures.
Chugh received total remuneration of Rs. 33.66 crore during the year, up 4% from Rs. 32.35 crore in FY25.
His compensation included fixed pay of Rs. 8.37 crore and variable pay of Rs. 21.50 crore, comprising cash incentives and non-cash components, including employee stock options.
The payout came during a strong year for Bajaj Life, with premium income increasing 21.1% to Rs. 32,896.9 crore.
The disclosures come as the Insurance Regulatory and Development Authority of India (IRDAI) strengthens oversight of executive compensation. Under revised norms, variable pay and incentives of key management personnel will be linked not only to business performance but also to factors such as regulatory compliance, customer experience, claims servicing and grievance redressal.
Kamlesh Rao of Aditya Birla Sun Life Insurance was the second-highest paid life insurer CEO, with remuneration of Rs. 10.45 crore in FY26.
Government Plans 6.5% LIC Stake Sale Through OFS
The government plans to sell up to 6.5% stake in Life Insurance Corporation of India (LIC) through an offer for sale (OFS), potentially raising more than Rs. 30,000 crore.
Department of Investment and Public Asset Management (DIPAM) Secretary Arunish Chawla said the government will initially sell 2.5% equity, with an additional 4% greenshoe option. The floor price has been fixed at Rs. 382 per share.
The government currently holds a 96.5% stake in LIC. If the full greenshoe option is exercised, its holding could decline to around 90%.
The stake sale is aimed at helping LIC achieve the Securities and Exchange Board of India’s minimum public shareholding requirement ahead of schedule. Under the relaxed roadmap, LIC must reach 10% public shareholding by May 2027 and 25% by 2032.
The transaction could increase the government’s disinvestment receipts from the current Rs. 21,201 crore to more than Rs. 50,000 crore.
