Private life insurers' APE growth rises 18 pc in June; Tier-II players outperform top four: Kotak
New Delhi, July 10
India's private life insurance sector maintained healthy growth momentum in June 2026, with overall annualised premium equivalent growth accelerating to 18 per cent year-on-year, driven by strong performance from Tier-II insurers, according to a report by Kotak Institutional Equities.
Industry-wide APE growth improved to 15 per cent in June from 11-12 per cent in May, the report stated.
Individual APE growth for private insurers rose to 14 per cent year-on-year in June from 12 per cent in May. For the first quarter of FY27, individual APE growth stood at 15 per cent.
Private sector group APE surged 74 per cent year-on-year during the month, supporting overall premium growth.
The top four private life insurers also witnessed a recovery, reporting 14 per cent year-on-year APE growth in June compared with around 5 per cent in May.
Tier-II insurers continued to outperform the top four players for the eighth consecutive month. Private insurers excluding the top four posted 23 per cent year-on-year APE growth in June, while the strongest growth among Tier-II players stood at 29 per cent.
For the first quarter of FY27, private insurers excluding the top four recorded around 23 per cent year-on-year APE growth, compared with around 14 per cent for the top four insurers.
Despite the strong premium growth, the report noted that growth in sum assured moderated to 11 per cent for the private sector, down from 60 per cent in April and the 27-53 per cent range seen during the second half of FY26.
"We expect the rally in sum assured/term business to continue and will track the SA growth trends with anxiety," the report said.
— ANI
Reader Comments
Interesting data from Kotak. The group APE surging 74% suggests corporate policies are driving a lot of this growth. As an expat working in India, I see both sides – the protection gap is real, but maybe people are finally understanding the value of insurance. The Tier-II players outperforming the big four is a nice disruption story. Let's see if this translates to better products for consumers.
Finally some good news for the insurance sector! But honestly, the 11% sum assured growth is concerning. I see many people around me buying policies for tax savings without thinking about actual coverage needs. The Tier-II insurers offering better returns might be attracting more customers, but we need a holistic approach. Also, the report mentions anxiety – regulators should step in to ensure term insurance remains affordable and accessible.
As someone who just bought a policy from a Tier-II insurer, I can vouch for the better service and lower premiums compared to the big names. The 29% growth among them is well-deserved. But the sum assured dip is a red flag – I hope the industry isn't sacrificing protection for premium growth. Good to see the Kotak report being transparent about this. 👍
The 74% group APE surge is massive – clearly corporate policies are driving numbers. But the individual APE at 14% is modest. Tier-II insurers outperforming for 8 months straight shows the big four need to innovate. One respectful criticism: the industry must focus on increasing average sum assured, not just policy count. Otherwise, we'll have a generation underinsured. Stability over hype, please.
A We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.