India’s Insurance Sector Performance Analyzed

Key Points

• Strong growth driven by GST benefits and festive season.
• Private insurers leading growth, capturing 75% of premium revenue.
• Retail APE (Assets Under Policy) is predicted to increase by 9-10% in FY26.
• Max Financial Services is a preferred pick among insurers.
• Private insurers are expected to grow faster than public sector insurers.
• Overall industry growth is expected to continue due to ongoing tailwinds.

India’s insurance industry is doing very well! In November 2025, insurance sales jumped 27 percent, which is a big increase. This is good news for everyone involved in the industry.

Several factors helped fuel this growth. First, a new tax rule (called GST) gave people discounts on insurance, making it more affordable. Second, November is a popular month for buying insurance because of the holidays. Finally, last year’s changes to how people cancel their insurance policies (called ‘surrender regulations’) are now normalizing, meaning things are returning to a more normal level.

Motilal Oswal Financial Services (MOFSL), a company that analyzes investments, believes this growth will continue. They think people will keep buying insurance because of the tax breaks and because more and more companies are selling insurance products across the country. Emkay Institutional Equities also predicts strong growth.

One company in particular, Max Financial Services (the parent company of Max Life Insurance), is getting a lot of attention. Brokers believe this company is a smart choice to invest in. Nearly all insurance companies reported increases, with sales up 23% overall.

Private insurance companies, like Max Life, HDFC Life, and Bajaj Life, are growing much faster than the government-owned companies (like LIC). In fact, private insurers now account for 75% of all insurance sales! This shows a clear shift in the market.

Motilal Oswal also predicts that this trend will continue. They believe the insurance industry will keep growing because of the tax breaks and because more companies are offering their products to a wider range of people.

Experts at Emkay Institutional Equities expect retail APE, a measure of how much money insurance companies have managed, to grow by 9-10% in the year 2026. They anticipate that private insurers will grow at 11-12% while LIC will grow at 4-5%.

“Strong growth driven by GST benefits and festive season.” – Key Point Summary.