[CLSTR]
< Back to situations

Monitor this situation.

[SITUATION] · [ACTIVE] · [BUSINESS]

3 clusters · 9 sources · 22 days · First seen · Last updated

India life insurance coverage and growth trends

Overview

Data from the Insurance Information Bureau (IIB) indicates a shift in India’s life insurance market between FY2021 and FY2025 toward higher-value coverage. While low-value policies with a sum assured of ₹2 lakh or less still represent 53.6% of all in-force policies, their market share declined from 65.1% in FY2021.

In contrast, the number of policies with a sum assured exceeding ₹50 lakh grew by 68%, increasing from 4.4 million to 7.4 million. This segment generated an annual premium of ₹975 billion. Although the total number of in-force policies remained stable at approximately 343 million, the average annual premium per policy rose by approximately 43%, increasing from ₹15,567 in FY2021 to ₹22,195 by FY2025.

Financial experts suggest that while ₹50 lakh is a common benchmark, the sufficiency of such coverage depends on individual factors like income, lifestyle, and rising living costs.

Looking ahead, the Indian life insurance industry is projected to maintain growth momentum through FY27. According to Emkay Research, retail annualised premium equivalent (APE) is expected to grow by 11-12% during that period. Private life insurers are anticipated to lead this expansion with a projected retail APE rise of 13-14% in FY27, compared to an expected 7-8% growth for the Life Insurance Corporation of India (LIC). Recent August data showed a 14% year-on-year rise in industry retail APE, with SBI Life recording the fastest growth among major listed private players at 22%.

Entities

India · Insurance Information Bureau of India · Insurance Information Bureau · IRDAI · ICICI Prudential Life

Timeline

  1. 4 days ago

    [BUSINESS] 5 sources
    Indian life insurance industry projected to grow 11-12% by FY27

    The Indian life insurance industry is projected to grow 11-12% in FY27, with private insurers expected to lead growth at 13-14% compared to LIC's projected 7-8% increase.

  2. 22 days ago

    [BUSINESS] 2 sources
    India life insurance coverage trends show shift to higher sum assured

    India is seeing a shift toward higher life insurance coverage, with policies exceeding ₹50 lakh growing by 68% between FY2021 and FY2025.

  3. 26 days ago

    [BUSINESS] 2 sources
    India life insurance shows shift toward higher-value coverage

    India is seeing a rise in high-value life insurance policies, with ₹50 lakh+ covers growing by 68%, though policies under ₹2 lakh still account for over half of the market.

Sources

businessnewsweek.in · desitalkchicago.com · imnepal.com · indoremirror.in · m.businesstoday.in · newsable.asianetnews.com · newsbytesapp.com · thefutureofthings.com · timesnownews.com

This summary has been updated 1 time: see revision history