The strategic pivot away from market-linked plans has notably boosted value of new business margins across both private insurers and state-run Life Insurance Corporation of India. Private players also experienced healthy gross premium growth ranging from 8% to 16% year-on-year in the second quarter of FY27. However, the sector is grappling with near-term challenges, as several firms saw rising expense ratios from heavier operating costs alongside widespread drops in 13-month persistency rates.
Key points
Insurers are intentionally pivoting away from volatile market-linked products to capture…: Insurers are intentionally pivoting away from volatile market-linked products to capture more stable profit margins through protection and annuity policies.
Rising operating costs and weakening 13-month persistency rates represent notable headwin…: Rising operating costs and weakening 13-month persistency rates represent notable headwinds that underwriters must manage despite revenue gains.
Expanding distribution networks and securing clarity around upcoming regulatory norms wil…: Expanding distribution networks and securing clarity around upcoming regulatory norms will serve as crucial catalysts for long-term sector performance.
Sources checked by our analysis pipeline: 1
India's life insurance sector is expected to maintain healthy growth over the next three years, supported by rising demand for protection products, stronger traction in annuity and non-participating savings policies, and improving profitability, according to a research report by Centrum Broking.
The brokerage expects private life insurers to record an annualised premium equivalent (APE) compound annual growth rate (CAGR) of 13-18% between FY26 and FY29, reflecting continued demand for insurance products and a gradual improvement in business mix.
“We continue to remain optimistic on life insurance industry with a healthy Q2,” the report said, identifying a shift towards more profitable products and expanding value of new business (VNB) margins as key factors supporting the outlook.
Protection and annuity products drive growth
During the second quarter of FY27, APE growth among insurers ranged from 7% to 16%, while gross premium growth for private insurers stood at 8-16% year-on-year, according to the report.
New business premium growth also remained encouraging, with insurers reporting increased traction in both individual and group insurance segments.
One of the key trends highlighted by the brokerage was…
A fourth-year engineering student in Mumbai has gained widespread praise after sharing a transparent breakdown of her personal finances online. After relying on her father for the first two years of university, she chose to fund her own degree once she began earning. Her major expenditures and consistent savings demonstrate rare early independence alongside disciplined personal budgeting.
Domestic equities pulled back after higher-than-expected retail inflation stoked fears of policy tightening by the central bank. To navigate this volatility, Motilal Oswal Financial Services analyst Chandan Taparia has highlighted specific trading opportunities with defined risk levels. These selections focus on exchange platforms and telecom resilience as broader technical indicators face consolidation.
The Allahabad High Court established that contractual rights to repossess property cannot justify deploying private recovery agents to forcefully seize vehicles from defaulting borrowers. Lenders must instead seek relief through civil courts or arbitrators rather than usurping coercive state powers. The decision strictly curbs strong-arm debt collection tactics across the lending industry to safeguard borrowers on public roads.