News · BFSI
A research report projects private life insurers will achieve annualised premium equivalent growth of 13-18 per cent between FY26 and FY29, driven by protection, annuity and non-participating savings products.
✦ AI SUMMARY 30-second read
- Private life insurers forecast to post APE CAGR of 13-18 per cent between FY26 and FY29.
- Annuity and non-participating savings products are replacing ULIPs as primary growth drivers amid market volatility.
- Improved product mix and expanding value of new business margins underpinned healthy second-quarter performance.
Why it matters: Sustained shift toward stable-margin products could strengthen long-term profitability across India's private life insurance industry.
This summary was generated by AI. Editors may review and update it.
India's private life insurance sector is on course for strong growth over the next three years, with annualised premium equivalent expected to expand at a compound annual growth rate of 13-18 per cent between FY26 and FY29. The projection comes from a research report by Centrum Broking, which points to rising consumer interest in protection, annuity and non-participating savings products as the central force behind the outlook.
The report also highlights a healthy second-quarter performance across the industry, crediting an improved product composition and widening value of new business margins for the positive results.
What is driving growth
A clear strategic shift is under way among private insurers, who are reducing their dependence on unit-linked insurance plans in response to equity market volatility. In their place, insurers are expanding offerings in protection policies, non-participating savings plans and annuity products, all of which tend to deliver more stable margins.
Annuity products are emerging as a particularly significant growth driver. Rising public demand for guaranteed returns and dependable retirement solutions is making these products increasingly attractive to both insurers and policyholders.
Challenges the sector faces
Despite the upbeat projections, the industry is not without operational pressures. Elevated expense ratios and uneven persistency trends remain areas of concern for insurers.
The sector is also adjusting to evolving regulatory frameworks. The report suggests that insurers remain confident in their ability to adapt, and that these adaptations are expected to support continued stability alongside growth.
What it means for India
The projected expansion in life insurance coverage, particularly through protection and annuity products, points to a maturing market where consumers are increasingly seeking long-term financial security rather than purely investment-linked returns.
If profitability improvements are sustained alongside volume growth, the sector could become a more resilient contributor to India's broader financial services landscape. Elets will update this story as further data and regulatory developments emerge.
