Life insurance renewals continue to anchor long-term financial protection in India

MUMBAI, India, June 3, 2026 /PRNewswire/ -- Renewal premiums contributed 55.09% of the total premium underwritten by India's life insurance industry in FY2024-25, reflecting sustained policyholder commitment and the long-term nature of customer relationships, according to an analysis of the IRDAI Annual Report 2024-25 by the Insurance Awareness Committee – Life Insurance Council (IAC-LI).

The industry reported total premium income of ₹8.86 lakh crore during FY2024-25, registering a growth of 6.73%. The strong contribution from renewal premiums highlights how long-term life insurance products continue to support financial protection, disciplined savings and retirement planning across economic cycles.

Along with renewals, the report has also noted other encouraging aspects about the life insurance industry. The industry paid total benefits of ₹6.30 lakh crore during the year, equivalent to nearly 72% of net premium collected, underlining the sector's role in providing financial support to policyholders and beneficiaries. Individual death claim settlement ratio stood at 97.82% during FY2024-25, while group claims settlement ratio stood at 99.68%, reflecting continued focus on policyholder servicing and claims support.

Commenting on the trends, Mr. Kamlesh Rao, Chairperson, Insurance Awareness Committee – Life Insurance (IAC-Life), said, "Life insurance products are designed to address long-term financial needs that evolve across different life stages. The strong share of renewal premiums demonstrates sustained customer commitment towards financial protection, disciplined savings and retirement preparedness. It also reflects growing awareness about the importance of maintaining long-term financial protection and continuity."

ULIP funds under management increased from ₹7.61 lakh crore in FY2023-24 to ₹8.29 lakh crore in FY2024-25, accounting for 12.23% of total investments managed by life insurers.

"ULIPs continue to attract long-term investors seeking a combination of insurance protection and market-linked wealth creation opportunities. Their long-term structure supports disciplined investing aligned with evolving financial goals," Mr. Rao added.

Despite the positive figures, the Committee admits that the slight dip in life insurance penetration to 2.7% of the GDP remains a mountain to be scaled. It presents an opportunity to bring more households under organised financial protection.

According to the IAC-LI, recent regulatory reforms introduced by IRDAI have further strengthened transparency, disclosures, product suitability and policyholder protection frameworks across the sector.

"These measures are improving consumer confidence and strengthening long-term engagement with life insurance products. As financial needs become more complex, long-term insurance solutions will continue to play an important role in helping households balance protection, savings, retirement planning and wealth creation," Mr. Rao continued.

About Insurance Awareness Committee–Life Insurance: 

87% of India continues to grapple with a significant life insurance protection gap, which continues to increase, exceeding 90% amongst those aged 18–35. This growing vulnerability is a threat to families' financial security and aspirations. 

Addressing this challenge on a war footing is crucial to maintaining our society's socio-economic resilience and security. The Insurance Awareness Committee was formed under the aegis of the Life Insurance Council to take action on this issue. 

Formed in 2019, 24 Life Insurance firms have come together to contribute under the guidance of six CEOs nominated to lead the agenda. Further comprised of a cross-industry marketing team supported by creative/ media agencies, the Insurance Awareness Committee researches, plans, creates and deploys nationwide campaigns that drive awareness, understanding and consideration of life insurance products. 

For more information, please visit https://www.lifeinscouncil.org/

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