Indians buy bigger life covers, premiums jump 43%
Mumbai experienced a significant surge in life insurance premiums, with the average annual premium per in-force policy increasing by 43% from FY2021 to FY2025, as per IIB data analysis. Despite the policy count remaining stable around 343 million, the average annual premium per policy rose from Rs 15,567 to Rs 22,195 during this period.
The data also reveals a shift in the type of insurance policies being purchased, with a decline in the number of policies with low sum-assured amounts (Rs 2 lakh or less) and a rise in policies offering higher coverage. Policies with sum-assured amounts between Rs 2 lakh and Rs 5 lakh saw a 5.6% increase, while those with Rs 10 lakh to Rs 25 lakh increased by 2%.
The most notable growth was in policies with sum-assured amounts exceeding Rs 50 lakh, which rose by 68% to 7.4 million in FY2025. This trend highlights a growing recognition of the value of life insurance and a commitment to enhancing financial security for individuals and their families.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
