Of this, ₹2.33 lakh crore was paid out as withdrawals and surrenders, marking a 1.77% increase from the previous year.
Persistency ratios remained stable, indicating that policy exits are largely planned and aligned with lifecycle financial needs.
The report shows that payouts accounted for 71.92% of net premium income, while all life insurers maintained solvency ratios above the regulatory minimum of 1.50, ensuring compliance with IRDAI requirements.
Claim settlement ratios were reported to be near 100%, underlining the sector’s capacity to meet policy obligations.
Key trends identified
The average benefit payout reflects living benefits, such as funding children’s education, purchasing homes, or other personal financial goals.
Life insurers are managing liabilities through robust asset-liability frameworks and conservative mortality assumptions, maintaining regulatory solvency margins despite large benefit disbursements.
Policyholder behavior suggests a growing use of life insurance proceeds for planned financial objectives, beyond traditional protection.
The report notes that India’s life insurance industry continues to provide a financial cushion for households, even amid macroeconomic uncertainties, while remaining compliant with regulatory and solvency requirements.
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