The insurer identified five key trends that could shape the industry, including product innovation, wider access, AI adoption, changing savings behaviour and greater focus on transparency.
Industry growth remains steady amid reforms
The life insurance industry recorded a strong performance in FY26, with new business premiums crossing ₹4 lakh crore for the first time to reach ₹4.59 lakh crore, a 15.7% year-on-year rise. Individual Annualised Premium Equivalent (APE) grew 10% to ₹1.33 lakh crore.
Subhrajit Mukhopadhyay, Deputy CEO and Executive Director, Edelweiss Life Insurance, said measures such as the removal of GST on life insurance premiums, higher FDI limits and the launch of IRDAI’s Bima Sugam platform could support industry expansion.
With low insurance penetration and rising digital adoption, he expects the sector to grow at 10-12% over the medium term.
Product innovation and AI adoption gain focus
Insurers are expected to focus on products that address changing customer needs while expanding distribution in semi-urban and rural markets, Mukhopadhyay said.
He expects protection and savings products to remain key segments. AI is also likely to see wider use in claims processing, underwriting and policy servicing as insurers look to improve efficiency and customer experience.
Customers shift towards financial certainty
Mukhopadhyay said inflation, market volatility and healthcare concerns have increased demand for financial stability.
Customers are showing greater interest in guaranteed income products, long-term savings solutions and retirement planning, he said.
He added that insurers are also moving beyond traditional risk protection, with greater focus on wellness services, health tracking and preventive engagement.
Short-term focus impacts long-term planning
Mukhopadhyay said many customers continue to prioritise short-term expenses over long-term goals such as retirement and healthcare planning.
He referred to this as a “time horizon gap”, where people plan for the next few years despite having financial goals that may span decades.
He said greater focus on disciplined savings will be important as customers balance immediate needs with future financial security.
Trust and transparency remain key priorities
Mukhopadhyay said insurers are focusing on simpler digital processes, need-based selling and clearer communication to improve customer confidence.
Claims settlement remains a major trust factor, he said, adding that improvements in regulations, customer disclosures and internal processes have supported better claim handling.
Data analytics and AI are expected to further transform the insurance lifecycle, from product discovery and underwriting to claims and customer servicing, Mukhopadhyay said.
