Insurance

The life insurance industry in India is poised for robust expansion, with rating agency ICRA projecting a 9% increase in new business premiums (NBP) for the upcoming fiscal year. This optimistic forecast reflects rising consumer awareness, innovative product offerings, and favorable demographic trends fueling insurance adoption. Analysts note that both private and public insurers are leveraging technology, digital distribution channels, and personalized policies to attract a broader customer base.

India is considering a transformative change in its air travel refund framework, exploring a proposal that would allow passengers to recover up to 80% of their airfare even when cancelling tickets at the last minute. The initiative involves embedding a low-cost insurance component directly into ticket prices, ensuring that travelers do not need to purchase add-on coverage. The plan, which could take shape in the coming months, aims to bring predictability, fairness and consumer protection to a sector long criticized for opaque refund rules and steep penalties.

Life Insurance Corporation of India (LIC) has urged the government to exempt life insurance products from the Goods and Services Tax (GST), arguing that such a move would allow insurers to claim Input Tax Credit (ITC) and ultimately reduce costs for policyholders. The proposal comes at a time when the insurance industry is navigating rising operational expenses, evolving regulatory frameworks, and increased demand for transparent, affordable financial protection.

Life Insurance Corporation of India (LIC) has initiated detailed due diligence before committing funds to Adani Group companies, reaffirming its prudent investment approach. The process involves thorough assessment of financial health, governance standards, regulatory compliance, and long-term risk factors. Analysts note that LIC’s cautious methodology reflects its responsibility as a major institutional investor managing public policy-linked funds.

ICICI Prudential Life Insurance Co. Ltd. posted an 18% year-on-year rise in net profit for the second quarter of FY2025–26, reaching Rs. 296 crore, supported by improved operating efficiencies and higher margins. While new business growth slowed marginally, the company sustained profitability through disciplined cost control and a favorable product mix. Its Value of New Business (VNB) rose 1% to Rs. 592 crore, and the VNB margin expanded to 24.4%.

The imposition of Goods and Services Tax (GST) on health insurance premiums has emerged as a pressing concern for both policyholders and industry stakeholders. With premiums already rising due to medical inflation and higher claim ratios, the additional 18% GST has further strained affordability for individuals and families. While the government views GST collections as a critical revenue stream, critics argue that taxing health protection discourages insurance penetration in a country where coverage remains relatively low.

Punjab National Bank (PNB) has signed a memorandum of understanding with the Central Reserve Police Force (CRPF) to provide a tailored package of insurance and financial benefits to serving and retired personnel. The initiative is aimed at strengthening social security for India’s largest paramilitary force, ensuring financial protection for members and their families. The pact covers a wide range of services, including accident and health insurance, concessional loans, and dedicated banking assistance.

In a decisive move underscoring the growing regulatory emphasis on data protection, the Insurance Regulatory and Development Authority of India (IRDAI) has levied a penalty of Rs. 3.39 crore on Star Health and Allied Insurance Company. The fine follows the insurer’s failure to adhere to cybersecurity compliance norms, including delayed reporting of a data breach and lapses in safeguarding policyholders' sensitive personal information.

Cholamandalam MS General Insurance, a joint venture between the Murugappa Group and Japan's Mitsui Sumitomo Insurance, has reported a strong financial performance for the first quarter of FY26. The company’s net profit surged 29% year-on-year to Rs. 126 crore, supported by improved underwriting practices, disciplined cost controls, and healthy investment income. Gross written premiums also rose substantially, reflecting continued momentum in motor and health insurance segments.

ICICI Prudential Life Insurance has reported a substantial 34% increase in net profit for the first quarter, reaching Rs. 302 crore, driven by resilient premium inflows and disciplined expense control. The insurer also posted a higher value of new business margin, underscoring its success in strengthening profitability through a balanced product mix.