Insurance companies are increasingly leveraging the wide distribution networks of banks and microfinance lenders to offer insurance solutions in underpenetrated Tier 2 and Tier 3 cities, HDFC Life Insurance Chairman Keki Mistry said at the company’s 25th annual general meeting on July 16.
Insurance sector
India continues to be largely under-insured, with life insurance penetration at just 2.8%, Mistry said, adding that the country also has the highest protection gap in Asia at 91%, signalling a significant opportunity for expansion.
Quoting a Swiss Re report, Mistry said India is set to be the fastest-growing insurance market among G20 nations, with an average annual growth rate of 7.3% between 2025 and 2029. “This optimistic outlook is driven by strong economic growth, rising disposable incomes, a young population, increasing risk awareness, expanding digital penetration, and supportive regulatory developments,” he said.
Insurance Business
In FY25, HDFC Life recorded its highest-ever market share of 11.1% in individual weighted received premium, retaining its position among the top three private insurers.
As of March 2025, the company’s assets under management stood at ₹3.36 lakh crore, with an Embedded Value of ₹55,423 crore. The solvency ratio was at 194%. The new business margin for the year stood at 25.6%, resulting in a Value of New Business (VNB) of ₹3,962 crore.
“Despite challenges such as increased surrender values and an adverse product mix, our new business margins demonstrated resilience, declining by only 70 basis points, thanks to proactive mitigations,” he said.
HDFC Life had a customer base of over 5 crore lives. The average age of its customers was around 36 years, with 75% being first-time policyholders.