Life Insurance – Sector Report – Rebalancing & aiming for growth
Published on 10 Sep 2025
Low life insurance penetration and density in India indicate a significant scope for growth over a multi-year horizon. Outlook for the industry remains positive driven by strong demand for NPAR, protection and annuity products. Private players with a strong set of new launches, diversified product mix and well-entrenched distribution network are best positioned to capture the opportunity. While valuations have seen a de-rating due to an extended period of regulatory overhang and we expect FY26 margins to absorb the impact of GST exemption, life insurers continue to be resilient as demand remains intact. Further, GST exemption is likely to drive higher penetration, improve persistency and accelerate growth over the long- term. HDFCLIFE and MAXF are our top picks in the space.
