New surrender value norms: Life insurers likely to alter product mix

To push Non-par policy sales till Sep 30

The life insurance industry, which planned to increase its share of non-participating (non-par) products in the overall product mix, after its declining share in FY24, is likely to change its strategy to reduce the impact of the revised surrender value norms.

A change in surrender value norms is likely to dampen the growth of non-par products and boost product designing and innovation in the life insurance industry. 

Non-par product offers guaranteed benefits to a customer according to predetermined choices.

“The industry can reduce the impact of revised surrender value norms using multiple ways. As a