Demand for life insurance to remain strong in FY27, says Keki Mistry

Chairman Keki Mistry says favourable demographics, rising financial awareness and regulatory reforms will support long-term growth in India's life insurance sector

India’s favourable demographics, increasing awareness and need for long-term financial planning is expected to support demand for life insurance solutions in 2026-27 (FY27), HDFC Life Insurance Chairman Keki Mistry said in the company’s annual report. 

 

FY26 ended amidst persistent global uncertainty, heightened geopolitical tensions in West Asia, and episodes of financial market volatility, but India demonstrated relative economic resilience, supported by steady domestic demand, public investment, and ongoing structural reforms, the report added. It further said that India continues to remain amongst the fastest-growing major economies.

 

“As per RBI (Reserve Bank of India), real GDP (gross domestic product) in FY27 is expected to grow at 6.6 per cent. Further escalation of the conflict, its continuation over a wider geographical spread and uncertainty regarding the damage to the energy infrastructure, pose downside risks to the domestic growth outlook. However, favourable demographics, increasing awareness and need for long-term financial planning is expected to support sustained demand for life insurance solutions,” Mistry said.

   

In FY26, Indian life insurance received a regulatory push with removal of goods and services tax (GST) on retail life insurance products, improving product affordability. The adoption of International Financial Reporting Standards (IFRS), which became effective from April 2026 onwards, represents an important step in aligning the industry’s reporting with global standards. “These measures will further strengthen the life insurance sector and are constructive for long term penetration and trust,” Mistry said.

 

During the year, HDFC Life remained focused on disciplined growth, while maintaining a prudent approach to risk management and capital allocation. The insurer also continues to strengthen its diversified distribution franchise across proprietary, partnership and digital channels and invest in product innovation and customer-centric solution design across protection, savings, retirement and wellness products.

 

The insurer recorded 12 per cent year-on-year (Y-o-Y) growth in total reported premium (including renewal premium) and reinforced its position among the top three life insurance companies with a new business market share of 10.8 per cent, the report added. Net profit stood at ₹1,910 crore, assets under management (AUM) was ₹3.75 trillion and embedded value was ₹62,139 crore as of March 31, 2026.

 

“Looking ahead, I remain optimistic about the future of the Indian life insurance industry. The regulatory landscape is evolving rapidly, and customers are becoming more discerning and informed. We are well positioned to navigate change, adapt responsibly, and deliver sustainable value to policyholders, shareholders, partners, and society at large,” Mistry said.

 

In FY26, over 70 per cent of customers acquired were first-time buyers of HDFC Life policies, and over 46 million lives were insured across individual and group segments. Retail sum assured grew by 28 per cent Y-o-Y.

 

In its annual report, on the threat of new entrants, HDFC Life said it will continue to strengthen its market position through diversified product portfolio, strong distribution network and continued investments in digital capabilities and data analytics. 

 

It added that it is aiming to enhance its unit linked insurance plan (ULIP) and retirement offerings. HDFC Life will also focus on advisory-led selling to reinforce protection-led financial planning, the report said.

 

The insurer added that it remains watchful of evolving macro dynamics, particularly their impact on household savings behaviour and demand for long-term financial products. “The medium to long-term outlook remains supported by structural drivers including low insurance penetration, favourable demographics and increasing financialisation of savings,” the report said.