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Below the Views on Key Trends Witnessed by the Fintech & Life Insurance Industry in 2024 and Outlook for 2025 By Pankaj Gupta, MD and CEO of Pramerica Life Insurance

“The year 2024 has been a defining period for the life insurance industry, marked by a strong emphasis on customer centricity. Regulatory advancements have not only enhanced transparency and trust but have also created avenues for sustainable growth, making the industry more robust and resilient. The revised PPHI (Protection of Policyholders' Interests) guidelines and new surrender value regulations underscore the sector’s commitment to improving customer experience and fostering policyholder confidence.

 Product preferences also saw a notable shift, with Unit-Linked Insurance Plans (ULIPs) emerging as the top choice for policyholders. This was driven by robust equity markets and the growing appeal of wealth creation through insurance. Industry has witnessed rise in New Business Premium from ticket size INR100K & above from 40% in Q1FY24 to 45% in Q1FY25. The growth is largely driven by private insurers whose share of new business from ticket size above 100K has gone up from 55% in Q1FY24 to 60% in Q1FY25 as business mix moves more towards ULIPs, highlighting a rising inclination towards products that blend financial protection with investment benefits. Improved 13-month persistency metrics further reflect the industry’s focus on offering the right products and strengthening collection mechanisms.

At Pramerica Life Insurance, 2024 has been a year of meaningful strides, marked by our commitment to sustainable growth and excellence in serving our customers and stakeholders. We have made significant strides in expanding our reach, particularly in underserved segments, supported by our strong MFI business. This aligns with our commitment to championing the regulator’s vision of ‘Insurance for All by 2047’. Looking ahead, we see immense opportunities in addressing India’s underpenetrated pensions market, currently at just 3% of GDP. With the elderly population projected to grow 2.4 times by 2050, the demand for retirement-focused solutions is expected to rise steadily. Life insurers have a critical role in bridging this gap with innovative and tailored products.  As we continue to empower customers with transparent, accessible and innovative solutions, we remain steadfast in our focus on ULIPs as a key component of our product mix. Meanwhile , Bima Trinity is set to revolutionise the sector for customers and distributors alike. By leveraging these opportunities, Pramerica Life Insurance is well-positioned to enter into a new era of growth, supporting India’s journey towards comprehensive financial protection by 2047.”

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