Life insurers adjust term premiums ahead of business end of financial year

While some companies are increasing rates, others are slashing them, and still others have made no change; GST changes on premium taxation may change outlook

Ahead of the business end of the financial year (FY25), a mixed trend is emerging in the life insurance sector, with some major players reducing premiums on their term products to drive sales, while others are increasing them to protect margins and remain competitive in the market, said industry insiders. 

HDFC Life Insurance – the second largest life insurer in the country – has increased their term life insurance premiums by about 5 per cent for Rs 50 lakhs and above, as per distributors. Term business accounts for almost 6 per cent of the insurer’s business as of the April-September