India’s life insurance industry has reiterated the importance of evaluating insurance products through a long-term lens, emphasizing that the sector continues to provide substantial financial security despite occasional concerns such as mis-selling. The Insurance Awareness Committee–Life Insurance (IAC-Life) said life insurance remains a critical component of financial planning, offering protection, disciplined savings and income continuity for families. Industry leaders noted that judging insurance products based on short-term outcomes can lead to an incomplete assessment of their overall value proposition.
According to KamleshRao, Chairperson of IAC-Life, life insurance is designed to deliver benefits over time through financial protection and savings discipline. While acknowledging that instances of mis-selling exist and must be addressed, Rao said they represent a small part of an industry that serves millions of policyholders across the country.Market data underscores the sector’s significance. During FY2024-25, the life insurance industry paid out more than ₹6.3 lakh crore in claims, including death benefits, maturities, annuities and withdrawals. The committee also highlighted the unique “free-look period” available to policyholders, allowing them to review and return policies within a stipulated timeframe if they are not satisfied.
In Patna, insurers see Bihar as an emerging growth market driven by rising financial awareness, increasing household incomes and expanding access to financial services. Industry observers believe greater awareness campaigns could help address the protection gap among young earners and first-time insurance buyers in the state, supporting stronger long-term penetration. IAC-Life noted that India continues to face a significant life insurance protection gap, affecting 87% of the population and exceeding 90% among individuals aged 18-35. Formed in 2019 under the Life Insurance Council, the committee comprises 24 life insurance companies working to improve awareness and adoption of life insurance products nationwide.