With 27 licensed life insurers competing in the market, consumers have access to a wide range of products and pricing options.

GST Exemption Boosts Affordability

A major development for policyholders is the GST exemption on individual life insurance policies. The GST Council recommended exempting all individual life insurance policies, including term, ULIP and endowment plans, from GST.

The move is intended to make insurance more affordable and encourage wider coverage among individuals and families.

How Life Insurers Are Being Compared

The ranking of leading life insurance companies is based on four key parameters:

• Claim Settlement Ratio: The proportion of individual death claims settled by an insurer.

• Solvency Ratio: A measure of an insurer’s financial ability to meet its obligations. IRDAI requires insurers to maintain a minimum solvency ratio of 1.5.

• Complaints: Complaints per 10,000 claims provide an indication of customer service and post-sale experience.

• Scale: New business premiums and assets under management help assess an insurer’s market presence.

LIC Continues to Dominate

Life Insurance Corporation of India (LIC) remains the largest player in the market. The company recorded new business premiums of around ₹2.60 lakh crore in FY26, up from ₹2.30 lakh crore in the previous year, according to the figures cited.

Its scale continues to give LIC a substantial advantage, although private insurers are competing strongly through digital distribution, pricing and specialised products.

Private Insurers Strengthen Competition

Private-sector insurers have continued to make their presence felt, particularly in the term insurance segment.

Axis Max Life and HDFC Life were highlighted for their strong individual claim settlement ratios, at 99.78% and 99.72%, respectively, according to the figures provided. ICICI Prudential Life is also noted for its performance across key parameters.

Meanwhile, SBI Life combines a large private-sector premium base with an extensive distribution network. Its premium base reportedly grew 19.6% in FY26.

Aditya Birla Sun Life Maintains Strong Position

Aditya Birla Sun Life Insurance (ABSLI) ranks among the leading insurers highlighted in the report. It recorded an individual claim settlement ratio of 98.86% and maintained relatively low complaint levels.

The insurer has more than ₹1 lakh crore in assets under management, over 430 branches and more than 2.1 million customers. Its broad product portfolio makes it an option for consumers looking for different types of life insurance solutions.

Other Major Insurers

The top 10 list also includes Tata AIA Life Insurance, Bajaj Allianz Life, Kotak Mahindra Life Insurance and PNB MetLife.

Each insurer caters to different consumer requirements, ranging from long-duration coverage and competitive term plans to digital issuance and wellness-oriented benefits.

Look Beyond a Single Year

Financial advisers recommend that consumers should not select an insurer solely on the basis of one year’s claim settlement ratio.

Instead, buyers should examine an insurer’s five-year claim settlement track record, complaint levels and solvency position. Looking at multiple years can provide a broader picture of an insurer’s consistency and financial strength.

Consumers should also compare policy features, exclusions, premiums, benefits and the insurer’s service record before making a decision.

Consider Coverage and Affordability

Choosing an appropriate level of life insurance is equally important. Advisers commonly suggest evaluating coverage in relation to annual income, outstanding liabilities, family expenses, future education costs and other financial responsibilities.

The report notes a broad guideline of maintaining life insurance coverage equivalent to 10–20 times annual income, although the appropriate amount can vary depending on individual circumstances.

Making an Informed Choice

India’s life insurance market is becoming increasingly competitive, with public-sector and private insurers offering a diverse range of products.

The combination of strong industry growth, greater competition, improved disclosure requirements and the GST exemption on individual life insurance policies could make FY2026-27 an important period for insurance buyers.

However, consumers should compare insurers across claim settlement performance, solvency, complaints, product suitability and overall costs, rather than choosing a policy based solely on brand name or premium price.