HDFC Life, ICICI Prudential Life, Bajaj Life and SBI Life Witness Sharp 8 Crore Drop in Insured Lives

India's top 4 private life insurers: HDFC Life, ICICI Prudential Life, Bajaj Life and SBI Life – have faced a significant drop in the number of lives covered over the last 18 months, with their combined insured base reducing by over 8 crore, as per news report.  

This change marks a notable shift in the life insurance landscape, especially when contrasted with the growing coverage seen by public sector entity LIC during the same period. 

Sharp Decline in Lives Covered by Private Life Insurers 

According to data from IRDAI and company reports, total lives covered by the four private insurers dropped from 18.08 crore in FY24 to a run-rate of roughly 10.14 crore in H1 FY26.  

HDFC Life saw a decline from 6.6 crore in FY24 to an estimated 4.54 crore, ICICI Prudential from 5.52 crore to 1.84 crore, Bajaj Life from 2.17 crore to 1.38 crore, and SBI Life from 3.79 crore to 2.38 crore. This decrease reflects cuts in group protection coverage, which had been aggressively pursued earlier. 

Annual Data Reflects the Same Trend 

FY25 data supports the declining trend. HDFC Life’s covered lives reduced to 4.97 crore, ICICI Prudential to 4.13 crore, Bajaj Life to 1.72 crore, and SBI Life to 2.55 crore. The private sector shrinkage in insured base contrasts with LIC, which increased covered lives from 6.18 crore in FY24 to 6.39 crore in FY25. 

Read More: LIC, Niva Bupa, ICICI Lombard, SBI Life Share Price Rise After Lok Sabha Clears Insurance Amendment Bill! 

Claims Remain Elevated Despite Fall in Coverage 

Despite the reduction in lives covered, mortality claims at several private insurers have not decreased proportionally. ICICI Prudential paid 3.68 lakh claims in FY25, and HDFC Life also reported high mortality outgo, suggesting continued volatility in group risk business.  

Bajaj Life also saw elevated claims, though below peak pandemic levels. In contrast, SBI Life claims followed a more normalised pattern and LIC saw claims fall from 15.71 lakh in FY22 to 10.13 lakh in FY25. 

Conclusion 

Over the last 18 months, private life insurers have reduced coverage by over 8 crore, with high mortality claims persisting despite the drop in exposure. PSU insurer LIC, meanwhile, continues to grow its coverage base and sees stabilised claims, highlighting contrasting paths for private and public sector insurers. 

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