ULIP Commission Payouts Surge 60% in FY25, Marking Sharpest Spike Since FY18 

Commission payouts in Unit Linked Insurance Plans recorded a sharp rise in FY25, marking the highest year on year increase since FY18, as per the Cafemutual report.  

As per the report, data released by the Insurance Regulatory and Development Authority of India shows strong growth in both commissions and premiums during the financial year. 

ULIP Commission Payouts Jump 60% in FY25 

ULIP commissions stood at ₹7,855.39 crore in FY25, compared to ₹4,895.81 crore in FY24. This reflects an increase of ₹2,959.58 crore or 60.45%. The last comparable surge was in FY18, when commissions rose by 67.69% from FY17 levels. 

Between FY18 and FY25, commission payouts showed fluctuations. After ₹2,568.17 crore in FY18, commissions moved to ₹2,883.23 crore in FY19 and declined to ₹2,577.87 crore in FY20. Growth resumed from FY22 onwards, reaching ₹3,250.17 crore in FY22 and ₹3,287.40 crore in FY23, before accelerating in FY24 and FY25. 

ULIP Premiums Rise 31% in FY25 

ULIP premiums increased from ₹1.21 lakh crore in FY24 to ₹1.59 lakh crore in FY25, registering a rise of 31.01%. In absolute terms, premiums grew by ₹37,667.79 crore. ULIPs accounted for 18% of the total ₹8.857 lakh crore collected by the life insurance industry in FY25. 

Historical data shows premiums at ₹64,850.90 crore in FY18, rising steadily to ₹1,00,326.69 crore in FY22. Growth moderated in FY23 at 4.61% before picking up again in FY24 and FY25. 

LIC Contribution to ULIP Growth 

Commission payouts from Life Insurance Corporation of India increased from ₹219 crore in FY24 to ₹417 crore in FY25. As per the report, LIC expanded its ULIP product range and distribution, contributing to higher premiums and commissions during the year. 

Read More: Best 10 Mutual Funds for Senior Citizens in February 2026 by 5-Year CAGR: ICICI Prudential Retirement Fund, HDFC Retirement Savings Fund Equity Plan and More! 

Conclusion 

FY25 recorded a 60.45% rise in ULIP commissions and a 31.01% increase in premiums. The data indicates strong activity in market linked insurance products during the year, with contributions from distribution expansion and higher premium collections. 

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