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Life Insurers' Focus Shifts as Appetite for ULIPs Falls

Financial Express Kochi

|

July 29, 2025

Choppy markets boost demand for traditional plans

- NARAYANAN V

MAJOR LIFE INSURERS are gradually shifting focus away from Unit Linked Insurance Plans (ULIPs) towards higher-margin participating (par) and non-participating (non-par) products, as sustained market volatility continues to dampen investor appetite for market-linked offerings.

SBI Life Insurance, the country's largest private life insurer, saw the share of ULIPs in its annualised premium equivalent (APE) product mix fall to 57% in Q1FY26, down from 61% in the same period last year. Meanwhile, the share of value-accretive non-par products rose by 300 basis points year-on-year to 38% in the latest quarter.

APE is a standard industry metric used to measure new business sales. It is calculated as the sum of regular annual premiums and 10% of single premiums.

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