LIFE

INDIA’S LIFE INSURANCE sector is undergoing a shift, driven by better financial awareness, digital adoption and a deeper understanding of long-term security. At the centre of this transition is Vibha Padalkar, MD and CEO, HDFC Life Insurance Co. Ltd, who says the industry’s real strength lies in discipline and trust — qualities that shape how customers plan for their future.

“Life insurance products are designed for the long term. They help build a disciplined approach when it comes to planning for long-term financial goals. For HDFC Life, H1FY26 persistency ratios for 13- and 61 months are at 86% and 62%, respectively.”

Padalkar explains that persistency, often seen as a sign of customer confidence, has risen across product categories. “These trends reflect the underlying product and tier mix. Improvement in persistency is driven by greater financial literacy and awareness of long-term planning. Proactive communication, simplified digital payment options, and personalised reminders have helped improve persistency.”

But, while digital tools redefine user experience, life insurance remains an emotional purchase tied to goals and financial protection. Hence, there needs to be a balance between automation and human touch.

Padalkar says at HDFC Life, the company uses technology for both efficiency and smoother service delivery. “We continue to simplify journeys across channels, offer personalised advisory, and leverage data ecosystems for faster decision-making and enabling policy servicing through automation.”

But then, certain touch points demand empathy, which machines cannot replace. “Sensitive touch points such as claims, servicing and grievance resolutions are handled by trained professionals who provide reassurance and guidance. This hybrid model delivers convenience without compromising care,” Padalkar says.

The shift in customer profiles is reshaping underwriting norms, claims Vivek Jain, chief business officer, life insurance, Policybazaar.com. “As insurance reaches smaller cities and rural areas, the opportunity is immense, but so is the responsibility. The profile of the insurance seeker is shifting rapidly.”

Padalkar agrees that education, trust-building and thoughtful product design will decide the future of the sector. “As we continue our journey towards the collective goal of ‘Insurance for all by 2047’, our focus remains clear — combine technology and human connection, provide long-term financial protection and sustain customer trust.”

TERM

FOR MOST INDIANS, term insurance is distant, misunderstood, and even unnecessary. Yet for Venky Iyer, the man leading Tata AIA Life Insurance, it sits at the heart of financial security. His work is shaped by a simple belief: life insurance should protect families when they are most vulnerable, not confuse them with complexity or false promises.

Term insurance, at its core, is straightforward. It pays a fixed sum to a family if the policyholder dies during the policy term. There are no savings, returns, or bonuses. The right term plan is one that matches a person’s income, debts and family responsibilities, while remaining easy to understand and affordable over the long term.

As the MD and CEO of Tata AIA Life Insurance Co. Ltd, Iyer has always been vocal about developing products that extend beyond just providing a payout. Discussing the company’s flagship offering, he says, “Sampoorna Raksha Promise [plan] is designed to offer comprehensive protection by combining term insurance along with cover for critical illnesses.”

Protection today cannot stop at life cover alone, says Iyer. Hence, Sampoorna Raksha Promise plan also includes health and wellness support through Tata AIA’s Health Buddy and Vitality platforms.

The approach highlights the challenge facing the insurance industry in India: low penetration. Despite having one of the world’s largest populations, adoption of term insurance remains limited. Many people still see insurance as an investment, rather than a safety net.

Iyer believes insurers must take responsibility for changing this mindset. Products need to be simpler, communication clearer, and pricing more transparent, he says.

However, insurers alone cannot ensure smooth outcomes. Consumers also play a crucial role, especially when it comes to claims. “One should make honest and complete disclosures… details such as pre-existing health conditions, lifestyle habits and existing policies must be declared clearly,” says Jain of Policybazaar.com.

For Iyer, the future of term insurance lies in trust, simplicity, and relevance. As awareness grows and products become more aligned with real-life needs, term insurance may finally shift from being an ignored purchase to an essential one.

HEALTH

IN THE CROWDED world of health insurance, few leaders manage to combine scale with sincerity. Tapan Singhel, MD and CEO, Bajaj General Insurance Co. Ltd, has built his reputation on doing exactly that. The insurer extended health cover to over 20 million customers in FY25, and recorded a health claim settlement ratio of 97.2%.

For Singhel, however, the number only tells part of the story. “At Bajaj General Insurance, the real measure of our work is how we stand by you and your loved ones during a medical emergency,” he says.

He explains that in moments of crises, families rarely worry about policy wording. They care about timely treatment and financial security, and the insurer’s role is to remove barriers, the main reason why, he says, Bajaj General Insurance continues to push for stronger cashless networks, closer partnerships with hospitals and more transparent billing.

Singhel stresses that India’s healthcare needs vary across geographies, income groups and age brackets. The company’s health portfolio, now running into more than 100 products, reflects this diversity. “We bring state-specific health insurance to Tier II and III regions, so that coverage is aligned with local healthcare realities.”

Plans include women-centred ones such as HERizon Care, which addresses often-ignored needs such as surrogacy support and holistic wellness, and the Respect Senior Care Rider, which helps older people access dependable services. Everyday care has also become a core focus area, with OPD benefits covering doctor visits, tests and basic treatments that most families rely on.

The industry is also changing fast. Zero-waiting-period plans have become a popular choice for customers seeking immediate coverage. But as Naval Goel, CEO of PolicyX.com, points out, the trend comes with challenges. Such products carry a higher risk, especially when customers with existing health issues seek instant claims. According to Goel, sustainability will depend on sharper digital checks — health data, e-medical records, past claims analysis, and fraud-monitoring tools — backed by careful premium design and early year limits.

For Bajaj General Insurance, expanding access remains a top priority. “Our strong distribution network of agents, partners, banks and teams on the ground allows us to reach customers across the country,” says Singhel. “We will continue to innovate and simplify our products and services so that health insurance becomes a natural and meaningful part of everyday life,” he adds.

MOTOR

BAJAJ GENERAL Insurance’s rise to the top of the motor insurance category is the result of a two-decade push to simplify protection for Indians every day, a philosophy that MD and CEO Tapan Singhel says has shaped the company’s identity as much as its products. In an industry often criticised for complexity, Singhel has positioned Bajaj General Insurance as a brand that filters decisions through a single question: what is the customer worried about at the moment when something goes wrong?

Bajaj has been an early mover in transforming the claims journey. With MOTs and AI-enabled assessment, claims today are settled with greater speed and clarity, cutting down the stress customers face during uncertain events. A MOT (Ministry of Transport) test is an annual check-up for vehicles to ensure they are legally roadworthy, safe, and meet emissions specifications.

“At Bajaj General Insurance, our endeavour is not just to create insurance products, but to build simple solutions around apprehensions faced by customers. When someone buys a motor insurance, they are not thinking of a policy document, they are thinking of their family, their vehicle and what will happen if something goes wrong,” says Singhel.

The company, adds Singhel, approaches product-building by placing customer anxieties at the centre, rather than focussing on technical features first. Every possible concern a person encounters on the road — whether a midnight breakdown, a minor accident or the anxiety of being stranded — plays a role in shaping the company’s offerings. “Over the last 25 years, we have created around 250 motor insurance solutions that support different customer segments. From 24x7 Roadside Assistance, including dedicated support for women drivers, to V Pay — the all-in-one add-on that takes care of everything, from engine protection to everyday scratches, the idea is simple: when something happens, you should feel that your insurer is standing right next to you.”

The company’s motor insurance solutions continue to evolve in line with India’s changing mobility habits, including the rise of electric vehicles. Eco Assure Repair Protection supports greener choices, while the company’s EV for All cover offers comprehensive protection tailored for electric vehicle users.

Goel of PolicyX.com says digital tools have already made the claims process faster, though further innovation is still possible. Insurers can reduce the settlement time further by integrating AI tools that accurately read damage photos, partnering with carmakers for real-time parts pricing, and using automated repair cost calculators that can approve claims within minutes. “Pre-approved partner garages with fixed rates and mobile repair units can speed up repairs even more. By combining simple digital tools with a managed repair network, insurers can deliver fast claim decisions while keeping costs and fraud in control,” says Goel.

“For us, being front-runners in the motor category is not about numbers or market share alone,” claims Singhel. “The real test is whether we can remove worries with empathy and settle claims at hyper-speed when people need us the most. If we can do that well, we know we are making a meaningful difference to citizens across India,” he adds.