Page 16 - The Insurance Times September 2025

Private insurers request IRDAI to defer listing Currently, only a few insurers offer
limited coverage for infertility
roadmap till 2027 treatment, often with exclusions or
Several leading private life and general insurance companies have strict eligibility criteria. As fertility
approached the Insurance Regulatory and Development Authority of India clinics expand and demand for assisted
(IRDAI) seeking an extension until 2027 for submitting their plans to go reproductive technologies grows,
public. According to sources, insurers cited the upcoming implementation stakeholders believe there is potential
of IFRS 17 (Ind AS 117 in India) as a key reason for the delay. for tailored insurance products.
However, a robust regulatory
The new accounting standard, effective from April 1, 2026, will significantly
overhaul financial reporting for insurance contracts by redefining profit framework and customer-centric
design will be critical for growth.
recognition, liability valuation, and disclosure practices. These changes could
materially impact valuations and financial metrics, prompting insurers to Industry voices are calling for pilot
wait until the transition is complete before initiating public listings. programs, employer-linked fertility
benefits, and government support to
IRDAI had earlier mandated at least ten insurers to submit their listing boost this niche segment.
strategies by February-end. Industry stakeholders believe that aligning
listings with post-IFRS 17 financials would ensure better transparency and NRIs Increasingly Opt for
investor confidence. IRDAI did not respond to media queries regarding the
extension request. Term Insurance in India
Amid Rising Global Costs
regulatory cap would require IRDAI's improving to 62.8%. The annualised With rising living costs abroad and
special approval. If composite premium equivalent (APE) grew 9% to growing awareness of financial planning,
insurance reforms are implemented, Rs. 3,970 crore, and value of new a significant number of Non-Resident
LIC would be able to directly business (VNB) rose 12% to Rs. 1,090 Indians (NRIs) are turning to India for
underwrite health products. crore. VNB margins expanded 60 bps purchasing term insurance policies.
to 27.4%.
Until then, it remains open to investing Financial planners cite factors such as
in a health insurer while aligning with MD & CEO Amit Jhingran noted a India's affordable premium rates,
its long-term strategy to expand across strategic shift in product mix towards favorable regulatory environment, and
insurance verticals. The move supports protection and non-par guaranteed availability of high sum assured options
LIC's vision to increase insurance products. SBI Life retained its as key reasons behind this trend.
penetration and diversify its portfolio leadership with a 22.3% private market Indian insurers are also tailoring policies
amid growing healthcare demand. share in individual rated premiums.
to suit NRI needs, offering digital
Management expenses rose to Rs. onboarding, remote medicals, and
SBI Life Q1 profit up 14.4% 1,915.2 crore. Distribution strength flexible payment options. Experts note
on robust renewal was supported by both agency and that NRIs view term plans not only as
bancassurance channels, along with
premiums brokers and other banking partners. protection for their families in India but
SBI Life Insurance posted a 14.41% also as tools for wealth preservation and
year-on-year increase in net profit to India's fertility insurance estate planning. Moreover, with the
Rs. 594.37 crore for Q1FY26, driven by rupee's relative stability and India's
a 23.5% surge in renewal premium segment still at early stage improving insurance penetration,
insurers are positioning themselves to
collections. Total net premium income India's fertility insurance sector is still
rose 13.7% to Rs. 17,178.5 crore, with in its infancy despite rising demand for cater to this growing diaspora demand.
first-year premiums up 12.5% and In-Vitro Fertilisation (IVF) and other Financial advisors recommend
renewal premiums at Rs. 10,546.3 fertility treatments, which remain comparing features, understanding tax
crore. largely uncovered by standard health implications, and verifying residency
While single premium declined 4.1%, insurance. Experts point out that high clauses before purchase. The trend is
the insurer maintained strong treatment costs, low insurance expected to accelerate further as
persistency, with its 13th-month ratio awareness, and lack of product insurers strengthen their global
at 87.12% and 61st-month ratio innovation hinder wider adoption. outreach.

16 September 2025 The Insurance Times