Private Insurers Shed 8 Crore Lives Amid Protection Product Woes, Reassess Strategy

• Top four private life insurers (HDFC Life, ICICI Prudential Life, Bajaj Life, SBI Life) saw over 8 crore lives covered decline in 18 months.
• Combined coverage fell from 18.08 crore in FY24 to an annualised 10.14 crore in H1 FY26.
• Decline is attributed to an aggressive pivot towards group protection products, which have thin margins and high claims volatility.
• Despite reduced coverage, mortality claims remain persistently high for most private insurers, indicating adverse mortality experience.
• Insurers are recalibrating strategies, shifting focus back to stable savings-oriented products; LIC shows growth and normalized claims.

Why It Matters: Private insurers' aggressive protection strategy led to massive coverage loss and high claims, forcing a product mix rethink.