Private life insurers maintained their heavy reliance on ULIPs in FY26, with the product category continuing to dominate their product mix despite softer equity markets affecting performance in Q4 FY26. According to investor presentations and analyst calls, ULIPs remained the dominant product category across major private insurers, while protection products continued to account for a relatively small share of annualised premium equivalent (APE). Despite the challenging market conditions, insurers indicated a sharper focus on protection amid rising demand and GST-led pricing benefits.
Speaking at a Federation of Indian Chambers of Commerce and Industry (Ficci) event on Wednesday, Ashwini Tewari, managing director (corporate banking and subsidiaries) at State Bank of India (SBI), emphasized the need for insurers to prioritize protection products over market-linked offerings. Tewari stated that insurers should always sell protection as their first task, but protection accounts for just 10 per cent of the industry share. He noted that he had often told SBI Life Insurance that selling ULIPs was 'not a good idea' from an insurer's perspective, adding that in his view, the first task of an insurance company should always be to sell protection.
At SBI Life, ULIPs accounted for 60 per cent of APE in FY26, down from 64 per cent a year earlier, while protection products contributed 9 per cent. Protection APE grew 10 per cent year-on-year, with individual protection APE rising 24 per cent. The insurer reported that pure protection recorded 122 per cent growth on an individual APE basis, while sum assured in the segment rose 62 per cent. SBI Life reiterated plans to reduce dependence on ULIPs and expand protection business, with the company noting that customers could gradually rebalance towards long-term savings and protection products.
At HDFC Life Insurance Company, ULIPs formed nearly 44 per cent of individual APE in FY26, up from 39 per cent last year. Retail protection business grew 43 per cent year-on-year, with protection share in individual APE rising to 7 per cent from 5 per cent. The insurer attributed protection growth to lower pricing post-GST exemption and a stronger product portfolio, noting that customers could gradually rebalance towards long-term savings and protection products. The company emphasized that GST reforms had emerged as a key tailwind for retail protection products, helping improve customer traction and awareness.
For ICICI Prudential Life Insurance, linked products remained the largest component of APE, though their share eased to 48 per cent from 49 per cent year-earlier. Protection mix increased 220 basis points year-on-year to 17.9 per cent. The insurer noted that GST reforms had emerged as a key tailwind for retail protection products, helping improve customer traction and awareness, with rising customer demand for life cover and GST-led pricing benefits supporting the protection segment. This strategic shift reflects the industry's broader focus on diversifying product offerings beyond traditional ULIPs.
