Ahmedabad, Sep 23: Gujarat has established itself as one of India’s states in life insurance adoption, according to the Insurance Information Bureau of India’s analysis of business data for FY2021–FY2025. The study highlights the growing contribution of women and customers aged 36 years and above, who are increasingly opting for higher-value life insurance coverage to meet evolving protection and financial planning needs.
Gujarat’s life insurance market is showing a clear shift towards higher-value engagement, with annual premium collections rising from ₹36,175 crore in FY2020–21 to ₹50,425 crore in FY2024–25, an increase of nearly 40%, even as policy volumes remained broadly stable. Over the same period, the state’s total sum assured rose from ₹8.45 lakh crore to ₹11.83 lakh crore, indicating a significant increase in the value of protection being secured by policyholders.
Women are playing an increasingly significant role in Gujarat's life insurance market, with their premium contribution growing faster than policy ownership over the last five years. At the same time, customers aged 36 years and above are contributing a significantly higher share of premiums, reflecting greater protection needs as financial responsibilities increase.
Together, these trends underline a maturing insurance market in Gujarat, where consumers are increasingly choosing higher-value life insurance solutions aligned with their evolving life stages and long-term financial goals.
Mr. Kamlesh Rao, Chairperson, Insurance Awareness Committee – Life (IAC-Life) said, '
“Gujarat’s progress evidences the increasing importance households and businesses are placing on financial security. As one of India’s most dynamic economic hubs, the state has shown how awareness campaigns and robust distribution strategies can translate into meaningful protection for millions of families. The increasing contribution of women is especially heartening as we have always believed that they have the potential to lead India’s economic ascendancy and social transformation.”
Key Highlights from Gujarat's Life Insurance Landscape (FY21-FY25)
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Customers aged 36 years and above contributed nearly half (49.4%) of Gujarat's Annualised Premium in FY2024-25, despite accounting for only 34.2% of policy volume, reflecting a clear preference for higher-value life insurance protection among consumers in more established life stages.
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Policyholders above 45 years recorded the strongest premium growth among all age cohorts, with AP increasing by 59.4% over the five-year period. They also contributed 22.8% of annualised premium despite representing only 11.7% of policies.
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Women strengthened their role in Gujarat's life insurance market, increasing their share of total policies from 23.7% to 25.2% and their share of annualised premium from 25.5% to 28.1% between FY2020-21 and FY2024-25.
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Premium growth among women outpaced that of men, with annualised premium contributed by female policyholders growing by 53.7% over the period, highlighting increasing financial participation and protection awareness among women.
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Unit Linked Insurance Plans emerged as a major premium contributor, accounting for 23.6% of annualised premium while representing only 6.0% of policy volume, underscoring strong demand for protection-cum-wealth-creation solutions. Over the five-year period, ULIP policy volumes grew by 11.7%, while premiums increased by 53.5%, highlighting growing consumer preference for solutions that combine life protection with long-term wealth creation.
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Term insurance witnessed strong growth in both adoption and premium value, with policy volumes increasing by 7.5% and annualised premium rising by 53.4% over FY2020-21 to FY2024-25, indicating increasing focus on pure protection products.
The IIB study was conducted extensively to cover various age, gender and occupational cohorts across all districts and states, nationwide. The study has analysed business numbers in terms of number of policies bought, annualised premium and sum assured. The IIB study emphasises that Indians, largely, are consistently opting for higher life cover in the stated time period. The state-specific data offers key insights into the patterns of buying and adoption of life insurance across regions.
As more individuals choose to protect themselves and their families, life insurance will continue to play a vital role in supporting household financial security and contributing to India’s overall economic well-being. IAC-Life is confident that the momentum will continue, with more individuals nationwide following Gujarat’s example in securing their future through adequate life insurance protection.
