Delhi, Sep 23: The National Capital Region, comprising Delhi, Gurugram and Gautam Buddha Nagar, have emerged as one of the standout performers in India’s life insurance landscape. The Insurance Information Bureau of India’s analysis of life insurance business data for FY2021–FY2025 has revealed some robust business numbers for the region.
Among the three markets, Gurugram recorded the strongest premium growth, with Annualised Premium increasing 1.81 times between FY2020-21 and FY2024-25, while Gautam Buddha Nagar witnessed a 1.68-fold increase. Policy volumes also expanded significantly, rising 18.5% in Gurugram and 22.4% in Gautam Buddha Nagar, respectively, over the five-year period. Delhi, meanwhile, stood out for higher protection levels, with an average sum assured per policy of ₹8.77 lakh in FY2024-25, nearly double the national average.
The study also points to evolving consumer preferences across NCR. While the 26-35 age group remains the largest contributor to policy volumes across Delhi, Gurugram and Gautam Buddha Nagar, older customers are contributing a disproportionately larger share of premium collections. In Delhi, customers aged 36 years and above contributed nearly half of total Annualised Premium, while the corresponding share exceeded 50% in both Gurugram and Gautam Buddha Nagar, indicating a growing preference for higher-value life insurance coverage as financial responsibilities increase.
Women are also emerging as an increasingly important customer segment across NCR. Their share of premium rose to 35.7% in Delhi, 33.1% in Gurugram and 35.2% in Gautam Buddha Nagar in FY2024-25, reflecting both rising participation and increasing investment in life insurance protection.
Product trends further underscore the market’s evolution. While endowment plans continue to account for the largest share of policy volumes, term insurance has emerged as the dominant premium contributor across all three markets, accounting for 47.3% of AP in Delhi, 65.3% in Gurugram and 62.0% in Gautam Buddha Nagar for FY2024-25. At the same time, ULIPs have registered strong premium growth, particularly in Gurugram, where AP increased by 128% over the five-year period, highlighting growing demand for solutions that combine protection with long-term wealth creation.
Mr. Kamlesh Rao, Chairperson, Insurance Awareness Committee – Life (IAC-Life), while commending the achievement, said,
“While Delhi has traditionally been known as India’s administrative nerve centre, Gurugram and Gautam Buddha Nagar have emerged as new-economy corridors with younger, wealthier and financially aware populations concentrated in technology, financial services and logistics. As IIB’s data testifies, life insurance is now resonating across residents of both traditional and emerging economic hubs.
What is particularly encouraging is that these are not isolated instances. We are witnessing similar trends across diverse geographies, from established metropolitan centres to rapidly developing urban clusters, demonstrating that life insurance adoption is no longer confined to a few markets. This growing acceptance reflects the success of sustained awareness efforts by insurers, distributors and industry stakeholders, as well as a broader shift in consumer understanding of financial protection. We are confident that this momentum will continue, with more Indians taking proactive steps to secure their families’ financial future through adequate life insurance coverage.”
Salient Highlights of the Study
-
NCR recorded strong life insurance growth across FY2021-25, with Gurugram’s Annualised Premium (AP) increasing 1.81x and Gautam Buddha Nagar’s AP growing 1.68x. Policy volumes rose 18.5% and 22.4%, respectively.
-
The 26-35 age cohort remains the largest contributor to policy volumes across NCR, while customers aged 36 years and above account for nearly half of premium collections in Delhi and more than half in Gurugram and Gautam Buddha Nagar.
-
Women are strengthening their role in NCR’s life insurance market, accounting for 35.7% of AP in Delhi, 33.1% in Gurugram and 35.2% in Gautam Buddha Nagar in FY2024-25.
-
Term insurance has emerged as the dominant premium-generating product, contributing 47.3% of AP in Delhi, 65.3% in Gurugram and 62.0% in Gautam Buddha Nagar for FY25, while delivering strong growth in both policy volumes and premiums.
-
ULIPs have witnessed significant momentum across NCR over the five-year period, with annualised premium collections growing 49.5% in Delhi, 128% in Gurugram and 56.1% in Gautam Buddha Nagar, reflecting increasing demand for protection-cum-wealth-creation solutions.
NCR’s improved business statistics are a direct outcome of consistent awareness interventions along with a robust distribution strategy. The region’s performance underscores the positive impact of sustained awareness initiatives and the collective efforts of insurers, distributors and other stakeholders. It has encouraged individuals and families to adopt life insurance as an essential financial protection tool. IAC-Life is confident that their sustained initiatives can stoke a stronger understanding of life insurance’s long-term benefits and result in more regions replicating NCR’s success.
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, annualized 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.