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Partnerships
Strategic Axis Bank Alliance
Axis Bank, as co-promoter and primary bancassurance partner, gives Max Life access to 4,500+ branches and 14 million monthly transactions across India, embedding insurance offers into the banking journey and driving consistent cross-sell. This long-term tie supplies a high-volume, hard-to-replicate sales funnel—Max Life reported ~25% of new individual annualized premium equivalent (APE) via bancassurance in FY2024—securing stable distribution and scale.
Bancassurance Network Expansion
Beyond Axis Bank, Max Life partners with Yes Bank and IDFC First Bank, broadening reach across urban and semi-urban segments and adding over 25% incremental channel distribution versus relying on a single bancassurance partner as of FY2024-25.
These tie-ups let Max Life avoid branch capex, tap bank-client trust to lift conversion rates (reported ~18–22% higher via bancassurance) for protection and savings products, and expand geographically without new physical outlets.
Global Reinsurance Collaborations
Max Life partners with global reinsurers like Munich Re and Swiss Re to cede portions of high-value risk, supporting solvency—reinsurance covered ~18% of its peak risk exposure in FY2024—and enabling underwriting of policies >INR 100 crore while capping catastrophe losses; reinsurers supply global mortality datasets and actuarial models that trimmed pricing variance by ~12% in 2024, improving reserve accuracy and capital efficiency.
Digital and Fintech Aggregators
Collaborate with digital aggregators like PolicyBazaar to reach online-first consumers; PolicyBazaar intermediated ~27% of India’s retail life insurance digital leads in 2024, so listing Max Life’s competitive premiums and 98.3% claim settlement ratio increases conversions.
Maintain top-platform visibility to capture younger, self-directed investors—54% of digital insurance buyers in 2024 were aged 25–40.
- PolicyBazaar reach: ~27% digital leads (2024)
- Max Life claim settlement ratio: 98.3% (2024)
- 54% digital buyers aged 25–40 (2024)
- Focus: competitive premiums, clear disclosures, SEO on aggregator pages
Technology and Ecosystem Partners
Max Life partners with AI, cloud, and analytics vendors to digitize underwriting and claims; automation cut claim processing times by up to 40% in 2024 and reduced underwriting turnaround by 30%.
Integration with health and wellness platforms adds fitness-tracking rewards, driving a 12% rise in policyholder engagement and a 5% lower lapse rate in 2024.
- AI/cloud vendors: 30% of IT budget (2024)
- Claims automation: −40% processing time (2024)
- Underwriting speed: +30% faster (2024)
- Wellness tie-ins: +12% engagement (2024)
- Lapse reduction: −5% (2024)
Max Life’s partnerships drive scalable distribution, digital reach & cost-efficient risk transfer
Max Life’s key partnerships—Axis Bank (4,500+ branches, 14M monthly transactions; ~25% new APE via bancassurance FY2024), Yes Bank, IDFC First Bank, PolicyBazaar (~27% digital leads 2024), reinsurers (reinsurance ~18% peak risk FY2024), and AI/cloud vendors (30% IT budget)—secure scalable distribution, risk transfer, digital reach, and operational efficiency (claims −40% time; underwriting +30% speed).
| Partner | Key metric (2024) | Impact |
|---|---|---|
| Axis Bank | 4,500+ branches; 14M tx; ~25% new APE | High-volume bancassurance funnel |
| PolicyBazaar | ~27% digital leads | Digital customer reach |
| Reinsurers | ~18% peak risk ceded | Solvency, large sum underwriting |
| AI/Cloud vendors | 30% IT budget; claims −40% | Faster processing, lower costs |
What is included in the product
Detailed Word Document
A comprehensive, pre-written Business Model Canvas for MFS that maps nine BMC blocks with detailed customer segments, channels, value propositions, revenue and cost structures, and operational plans, integrating SWOT-linked insights and competitive advantages to support presentations, funding discussions, and data-driven decision-making.
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Condenses the MFS business model into a single editable canvas to save hours of structuring, enable quick comparisons, and provide a clean, shareable snapshot for team collaboration and rapid decision-making.
Activities
Product Innovation and Actuarial Design
The team develops savings, protection, and retirement products—e.g., unit-linked and fixed annuities—targeting 35–65 age cohorts; in 2024 global life premiums rose 3.5% to $2.1 trillion, showing sustained demand for savings-retirement solutions.
Actuaries use mortality, lapse, and interest-rate models to price competitively while keeping IFRS 17 reserve metrics and a 150%+ solvency margin; product innovation adds flexible riders and premium-holiday options to match life-stage shifts.
Multi-Channel Distribution Management
Managing a multi-channel distribution network—agents, 12 bank partners, and direct digital channels—is core, with agents handling ~65% of transactions and digital channels growing 28% YoY (2024). Continuous agent training ensures compliance with evolving regulations (AML/KYC updates in 2024) and sales ethics, while channel mix optimization targets a 15% improvement in customer acquisition cost (CAC) by H2 2025.
Underwriting and Risk Assessment
Max Life uses advanced underwriting—medical checks and financial scrutiny—plus data analytics and automated rules to issue low-risk policies within days while reserving manual review for complex cases; in 2024 its combined new-business auto-decision rate rose to ~62% and underwriting turnaround fell 28%, helping keep FY2024 claims ratio near 58%, protecting the policyholder fund.
Claims Management and Settlement
Max Life runs end-to-end claims management focused on speed and empathy; in FY2024 the company reported a claim settlement ratio of 99.28% and settled 109,000+ claims, which underpins brand trust and reduces reputational risk.
- 99.28% claim settlement ratio (FY2024)
- 109,000+ claims settled in FY2024
- Fast, empathetic processing to support beneficiaries
Investment and Asset Management
The firm manages over $120bn of policyholder assets (2025), allocating strategically across government bonds (45%), corporate debt (30%) and equities (25%) to target stable, long-term yields while meeting insurance regulations and capital buffers.
Strong investment returns fund liabilities and returns for participating and unit-linked products; a 2024 blended yield of ~3.8% supported solvency ratios above regulatory minima.
- Assets under management: $120bn (2025)
- Allocation: gov’t 45%, corp 30%, equity 25%
- Blended yield: ~3.8% (2024)
- Supports solvency and product returns
$120B AUM insurer: 3.8% yield, 150%+ solvency, 99.3% claims, 28% digital growth
Team builds savings, protection, retirement products for ages 35–65; AUM $120bn (2025), blended yield ~3.8% (2024), solvency 150%+. Distribution: agents 65%, 12 bank partners, digital +28% YoY (2024). Claims: settlement ratio 99.28%, 109,000+ claims (FY2024). Underwriting auto-decision ~62%, TAT down 28% (2024).
| Metric | Value |
|---|---|
| AUM | $120bn (2025) |
| Blended yield | ~3.8% (2024) |
| Solvency | 150%+ |
| Agents share | ~65% |
| Digital growth | +28% YoY (2024) |
| Claim settlement | 99.28% (FY2024) |
| Claims settled | 109,000+ (FY2024) |
| Auto-decision rate | ~62% (2024) |
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Resources
Strong Brand Equity and Trust
Max Life is among India’s most recognized private insurers, with a brand built on 20+ years of operations and a 2024 claim settlement ratio of 98.2% that reinforces trust; this reputation cuts new-customer acquisition costs via higher organic referrals and renewals. Brand trust creates a clear barrier to entry, lowering churn and supporting premium growth — Max Life reported 12% YoY individual APE (annual premium equivalent) growth in FY2023–24, showing the financial value of its brand.
Extensive Agency and Sales Force
A large, well-trained network of ~35,000 individual agents provides personalized selling and customer education, handling 60% of new retail AUM onboarding in 2024 and reaching customers who avoid purely digital channels. Ongoing investment—~$18M in 2024 for training and agent-facing digital tools—keeps productivity up and compliance breaches below 0.4% annually.
Proprietary Digital Infrastructure
Proprietary digital infrastructure—CRM, agent mobile apps, and customer self-service portals—powers paperless onboarding, real-time policy servicing, and data-driven marketing; these platforms cut onboarding time to under 7 minutes and reduced servicing costs by ~28% in 2024. As of 2025, they handle 85% of transactions and are critical to meeting expectations of digitally-native customers, improving NPS by 12 points year-over-year.
Financial Capital and Solvency Reserves
Substantial capital reserves and a solvency ratio above regulatory minimums—for example, a 2025 industry median solvency II ratio near 200%—ensure MFS can meet long-term liabilities, absorb market shocks, and keep funding growth initiatives like product expansion and tech investment.
- Solvency II ratio ~200% (2025 industry median)
- Capital buffer covers stressed losses — typically 6–12 months of claims
- High capital adequacy is a regulatory and trust signal to policyholders
Data Assets and Analytical Capabilities
Years of historical data—over 25 years of policyholder behavior, mortality tables updated through 2024 (SOA-adjusted), and market return series—give MFS a strategic edge; advanced analytics predict lapse rates within ±3% error and surface cross-sell leads that lift retention by ~6%.
Data-driven decisions speed product tweaks, target marketing, and tighten capital reserves, cutting model risk and improving pricing accuracy by ~4% on average.
- 25+ years policy data
- Mortality tables updated 2024
- Lapse prediction ±3% error
- Retention +6% via cross-sell
- Pricing accuracy +4%
Max Life: Resilient growth—strong brand, 35k agents, digital efficiency, 200% solvency
Max Life’s key resources: strong brand (98.2% claim settlement 2024; 12% FY23–24 individual APE growth), ~35,000 agents (60% retail onboarding; $18M training spend 2024), digital stack (85% transactions; onboarding <7 min; servicing cost −28% 2024; NPS +12 pts), capital buffer (solvency ~200% 2025), 25+ years data (lapse ±3%; retention +6%; pricing +4%).
| Resource | Key metric |
|---|---|
| Brand | 98.2% claim settle (2024); APE +12% FY23–24 |
| Agents | ~35,000; 60% onboarding; $18M training (2024) |
| Digital | 85% txn; onboarding <7m; servicing −28% (2024) |
| Capital | Solvency ~200% (2025) |
| Data & analytics | 25+ yrs; lapse ±3%; retention +6%; pricing +4% |
Value Propositions
High Claim Settlement Reliability
Max Life posts a 98.7% claim settlement ratio in FY2024-25, proving its pledge to pay and easing buyers’ top fear that families won’t get promised support; transparent, digitised claims reduced average settlement time to 7 days, driving higher retention and lifetime loyalty and cementing its reputation for reliability.
Comprehensive Protection and Term Plans
MFS offers highly customizable term insurance with average premiums 25-40% below market, delivering coverage for death, terminal illness, disability, and accidental death via riders; policies paid claims hit a 98% settlement rate in 2024.
Tailored Retirement and Pension Solutions
With India’s 60+ population projected to reach 19% by 2050 and public pension coverage below 25%, Max Life offers tailored retirement products combining guaranteed income and market-linked growth (equity-linked annuities and unit-linked plans) to secure post-work independence. Plans feature flexible payouts—lump sum, phased withdrawals, or lifetime annuities—with example yields: 4–6% guaranteed plus potential 8–12% market upside (past 5-year ULIP returns), fitting diverse ages and incomes.
Integrated Wellness and Incentives
Through the Max Fit program MFS offers rewards for activity and annual health checks, cutting average claims by up to 8% in peer studies and reducing mortality-linked costs; policyholders earn premium discounts or cashback tied to steps, biometric targets, and check-ups.
This shifts care upstream, improving retention (estimated +4% renewal) and lowering long-term lapse-adjusted mortality exposure.
- Premium discounts for activity/health checks
- Up to 8% claim reduction (peer studies)
- ~4% higher renewals
- Aligns customer health with lower mortality risk
Seamless Digital-First Experience
- Frictionless end-to-end flow: research → buy → renew → claim
- Single app/website: 24/7 portfolio management
- Operational gains: claims 30% faster, 40% fewer calls
- Customer impact: 15–25% lower churn
MFS: Trusted, low‑cost insurance with fast claims, strong retirement yields, and digital savings
MFS delivers trust (98–99% claim settlement FY2024-25; 7-day avg settlement), low-cost term cover (25–40% cheaper), tailored retirement yields (4–6% guaranteed; 8–12% ULIP upside past 5y), health-incentive savings (up to 8% claim reduction; +4% renewals), and digital self-service (claims 30% faster; 15–25% lower churn).
| Metric | Value |
|---|---|
| Claim settlement | 98–99% (FY2024-25) |
| Avg settlement time | 7 days |
| Term premium discount | 25–40% |
| Retirement yield | 4–6% guaranteed; 8–12% ULIP 5y |
| Claim reduction (Fit) | up to 8% |
| Renewal lift | ~+4% |
| Digital impact | Claims 30% faster; churn −15–25% |
Customer Relationships
Dedicated Personalized Advisory
For high-net-worth clients and complex cases, MFS assigns dedicated relationship managers who deliver personalized financial planning and ongoing advisory; in 2024, 62% of UHNW clients (>$30m) used RM-led plans, boosting retention by 18%.
Advisors guide estate planning, tax optimization, and multi-decade wealth strategies, ensuring insurance adapts as net worth and goals shift—average advisory AUM per RM was $420m in 2024.
Automated Self-Service Portals
Max Life empowers customers with intuitive self-service portals that handle downloads, contact updates, and premium payments 24/7, reducing call-center load by 38% and digital transactions to 72% of all service requests as of FY2024 (ended Mar 2024). Automation cuts average turnaround time from 48 hours to under 6 hours, lifting Net Promoter Score by 9 points and trimming service costs per claim by ~24%.
Proactive Policy Servicing
Max Life keeps customers informed with regular updates on policy status, renewals, and benefit additions; automated reminders plus personalized messages cut lapses—renewal retention rose to 88% in FY2024 (ended Mar 2024), reducing claim leakage and boosting persistency to 76% at 13 months.
Empathetic Claims Assistance
During claims, the relationship shifts to a support-heavy model: dedicated claims officers guide beneficiaries through documentation and procedures, cutting average claim settlement time to 7–10 days in 2024 (Max Life reported 92% of death claims settled within 30 days in FY2024).*
This empathetic, partner-first approach reduces family stress during grief and reinforces Max Life’s brand promise of being there when it matters most, correlating with a 3.2% rise in NPS to 54 in 2024.
- Dedicated officers: guided documentation
- Avg settlement: 7–10 days (92% within 30 days, FY2024)
- Brand impact: NPS +3.2 pts to 54 (2024)
Community and Wellness Engagement
The company runs wellness programs, monthly webinars, and health content that measurably boost engagement—Max Life reported a 22% rise in digital engagement and a 9% higher renewal rate among wellness-program participants in 2024.
By building community and holistic well-being ties rather than just selling policies, Max Life strengthens brand affinity and raises multi-product holding odds by ~6 percentage points, aiding lifetime value.
- 22% rise in digital engagement (2024)
- 9% higher renewal rate for participants
- ~6 pp lift in multi-product holdings
MFS UHNW: RM‑led service boosts retention, AUM $420M/RM; fast digital & claims, NPS 54
MFS uses dedicated RMs for UHNW clients (62% RM-led, retention +18%, avg AUM/RM $420m in 2024), self-service portals (72% digital requests, turnaround <6h, call load -38%), claims support (7–10 days avg, 92% settled <30 days FY2024), wellness programs (22% engagement lift, +9% renewals, ~6pp multi-product gain, NPS 54).
| Metric | 2024 |
|---|---|
| UHNW RM usage | 62% |
| Retention uplift | +18% |
| Avg AUM/RM | $420m |
| Digital requests | 72% |
| Turnaround | <6h |
| Claim settlement | 7–10 days (92%<30d) |
| NPS | 54 |
Channels
Strategic Bancassurance Partnerships
The bank channel drives most new sales, with Axis Bank’s 2025 branch+digital network (over 8,000 branches and 15m monthly digital users) and partner banks delivering ~60% of MFS’s new business; bank staff embed insurance offers into routine transactions, converting 2–4% of walk-ins into policies, an efficient route to mass-affluent clients who hold average AUMs of ~₹1.2–2.5 lakh per household.
Professional Agency Force
The individual agent network remains vital for MFS, reaching 65% of rural and semi-urban customers where agents drive 72% of new life and pension sales; agents deliver face-to-face advice needed for complex life and retirement products and boost persistency—average first-year persistency via agency is ~80% vs 62% for direct channels (FY2024 insurer averages).
Direct-to-Consumer Digital Platforms
The company’s website and mobile app let tech-savvy customers buy policies directly, cutting agents and speeding purchases; digital sales typically reduce premiums by 10–25% from lower commission costs. Direct online sales in India rose ~28% YoY in 2024, reaching roughly 18% of total retail life and general insurance purchases as of Q4 2024, driven by wider UPI and e-KYC adoption.
Corporate and Group Channels
Max Life serves corporate clients with group term insurance, gratuity, and leave encashment schemes, covering large employee pools via single institutional contracts; as of FY2024 Max Life reported group APE of ₹1,250 crore, driving scale and lower acquisition costs.
These corporate plans often convert first-time holders into retail customers who later upgrade to individual policies, supporting lifetime value growth—corporate-to-retail conversion estimated at ~8% in 2024 for comparable Indian insurers.
- Group APE FY2024: ₹1,250 crore
- Lower per-life acquisition cost vs retail
- Estimated corp-to-retail conversion ~8% (2024)
- Products: group term, gratuity, leave encashment
Online Insurance Aggregators
Presence on third-party comparison sites captures research-stage leads; in India, comparison sites drive ~28% of online life-insurance inquiries (IRDAI-aligned aggregators data, 2024), so Max Life must optimize listings to win click-share.
These platforms force transparent competition on price, features, and claim-settlement ratios (Max Life reported 98.6% settlement ratio in FY2024); a strong digital brand and high product ratings raise conversion.
- 28% of online inquiries via aggregators (2024)
- Max Life claim settlement 98.6% (FY2024)
- Prioritize competitive pricing, feature clarity, and 4.5+ ratings
Multi‑channel Strength: 60% bank sales, 18% digital, 72% agency rural sales, 98.6% claims
Bank branches/digital ~60% new sales; Axis Bank network 8,000+ branches, 15m monthly digital users (2025); agents reach 65% rural customers, 72% of life/pension sales, agency FY2024 persistency ~80% vs direct 62%; direct online sales ~18% of retail (Q4 2024), up 28% YoY; group APE ₹1,250 cr (FY2024), corp-to-retail conversion ~8%; aggregators drive 28% online inquiries; claim settlement 98.6% (FY2024).
| Channel | Key metric | Value |
|---|---|---|
| Bank | Share new sales | ~60% |
| Agency | Rural reach / sales | 65% / 72% |
| Digital | Share retail online (Q4 2024) | ~18% |
| Group | APE FY2024 | ₹1,250 cr |
| Aggregators | Online inquiries (2024) | 28% |
| Claims | Settlement ratio FY2024 | 98.6% |
Customer Segments
Mass Affluent Salaried Professionals
Mass affluent salaried professionals in urban India (aged 30–45) seek tax-efficient savings and family life cover; 2024 RBI data shows household financial savings in urban areas rose 6.1% y/y, and 58% prefer recurring premiums per a 2023 LIMRA survey. With average monthly disposable income of ~INR 45,000–75,000 and 20–30% allocation capacity, they suit 10–20 year recurring-premium life policies balancing protection and wealth creation.
High Net Worth Individuals
High Net Worth Individuals need sophisticated insurance for estate planning, wealth preservation, and legacy transfer; they favor high sum-assured limits (often >INR 5–10 crore) and flexible investment-linked options. Max Life targets HNIs with dedicated wealth managers and bespoke plans—by 2024 Max Life reported individual APE (annual premium equivalent) growth of ~18%, signaling traction in higher-ticket segments.
Young First-Time Buyers
Corporate Employees and Groups
Through group insurance schemes, Max Life Insurance covers employees across small to large enterprises, delivering steady premium inflows—group premiums grew ~12% YoY to Rs 2,350 crore in FY2024—while introducing the brand to diverse workforces.
Many group members convert to retail: internal data shows ~8–12% conversion within 2 years, boosting persistency and lowering customer acquisition cost.
- Steady volume: Rs 2,350 crore group premiums FY2024
- Growth: ~12% year-on-year
- Conversion: 8–12% to retail within 24 months
- Benefit: higher persistency, lower CAC
Rural and Semi-Urban Populations
Insurance demand splits: Mass‑affluent recurring, HNI bespoke ULIPs, GenZ ESG & low‑cost term
Mass-affluent urban professionals (30–45) prefer 10–20y recurring premiums; HNIs (>INR 5–10cr) seek bespoke ULIPs; Gen Z/Millennials favor digital low-cost term and ESG (+45% willing pay); group schemes (Rs 2,350cr FY2024, +12% YoY) convert 8–12% to retail; Tier2–3 low-ticket users (~₹300–1,000 txns) target via agents.
| Segment | Key metrics |
|---|---|
| Mass affluent | INR45–75k disp. income; 20–30% alloc |
| HNI | Sum assured >INR5–10cr; APE +18% (2024) |
| Group | Rs2,350cr FY2024; +12% YoY; 8–12% conv |
Cost Structure
Distribution Commissions and Fees
Employee Compensation and Benefits
Maintaining a large workforce of actuaries, underwriters, sales managers and service staff drives major costs—US financial firms spent ~45% of operating expenses on compensation in 2024, and top actuarial hires command $150k–$300k+ base pay; benefits and payroll taxes add ~30% on top. Continuous training and talent programs (avg $2,200 per employee yearly in 2023) further raise HR spend, critical to product design and risk control.
Marketing and Brand Building
Max Life allocates large marketing budgets—about INR 800–1,000 crore in FY2024–25—to TV, digital, and outdoor to keep high brand recall; marketing spend stood near 5–6% of gross written premium in 2024. These costs fund trust-building campaigns, wellness-event sponsorships, and digital lead-gen (CPLs around INR 150–300 in 2024), ensuring top-of-mind consumer preference.
IT Infrastructure and Cybersecurity
Digital-first MFS firms must budget heavily for cloud hosting, dev ops, and rigorous data security; global cloud spend hit 791B USD in 2023 and financial services typically allocate ~10–15% of IT budgets to cybersecurity.
Zero-downtime SLAs and continuous AI/analytics upgrades (average 20–30% annual uplift in model costs) are fixed costs to protect customer data and service availability.
- Cloud & hosting: sizable recurring OPEX
- Cybersecurity: ~10–15% of IT spend
- Uptime SLAs: non-negotiable ops cost
- AI/analytics: 20–30% yearly upgrade cost
Claims Payouts and Regulatory Compliance
The largest cash outflow is death and maturity payouts, mostly funded by policyholder reserves; in FY2024 Indian life insurers paid ~₹1.7 trillion in claims (IRDAI report), keeping solvency ratios above the required 150% limits.
Regulatory costs—filings, audits, compliance with the Insurance Regulatory and Development Authority of India (IRDAI)—add recurring expenses; penalties for breaches can reach crores and threaten the license.
- FY2024 claims paid ≈ ₹1.7 trillion
- Maintain solvency ratio ≥150% (IRDAI rule)
- Regulatory penalties can be multiple crores
- Compliance: filings, actuarial audits, disclosures
Key cost drivers: commissions, comp, marketing, IT/AI, ₹1.7T claims—solvency ≥150%
| Cost Item | 2024/2025 Metric |
|---|---|
| Distribution commissions | ~35% acqu. cost; target 20% by 2026 |
| Compensation | ~45% of ops spend; top actuary $150–300k |
| Marketing | 5–6% GWP; INR 800–1,000 Cr |
| IT/Cyber/AI | Cloud spend rising; cyber 10–15% IT; AI +20–30%/yr |
| Claims paid | ₹1.7T (FY2024); solvency ≥150% |
Revenue Streams
New Business Premium Income
New Business Premium Income is the primary revenue stream from selling new policies, covering single-premium sales and first-year installments of regular-premium plans; in 2024 MFS reported 22% YoY growth in new business premiums to $1.12 billion, signaling distribution gains and market-share expansion.
Recurring Renewal Premiums
Renewal premiums from existing policyholders deliver steady cash flow—US life insurers reported renewal/persistency-related income representing ~65% of total premiums in 2024, stabilizing operating cash.
High persistence ratios (e.g., 12‑month persistency >85% in 2024 for top players) drive long‑term profit since acquisition costs are sunk, so renewal margins commonly exceed new business margins by 8–15 percentage points.
Investment Income and Returns
Max Life invests premiums into diversified debt and equity portfolios, earning interest, dividends, and capital gains; in FY2024 it reported investment income of INR 12,430 crore, which funds policyholder liabilities and boosts profit. For participating policies, roughly 20–30% of surplus investment returns are shared as bonuses to policyholders, aligning returns with solvency needs and customer payouts.
Fund Management Charges
For Unit Linked Insurance Plans the firm charges fund management fees—typically 0.5–1.5% of Assets Under Management (AUM)—for running policyholders’ investment pools, creating steady fee income separate from insurance risk; as AUM rises (India ULIP AUM reached ~INR 3.2 trillion in FY2024 for major players) this becomes a larger share of revenue.
- Fee rate: 0.5–1.5% of AUM
- FY2024 example: major ULIP AUM ~INR 3.2 trillion
- Income: recurring, scales with AUM
Fees from Group and Ancillary Services
The company earns fees from managing corporate group schemes and selling riders/add-on covers, including administration fees for group gratuity and leave-encashment funds; in 2024 similar insurers reported ancillary fee income at 3–6% of total non-life revenue, diversifying income and strengthening institutional ties.
- Ancillary fees ≈3–6% of non-life revenue (2024)
- Includes group gratuity & leave-encashment admin fees
- Smaller than premiums but lowers revenue volatility
- Deepens client stickiness via bundled services
2024 Growth: $1.12B New Business, INR12,430cr Investment Income, ULIP AUM INR3.2T
New business premiums drove 2024 growth: $1.12B (22% YoY); renewals ~65% of premiums, 12‑month persistency >85% for top players; investment income (FY2024) INR 12,430cr; ULIP fees 0.5–1.5% of AUM (major ULIP AUM ~INR 3.2T FY2024); ancillary fees ≈3–6% of non‑life revenue.
| Metric | 2024 |
|---|---|
| New business | $1.12B |
| Renewals | ~65% |
| Investment income | INR 12,430cr |
| ULIP AUM | INR 3.2T |
| Ancillary fees | 3–6% |