Mumbai: Life insurers are sharpening their focus on annuity and pension products, betting on an ageing population to drive long-term growth. Aditya Birla Sun Life Insurance is launching index-guaranteed annuity plan, while SBI Life Insurance and HDFC Life Insurance are planning deferred and variable annuity offerings.
The change comes with rising longevity, limited social security coverage and growing awareness around the need for stable post-retirement income.
Pension and annuity segments together consist of 18.87% of the total life insurance industry, as of March 2025. This segment is growing faster than the industry for most insurance companies.
Annuities offer sticky, capital-efficient business, but require careful pricing and hedging discipline in a volatile rate environment. SBI Life Insurance, which saw annuity and pension contributing 36% of individual new business in Q3FY26, is working on a deferred annuity product to address the demand for long term retirement solutions.