Top 10 insurance companies in India by market cap

Why opt for life and health insurance?

Life and health insurance policies are essential tools to protect yourself and your family from life’s uncertainties. These policies can make all the difference in times of crisis, be it a medical emergency or an untimely death.

Also Read: Budget 2024: Unpacking farmer income, housing, health insurance for ASHA, anganwadi workers 

Here’s why turning to leading insurance companies could be a smart move:

• It protects your family’s financial future in the event of your absence or a critical illness.
• It covers your expensive hospital bills, treatments, and surgeries, reducing out-of-pocket expenses.
• It helps to repay outstanding debts, ensuring your liabilities don’t pass on to your loved ones.
• It offers income replacement if you're the primary earner, maintaining your family's lifestyle.
• It supports long-term planning like retirement, estate transfer, and tax savings.

How to select a life insurance company?

With many leading insurance companies in India competing in the market today, it's important to look beyond the hype and compare them based on key factors that reflect value, trust, and performance.

Remember these things while selecting a life or health insurance company:

1. Claim settlement ratio (CSR): A higher ratio means the company settles most claims, indicating reliability and financial responsibility.
2. Policy options and coverage: Choose a provider that offers plans based on your life stage, income, and financial objectives. Also, look for flexibility in coverage.
3. Premium affordability: Compare premiums across providers and choose a plan that balances cost and coverage.
4. Customer service and support: Among the leading insurance companies, choose the one which offers both online and offline customer service to make the process smoother, especially during claims or queries.
5. Company reputation and track record: Look at the company reviews, years in the business, and how the insurer has handled claims and payouts over time.

Types of life insurance available in India

Here’s a quick look at some popular types of life insurance policies in companies and what they offer.

1. Term Insurance

This insurance covers a set number of years—10, 20, 30, or more. If the policyholder passes away during this term, the nominee gets the payout. It doesn’t offer maturity benefits unless it's a Return of Premium plan. Term insurance is generally more affordable and suits young or sole earners.

2. Whole Life Insurance

This covers you for your entire life, as many years as you live. The payout is guaranteed if premiums are paid, and it also builds a cash value over time. This makes it helpful for protection and for borrowing funds during emergencies.

3. Unit-Linked Insurance Plans (ULIPs)

ULIPs combine insurance with investment. Part of your premium will go into life cover and the rest into equity, debt, or hybrid funds. If you’re planning long-term financial goals like higher education or early retirement, this one’s for you.

4. Retirement Life Insurance

It is also known as a pension or annuity plan, and helps build a retirement corpus. After retirement, you receive regular income, which supports daily living while offering life coverage.

Each of these serves different life stages and financial goals. What works for one person may not work for another; therefore, comparing plans based on your priorities can help you make a better choice among the leading insurance companies.

What are the risks involved?

Though many leading insurance companies in India offer benefits, they’re associated with certain risks:

1. Investment and market risks: Returns from market-linked plans like ULIPs depend on market performance, which can be unpredictable and impact payouts.
2. Tech disruptions: Automation, digital KYC, and AI-led platforms shift responsibilities between insurers, brokers, and tech providers, sometimes impacting accountability.
3. Geopolitical instability: Conflicts and trade tensions can disrupt supply chains, damage property, and increase claims.
4. Economic uncertainties: Fluctuating interest rates and volatile markets affect insurer solvency and investment returns.
5. Data privacy regulations: Non-compliance with laws like the Digital Personal Data Protection (DPDP) Act 2023 can result in fines and trust issues.
6. Cybersecurity threats: The increasing data breaches and hacks can lead to fraud, identity theft, and major financial losses.