HSBC has highlighted concerns over the life insurance sector, noting that individual annualized premium equivalent (APE) growth slowed to 2% year-on-year in February 2025. The brokerage attributed this to a decline in ULIP (unit-linked insurance plan) sales, which has impacted overall sector growth.
However, individual sum assured continues to witness healthy growth, reflecting a shift in consumer preference towards protection-based insurance products. HSBC also pointed out that new non-linked insurance products are being launched, but these may pose near-term growth risks for insurers focused on ULIP-driven revenues.
The brokerage’s assessment suggests that life insurers with a heavy reliance on ULIP products may face margin pressures, while companies with a balanced portfolio, including protection and annuity plans, could see more resilience in their growth trajectories.
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