Hyderabad, August 6, 2025 — Shriram Life Insurance is strategically ramping up its presence in the pension and annuity segment, anticipating a surge in demand as India’s elderly population is projected to more than double by 2050. The company, which primarily serves low- and middle-income households, is positioning annuity products as a cornerstone of its long-term growth strategy.
Casparus J.H. Kromhout, Managing Director and CEO of Shriram Life, emphasized the urgency of retirement planning, stating, “If getting lives covered through term insurance is important, having enough corpus in retirement is equally crucial. That’s why the market is growing.” Currently, annuities account for less than 5% of the insurer’s portfolio, but strong inflows from single-premium products signal rising traction.
The push comes amid sobering projections from the UN Population Fund and NITI Aayog, which estimate that by 2050, 20% of India’s population will be aged 60 and above, with nearly 78% lacking any form of pension coverage. Shriram Life aims to bridge this gap by targeting first-time insurance buyers earning ₹5–15 lakh annually — a segment particularly vulnerable to financial insecurity in retirement.
In Q1 FY26, Shriram Life reported a 21% year-on-year growth in individual new business premium to ₹257 crore, with the average ticket size rising to ₹24,799 from ₹15,192. Individual renewal premiums grew 25% to ₹323 crore, while group insurance premiums surged 36% to ₹283 crore.
Despite the growth, the company posted a net loss of ₹8 crore for the quarter, attributed to capacity-building investments. Kromhout noted, “We’re investing for the future, which will weigh on absolute profits for some time.” He also flagged pricing pressure in the group segment following the implementation of Special Surrender Value (SSV) guidelines in October 2024.
Shriram Life’s renewed focus on annuities aligns with broader efforts to promote financial inclusion and retirement security, especially for underserved communities. As India’s demographic landscape evolves, the insurer is betting that pension products will become an essential pillar of household financial planning.
