Module-Finance Internship (2025)

Report on Fundamental and Ratio Analysis of

SBI Life Insurance

By-Amrita Nayak (DBIT Campus)

Submit to- Mr. Arpit Sir
Designation-Corporate Sales Manager
 ACKNOWLEDGEMENT

It is in particular that I am acknowledging my sincere feeling towards my mentors who

graciously gave me their time and expertise.

They have provided me with valuable guidance, sustained efforts and a friendly approach. It
would have been difficult to achieve the results in such a short span of time without their help.

I deem it my duty to record my gratitude towards the Project Supervisor (Mr. Arpit Sir) who
devoted his/her precious time to interact, guide and give me the right approach to accomplish
the task and also helped me to enhance my knowledge and understanding of the project.

Amrita Nayak

Marketing and Finance Intern

DBIT Campus
 TABLE OF CONTENTS
S.N Particulars Page
o. No.
1. CHAPTER 1: INTRODUCTION

1-4

2. CHAPTER 2: About SBI life Insurance

5-9

3. CHAPTER 3: Fundamental and Ratio Analysis on SBI Life Insurance

10-22

4. CHAPTER 4: About Health Insurance Sector and Important Policies and

23-33
Amendments Changes in Last three years

5. CH-5: Research Methodology

34-35

6. Questionnaire
36-43

7. Findings
44-52

8. Suggestions and Limitations

53-54

9. Conclusion 55
 Ch-1 Introduction on SBI

The State Bank of India (SBI) is India’s largest public sector bank
and one of the most trusted financial institutions in the country.
Its origins go back to 1806 with the establishment of the Bank of
Calcutta. After several mergers and changes, it became the
Imperial Bank of India, and in 1955, it was nationalized to form
the State Bank of India. Its headquarters is located in Mumbai,
Maharashtra.

SBI offers a wide range of banking and financial services to

individuals, businesses, and government bodies. These include
savings and current accounts, loans, credit cards, insurance,
investment products, and digital banking facilities. The bank has
an extensive network of over 22,000 branches and 62,000 ATMs
across India, along with operations in more than 30 countries,
serving millions of customers worldwide.

In recent years, SBI has focused on digital transformation. Its

flagship mobile app, YONO (You Only Need One), provides
customers with banking, shopping, and investment options on a
single platform. The bank also plays a key role in government
schemes such as financial inclusion programs, agricultural credit,
and MSME financing, contributing to the socio-economic growth
of the country.

1.
With a history of over 200 years, SBI is known for its stability,
trust, and commitment to customer service. It continues to adapt
to changing market needs while maintaining its position as a
leader in India’s banking sector. This makes it an ideal institution
for learning about large-scale banking operations and financial
management during an internship.

SBI offers a wide range of services including personal banking

(savings accounts, current accounts, fixed deposits, loans, and
credit cards), corporate banking, agricultural financing, SME and
MSME loans, investment banking, wealth management,
insurance, and treasury operations. The bank also provides
specialized products for Non-Resident Indians (NRIs) and
international trade finance solutions.

In the modern era, SBI has embraced digitalization to enhance

customer convenience and operational efficiency. Its flagship
mobile platform, YONO (You Only Need One), integrates
banking services, investments, insurance, bill payments, and
online shopping into a single application. Other digital offerings
include SBI Net Banking, SBI Quick, and mobile wallets. These
initiatives have positioned SBI as a leader in India’s digital
banking space

. 2.
 Programs such as the Pradhan Mantri Jan Dhan Yojana (PMJDY),
agricultural and rural credit schemes, affordable housing loans,
and MSME support are actively facilitated by the bank. It also
contributes to infrastructure development through project
financing and supports exporters through trade finance solutions.

With a history of over 200 years, SBI is known for its

trustworthiness, stability, and commitment to customer service. It
consistently ranks among the top Indian banks in terms of assets,
profitability, and market share. The bank’s strong governance,
risk management practices, and innovative approach help it
maintain a competitive edge in the global financial landscape.

The State Bank of India (SBI) follows a well-defined

organizational structure designed to ensure smooth operations,
effective decision-making, and accountability across its vast
network in India and abroad. As the largest public sector bank in
the country, its structure is hierarchical, with clearly assigned
roles and responsibilities at each level.

1. Governing Body

 Chairman – The Chairman is the highest executive authority in

SBI, responsible for overall strategy, policy-making, and
leadership.

3.
 Managing Directors (MDs) – SBI has multiple Managing
Directors, each overseeing specific verticals such as Retail
Banking, Corporate Banking, Risk & Compliance, and Digital
Banking.

2. Executive Committee

 Comprises the Chairman, MDs, and select Deputy Managing

Directors (DMDs).

 Responsible for key policy decisions, strategic planning, and

monitoring performance across business units.

3. Deputy Managing Directors (DMDs)

 Oversee specialized functions such as International Banking,

Human Resources, IT & Digital Initiatives, Rural Banking, and
Treasury Operations.

4. Chief General Managers (CGMs)

 Head various Circles (regional clusters of branches) and

corporate departments.

 Each Circle is responsible for operations in a specific

geographical area.

4.
 CH-2 About SBI Life Insurance

SBI Life Insurance Company Limited is one of India’s leading life

insurance providers, offering a broad range of individual and group
insurance products to meet diverse customer needs. It is a joint venture
between the State Bank of India (SBI), India’s largest public sector
bank, and BNP Paribas Cardiff, a global leader in insurance and asset
management. Established in 2001, SBI Life has grown rapidly,
becoming a trusted name in the life insurance sector due to its strong
brand equity, robust distribution network, and customer-centric
approach.

Headquartered in Mumbai, SBI Life Insurance operates across India

through a multi-channel distribution system. This includes over 900
branch offices, a vast network of more than 18,000 SBI branches as
bancassurance partners, corporate agents, brokers, and a growing
digital presence. The company’s product portfolio covers protection
plans, savings and investment plans, retirement solutions, and child
plans, catering to individuals, families, and businesses.

One of SBI Life’s key strengths lies in its financial stability and
credibility, backed by the reputation and nationwide reach of the State
Bank of India. It has consistently maintained healthy claim settlement
ratios, high persistency rates, and transparent policy servicing, which
has strengthened customer trust.

5.
The company also focuses on digital transformation through online
policy purchase, premium payment facilities, and mobile-based policy
servicing, making insurance more accessible and convenient.

SBI Life plays a proactive role in promoting financial literacy and

insurance awareness, especially in rural and semi-urban areas. It aligns
its operations with regulatory requirements set by the Insurance
Regulatory and Development Authority of India (IRDAI), ensuring
ethical practices and customer protection. Over the years, it has
received multiple awards for service excellence, digital innovation, and
corporate governance.

 Merits of SBI Life Insurance-

1. Strong Brand Reputation – Backed by SBI and BNP

Paribas Cardiff, the company enjoys high customer trust
and credibility.
2. Wide Distribution Network – Access to SBI’s vast branch
network and strong agent base ensures nationwide reach,
including rural markets.
3. Comprehensive Product Range – Offers diverse plans to
meet different needs, from term insurance to retirement and
savings plans.
4. High Claim Settlement Ratio – Maintains a healthy
claim settlement ratio, reflecting reliability in fulfilling
commitments.
5. Digital Accessibility – Online policy purchase, premium
payment, and service requests make processes simple and
time-efficient

6.
  Demerits of SBI Life Insurance-

1. Higher Premium Costs – Some products may have higher

premiums compared to competitors for similar coverage.
2. Complex Policy Terms – Certain investment-linked and ULIP
products have terms that may be difficult for first-time customers
to understand.

SBI Life Insurance – Company Profile

Particulars Details
Company Name SBI Life Insurance Company Limited
Type Public Limited Company
Year of 2001
Establishment
Headquarters Mumbai, Maharashtra, India
Promoters State Bank of India (SBI) – 55.50% stake,
BNP Paribas Cardif – 0.20% stake (as of recent
filings)
Industry Life Insurance
Products Protection Plans, Savings Plans, ULIPs, Child
Plans, Retirement Plans, Group Insurance
Distribution Bancassurance, Agency Network, Brokers,
Channels Corporate Agents, Digital Platforms
Claim Settlement ~97% (varies annually as per IRDAI reports)
Ratio
Regulatory Body Insurance Regulatory and Development
Authority of India (IRDAI)
Stock Exchange NSE & BSE
Listing
Tagline “With Us, You’re Sure”

History and Milestones of SBI Life

Insurance

Year Milestone / Event

Incorporated as a joint venture between State Bank
2001 of India (SBI) and BNP Paribas Cardiff; operations
commenced in October 2001.
Introduced the bancassurance model, using SBI’s
2002 extensive branch network to distribute life
insurance products.
Expanded product portfolio to include term plans,
2004 savings plans, and Unit Linked Insurance Plans
(ULIPs).
 Crossed 1 million policyholders; expanded through
2006
corporate agency and broker channels.
Ranked among the fastest-growing life insurance
2007
companies in India.
Surpassed ₹5000 crore in Gross Written Premium;
2010
expanded reach into semi-urban and rural markets.
Launched online premium payment facilities and
2011
customer self-service portals.
Strengthened CSR activities focusing on education,
2015
healthcare, and financial literacy in rural areas.
Listed on the National Stock Exchange (NSE) and
2017
Bombay Stock Exchange (BSE).
Enhanced digital platforms, including mobile app
2018
services and online policy issuance.
Introduced new protection-focused term insurance
2020
plans during the COVID-19 pandemic.
Achieved claim settlement ratio exceeding 97%,
2022
reinforcing customer trust.
Reported strong financial growth with an emphasis
2023
on customer experience and digital integration.

9.
CH-3 Fundamental and Ratio Analysis on SBI

Life Insurance

SBI Life Insurance Company Ltd is one of India’s leading life

insurance providers. It operates in the financial services sector, offering
a wide range of life insurance products and services to individuals and
corporate clients.

The company has a market capitalization of ₹172,491.57 crore and is

listed on both the Bombay Stock Exchange (BSE) and National Stock
Exchange (NSE). Currently, the stock is trading 4% below its 52-week
high and 36.21% above its 52-week low.

SBI Life Insurance Company Ltd Financial Results

SBI Life Insurance Company Ltd has seen its sales fluctuate over the
past three years, with a notable increase in FY 24 to ₹1,31,988 crore
from ₹80,636 crore in FY 23 and ₹82,983 crore in FY 22. The Net Profit
for FY 24 is ₹1,894 crores

1. Revenue Trend: Sales rose significantly from ₹80,636 crore in FY

23 to ₹1,31,988 crore in FY 24 after a slight dip from ₹82,983 crore in
FY 22.

2. Equity and Liabilities: Equity amounts to ₹10,529 crores, while

liabilities total ₹1,45,690 crores, indicating the company’s financial.
10.
3. Profitability: Operating Profit Margin (OPM) improved marginally
to 1% in FY 24 from 0% in FY 23 and 2% in FY 22.

4. Earnings per Share (EPS): EPS increased to ₹18.92 in FY 24 from

₹17.19 in FY 23 and ₹15.06 in FY 22, indicating growing profitability.

5. Financial Position: The company’s financial position strengthened

with EBITDA increasing from ₹2,590 crore in FY 22 to ₹2,357 crore
in FY 24, showcasing robust financial health and effective
management.

SBI Life Insurance Company Financial Analysis

FY 24 FY 23 FY 22
Sales 1,31,988 80,636 82,983
Expenses 1,31,308 80,261 81,425
Operating 679 375 1,558
Profit
OPM % 1 0 2
Other Income 1,678 1,758 1,032
EBITDA 2,357 2,133 2,590
Interest 9 10 10
Depreciation 76 68 0
Profit Before 2,272 2,055 2,580
Tax
Tax % 8 9 36
 Net Profit 1,894 1,721 1,506
EPS 18.92 17.19 15.06

Dividend 14.27 14.54 13.28

Payout %

* Consolidated Figures in Rs. Crores.

SBI Life Insurance Company Ltd Company

Metrics

SBI Life Insurance Company’s market cap is ₹172,491.57 crore with a

book value of 155 per share. The face value per share is ₹10, ROE is
13.97%, and quarterly EBITDA is ₹596.97 crore. The dividend yield
stands at 0.16%.

Market Capitalization:

Market Capitalization represents the total market value of SBI Life

Insurance Company’s outstanding shares, amounting to ₹172,491.57
crore.

Book Value:

The book value per share of SBI Life Insurance Company is ₹155
indicating the value of the company’s net assets divided by its shares
outstanding.

12.
Face Value:

The face value of SBI Life Insurance Company’s shares is ₹10, which
is the nominal value of each share as stated on the share certificate.

Asset Turnover Ratio:

The Asset Turnover Ratio of 0.45 measures how efficiently SBI Life
Insurance Company uses its assets to generate sales revenue or sales
income.

Return on Equity (ROE):

The ROE of 13.97% measures SBI Life Insurance Company’s

profitability by revealing how much profit the company generates with
the money shareholders have invested.

EBITDA (Q):

The quarterly EBITDA (Earnings Before Interest, Taxes, Depreciation,

and Amortization) of SBI Life Insurance Company is ₹596.97 crore,
indicating the company’s operating performance.

Dividend Yield:

The dividend yield of 0.16% shows the annual dividend payment as a

percentage of SBI Life Insurance Company’s current share price,
indicating the return on investment from dividends alone.

13.
 SBI Life Insurance Company Stock

Performance

SBI Life Insurance Company Ltd demonstrated returns of 31.5% in one

year, 14.8% over three years, and 16.3% over five years, highlighting
its strong growth potential and consistent performance across various
timeframes.

Period Return on Investment (%)

1 Year 31.5
3 Years 14.8
5 Years 16.3

Example: If an investor had invested ₹1,000 in SBI Life Insurance

Company’s stock:

1 year ago: An investment of ₹1,000 would now be worth ₹1,315.

3 years ago: That investment would have grown to approximately

₹1,448.

5 years ago: The initial ₹1,000 would have increased to around ₹1,163.

14.
 SBI Life Insurance Company Ltd Peer

Comparison

SBI Life Insurance Company Ltd, with a market cap of ₹1,71,891 crore
and a P/E ratio of 91.08, showcases a solid performance with a 32%
one-year return and 13% ROCE. Despite a lower dividend yield of
0.16%, its ROE at 13.97% and EPS of ₹18.92 indicate robust
profitability compared to peers in the insurance sector.

Name CMP Mar P/E ROE EPS 1Yr ROCE Div

Rs. Cap % 12M return % Yld
[Link]. Rs. % %
Life 1,097 6,94,137 17 63 66 72 73 0.93
Insurance
SBI Life 1,716 1,71,891 85 12 20 32 13 0.16
Insurance
HDFC 704 1,51,440 93 11 8 11 6.61 0.28
Life
Insurance
ICICI 736 1,06,105 122 8 6 32.01 8.75 0.08
Pru Life
ICICI 1,966 97,011 46 17 43 43 23 0.31
Lombard
General 398 69,781 10 13 41 93 15.78 1.81
Insurance
New 249 40,986 37 4 7 100 5.2 0.80
India
Assura

SBI Life Insurance Company Shareholding

Pattern

SBI Life Insurance Company Ltd’s shareholding structure shows a

steady majority hold by promoters at around 55% throughout the period
from December 2023 to June 2024. FII ownership has slightly
decreased, while DII investments have grown, indicating increasing
domestic institutional confidence. Retail participation remains stable at
just under 4%.

All values in % Jun-24 Mar-24 45,261

Promoters 55.42 55.42 55.43
FII 24.71 25.16 25.92
DII 15.88 15.40 14.63
Retail & 3.98 4.01 4.01
others

16.
 SBI Life Insurance Company History

SBI Life Insurance Company Limited is a prominent player in India’s

life insurance sector. The company operates through three main
segments: Participating, Non-Participating, and Linked segments,
offering a comprehensive range of insurance products catering to
various customer needs.

The Participating segment of SBI Life Insurance includes products like

Individual Life, Individual Pension, Group Pension, and Variable
Insurance. These products typically offer policyholders a share in the
company’s profits. The Non-Participating segment covers Individual
Life, Individual Pension, Group Savings, and other specialized
products like Annuity and Health insurance.

SBI Life Insurance has developed a diverse portfolio of products to

address different market segments. For corporate clients, the company
offers retirement solutions such as SBI Life-Kalyan ULIP Plus and SBI
Life-Pradhan Mantri Jeevan Jyoti Bima Yojana. The company also
caters to rural markets with its Group Micro Insurance Plans like SBI
Life-Grameen Super Suraksha, demonstrating its commitment to
financial inclusion.

17.
How To Invest in SBI Life Insurance Company

Ltd Share?

To invest in SBI Life Insurance Company Ltd shares, begin by

opening a demat account with Alice Blue. Complete the necessary
KYC process and fund your account with the desired investment
amount.

Research the company’s fundamentals, financial performance, and

market trends before making an investment decision. Use the trading
platform provided by the broker to place a buy order for SBI Life
Insurance Company shares at your preferred price.

Monitor your investment regularly and stay informed about company

news and market developments. Consider setting up a systematic
investment plan (SIP) for long-term investing in the stock if it aligns
with your financial goals.

18.
 Key Financial Ratios of SBI Life Insurance Company

(In Rs. Cr.)

Per Share Ratios MAR 25 MAR 24 MAR 23 MAR 22

Basic EPS (Rs.) 24.09 18.92 17.19 15.06

Diluted EPS (Rs.) 24.07 18.90 17.18 15.04
Cash EPS (Rs.) 24.08 19.67 17.87 15.06
Book Value 169.49 148.87 130.06 116.18
[ExclRevalReserve]/Share
(Rs.)
Dividend / Share (Rs.) 2.70 2.70 2.50 2.00
Revenue from 1,166.39 1,317.95 805.64 829.53
Operations/Share (Rs.)
PBDIT/Share (Rs.) 29.41 23.54 21.31 25.89
PBIT/Share (Rs.) 29.41 22.77 20.63 25.89
PBT/Share (Rs.) 29.41 22.68 20.53 25.79
Net Profit/Share (Rs.) 24.08 18.91 17.19 15.05
Book Value 169.49 148.87 130.06 116.18
[InclRevalReserve]/Share
(Rs.)

19.
Profitability
MAR 25 MAR 24 MAR 23 MAR 22
Ratios

PBDIT 2.52 1.78 2.64 3.12

Margin (%)
PBIT Margin 2.52 1.72 2.56 3.12
(%)
PBT Margin 2.52 1.72 2.54 3.10
(%)
Net Profit 2.06 1.43 2.13 1.81
Margin (%)
Return on 14.20 12.70 13.21 12.95
Networth /
Equity (%)
Return on 0.65 0.58 0.66 0.96
Capital
Employed
(%)
Return on 0.52 0.47 0.54 0.55
Assets (%)
Total 0.00 0.00 0.00 0.00
Debt/Equity
(X)
Asset 0.27 0.37 0.27 0.33
Turnover
Ratio (%)

20.
Liquidity MAR 23 MAR 22
MAR 25 MAR 24
Ratios
Current Ratio 1.39 2.13 1.85 1.48
(X)
Quick Ratio 1.39 2.13 1.85 1.48
(X)
Inventory 0.00 0.00 0.00 0.00
Turnover
Ratio (X)
Dividend 0.00 14.27 14.54 13.28
Payout Ratio
(NP) (%)
Dividend 0.00 13.72 13.99 13.28
Payout Ratio
(CP) (%)
Earnings 0.00 85.73 85.46 86.72
Retention
Ratio (%)
Cash 0.00 86.28 86.01 86.72
Earnings
Retention
Ratio (%)

21.
 Valuation Mar 23
MAR 25 MAR 24 MAR 22

Ratios
Enterprise 153,289.65 145,268.63 105,898.47 108,857.30

Value (Cr.)
EV/Net 1.31 1.10 1.31 1.31

Operating
Revenue (X)
EV/EBITDA 52.01 61.63 49.65 42.02

(X)
Market 1.33 1.14 1.36 1.35

Cap/Net
Operating
Revenue (X)
Retention 0.00 85.72 85.45 86.71

Ratios (%)
Price/BV 9.13 10.06 8.46 9.64

(X)
Price/Net 1.33 1.14 1.36 1.35

Operating
Revenue
Earnings 0.02 0.01 0.02 0.01

Yield

22.
 CH-4 About Health Insurance Sector in India

The health insurance sector in India has grown rapidly over the last two decades,
driven by rising healthcare costs, greater health awareness, and government
initiatives. It includes both public and private insurers offering products like
individual plans, family floaters, critical illness policies, and group health
insurance. Regulatory oversight is provided by the Insurance Regulatory and
Development Authority of India (IRDAI) to ensure consumer protection and
market stability. Government schemes like Ayushman Bharat - PM-JAY have
expanded coverage for economically weaker sections, while private companies
focus on customized products, cashless hospitalization, and wellness benefits.
Increasing digitization, telemedicine tie-ups, and wellness-linked incentives are
reshaping the sector.

The health insurance sector in India forms a crucial part of the country’s
healthcare and financial ecosystem, offering individuals and families protection
against the high costs of medical treatment. Historically, health insurance in India
was limited in reach and dominated by public sector insurers like New India
Assurance, United India Insurance, Oriental Insurance, and National Insurance.
However, economic liberalization in the 1990s and regulatory reforms led to the
entry of private players such as ICICI Lombard, HDFC ERGO, Star Health,
Niva Bupa, and Manipal Cigna, significantly expanding consumer choices.

The Insurance Regulatory and Development Authority of India (IRDAI) governs

the sector, ensuring fair practices, standardized policies, and customer rights
protection. Over the years, IRDAI has introduced reforms such as standardization
of policy terms, portability of policies, and caps on exclusions to make health
insurance more consumer-friendly.

23.
Health insurance products in India range from individual health plans, which
cover a single person, to family floater policies that cover multiple family
members under one sum insured, and critical illness plans that pay a lump sum
upon diagnosis of serious illnesses like cancer or heart disease. Employers also
frequently provide group health insurance, a significant contributor to urban
coverage rates.

Government-led programs have played a major role in boosting insurance

penetration. Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (PM-
JAY), launched in 2018, aims to provide health cover of ₹5 lakh per family per
year to over 50 crore beneficiaries from economically weaker sections. State
governments also run schemes like Aarogya Sri (Telangana/Andhra Pradesh)
and Bhama shah Swasthya Bima Yojana (Rajasthan).

The sector is witnessing transformative trends — cashless hospitalization

networks have grown, digital claim processing has reduced settlement times, and
wellness-linked plans now reward policyholders with premium discounts for
maintaining healthy lifestyles. Additionally, the COVID-19 pandemic accelerated
awareness about health insurance, resulting in a surge in policy purchases,
especially for specialized covers like COVID-19-specific plans (Corona
Kavach and Corona Rakshak).

Challenges remain, including low penetration in rural areas, high out-of-pocket

expenses despite insurance, and affordability barriers for low-income groups.
However, with rising middle-class incomes, better awareness, supportive
regulations, and innovative products, the health insurance sector in India is
expected to continue its robust growth trajectory.

24.
 Tabular Summary

Aspect Details
Regulator Insurance Regulatory and
Development Authority of India
(IRDAI) – ensures fair practices,
customer protection, and market
regulation
Major Public Sector Players New India Assurance, United India
Insurance, Oriental Insurance,
National Insurance, ECGC, AIC
Major Private Sector Players ICICI Lombard, HDFC ERGO, Star
Health, Niva Bupa, Manipal Cigna,
Care Health Insurance, Aditya Birla
Health
Types of Plans Individual Health Plans, Family
Floater Plans, Critical Illness Plans,
Group Health Insurance, Senior
Citizen Plans, Top-up/Super Top-up
Plans
Key Government Schemes Ayushman Bharat – PM-JAY (₹5 lakh
coverage for 50+ crore poor), Rastriya
Swasthya Bima Yojana (RSBY),
Aarogya Sri (Telangana/AP), Bhama
shah Swasthya Bima Yojana
(Rajasthan)
Recent Trends Cashless hospitalization networks,
digital policy issuance, telemedicine
tie-ups, wellness-linked discounts,
disease-specific covers (e.g., COVID-
19 plans)
Growth Drivers Rising healthcare costs, increased
health awareness, expanding middle
class, supportive regulations, digital
adoption
Challenges Low penetration in rural areas, high
out-of-pocket expenses, affordability
issues for low-income groups, claim
settlement delays in some cases
Opportunities Micro-insurance for rural markets,
integrated health-tech services, AI-
driven underwriting, preventive
healthcare packages

26.
 Policies Changed in Last Three Years in

Health Insurance Sector in India

In the last three years, India’s health insurance sector has undergone major
changes to improve accessibility, transparency, and digital integration. The
Insurance Regulatory and Development Authority of India (IRDAI) has reduced
waiting and moratorium periods for pre-existing diseases, mandated fully digital
policies through e-Insurance Accounts, and launched the National Health Claims
Exchange for faster claim settlements. Senior citizens have gained protection
from excessive premium hikes, and Ayushman Bharat PM-JAY has been
expanded to cover all citizens aged 70+. State-level schemes like Kerala’s
MEDISEP Phase II have raised coverage limits and expanded treatment lists. The
government is also moving towards centralized monitoring to curb hospital
overcharging, while regional reforms and environmental health factors are
influencing policy pricing.

Over the past three years (2022–2025), India’s health insurance sector has seen
transformative policy reforms aimed at making healthcare more affordable,
transparent, and technology-driven. One of the most significant changes was
IRDAI’s decision in April 2024 to mandate the issuance of all health insurance
policies in digital form via e-Insurance Accounts (eIA). This ensures that every
policyholder can securely store and access their policies in one place, eliminating
paperwork and reducing fraud risks.

In May 2024, IRDAI issued a Master Circular that reduced the waiting period
for pre-existing diseases to three years and shortened the moratorium period
from eight to five years.

27.
This means policyholders can claim benefits sooner and with greater certainty,
improving trust in insurance products. Alongside this, the National Health
Claims Exchange (NHCX) was launched in June 2024 to centralize claim
processing between hospitals, insurers, and government schemes, resulting in
faster settlements and reduced disputes.

For senior citizens, the regulator introduced a cap on annual premium hikes at
10% for those aged 60+, providing much-needed cost stability for a vulnerable
demographic. In September 2024, the Ayushman Bharat PM-JAY scheme was
expanded to provide ₹5 lakh per family per year to all citizens aged 70 and above,
potentially benefiting around 60 million additional people.

At the state level, Kerala implemented MEDISEP Phase II in August 2025,

increasing coverage from ₹3 lakh to ₹5 lakh, adding over 2,100 new procedures
(including organ transplants and joint replacements), and enhancing benefits like
room rent allowances. The scheme also introduced QR-based hospital access and
an improved grievance redressal system.

To tackle overcharging by hospitals, the central government in 2025 initiated

plans to move insurance services to a government-monitored portal, ensuring
strict supervision of premiums and claims. Additionally, states like Jharkhand
allowed hospitals to retain a portion of insurance revenues for staff incentives,
improving service quality.

Interestingly, environmental health risks have started to influence pricing, with

insurers in early 2025 proposing a 10–15% premium hike for Delhi residents
due to rising respiratory illnesses linked to air pollution — marking a shift
towards location and lifestyle-based premium models.

28.
 Key Policy Changes (2022–2025)

1. Mandatory Digital Insurance (e-Insurance Accounts)

From April 1, 2024, IRDAI mandated that all health insurance policies be issued
in digital form via an e-Insurance Account (eIA)—a centralized digital locker for
storing and managing insurance documents.

2. Reduced Waiting and Moratorium Periods

As per the Master Circular issued May 2024, the waiting period for pre-
existing diseases is now 3 years (reduced from longer periods), and the
moratorium period has been shortened from 8 years to 5 years. These reforms
became effective by September 30, 2024, for all new and renewing policies.

3. Capping Premium Hikes for Senior Citizens

Starting early 2025, IRDAI capped annual premium increases for

policyholders aged 60+ at 10%. Insurers exceeding this cap must seek IRDAI
approval and establish senior-focused grievance mechanisms.

4. Implementation of National Health Claims Exchange (NHCX)

In June 2024, India launched the National Health Claims Exchange (NHCX)—
a digital platform to streamline and centralize health insurance claim processing,
integrating hospitals, insurers, and government schemes for more efficient
operations.

5. Enhanced Coverage for Citizens 70+ Under PM-JAY

In September 2024, the government expanded Ayushman Bharat PM-JAY to

offer ₹5 lakh (USD ~$6,000) insurance coverage per family annually to all
citizens aged 70 and above.

29.
6. Kerala’s MEDISEP Phase II Scheme Enhancements

In August 2025, Kerala approved Phase-II of its MEDISEP scheme for

government employees and pensioners. It raises basic coverage from ₹3 lakh to
₹5 lakh, adds over 2,100 procedures, includes organ transplants, knee/hip
replacements, emergency treatments, room rent allowances, a grievance redressal
system, and QR-code–enabled access.

7. Government Oversight on Hospital Overcharging & Portal Shift

In recent developments (2025), the government is moving health insurance

services onto a centralized, government-monitored digital platform to clamp
down on hospital overcharging and enhance transparency in premiums and
claims.

8. Finance Ministry Push for Improved Claims and Governance

Also in 2025, the Finance Ministry urged IRDAI to strengthen claims settlement
efficiency, grievance redressal mechanisms, and corporate governance within
the health insurance industry to boost accessibility and consumer trust.

10. Air Pollution Factor in Premium Setting

In early 2025, insurers proposed a 10–15% premium hike for Delhi residents—
linking costs to increased respiratory claims stemming from high pollution levels.
This was under consideration, pending IRDAI approval.

30.
 Important Amendments Changed in Last

Three Years in Health Insurance Sector in

India

In the past three years, IRDAI and the Government of India have introduced
several key amendments to improve coverage, speed up claims, and protect
policyholders. Major changes include:
- Digital policy mandate through e-Insurance Accounts (eIA)
- Reduced waiting period for pre-existing diseases to 3 years
- Shortened moratorium period from 8 to 5 years
- Cap on premium hikes for senior citizens at 10% annually
- Launch of National Health Claims Exchange (NHCX) for faster, centralized
claims processing
- Expansion of Ayushman Bharat PM-JAY to cover all citizens aged 70+ with
₹5 lakh coverage
- State-level reforms like Kerala’s MEDISEP Phase II, enhancing coverage and
benefits
- Government-monitored digital portal to curb hospital overcharging
- Premium adjustments based on environmental health risks like pollution

Detailed Explanation

1. Digital Policy Issuance – e-Insurance Accounts (2024)

From April 1, 2024, IRDAI made it mandatory for all health insurance policies
to be issued in digital form through e-Insurance Accounts (eIA). This move
ensures secure storage, easy retrieval, and paperless policy management,
reducing administrative hassles and fraud risks.

31.
2. Reduced Waiting Period for Pre-Existing Diseases (2024)

The waiting period for coverage of pre-existing diseases was reduced to a

maximum of 3 years, making health insurance benefits accessible sooner for
policyholders.

3. Shortened Moratorium Period (2024)

IRDAI reduced the moratorium period from 8 years to 5 years. After this period,
insurers cannot reject claims (except in fraud cases), increasing trust in long-term
policy holding.

[Link] on Premium Hikes for Senior Citizens (2025)

To protect older policyholders from steep cost increases, IRDAI capped annual
premium hikes at 10% for customers aged 60+, unless special approval is granted.

[Link] Health Claims Exchange (NHCX) – June 2024

This government-backed digital platform connects hospitals, insurers, and

government schemes to enable real-time, cashless, and standardized claim
settlements.

6. Ayushman Bharat PM-JAY Expansion (September 2024)

The flagship health insurance scheme now covers all citizens aged 70+ with an
annual cover of ₹5 lakh per family, benefiting around 60 million more people.

7. Kerala’s MEDISEP Phase II (August 2025)

For state employees and pensioners, coverage was increased from ₹3 lakh to ₹5
lakh, over 2,100 procedures were added (including transplants), and benefits like
QR-based hospital entry and grievance redress systems were introduced.

32.
[Link] Portal for Health Insurance Supervision (2025)

To tackle hospital overcharging and improve transparency, the government is

shifting health insurance processes to a central, monitored digital platform.

[Link] Retention Reform in Jharkhand (2025)

Government hospitals can now retain 25% of claim revenues for staff incentives,
encouraging better service delivery.

[Link] Risk-Based Premium Adjustments (2025)

Some insurers have proposed premium hikes of 10–15% for Delhi residents due
to higher respiratory illness claims linked to pollution — signaling a move toward
location-based pricing.

33.
 Ch-5 Research Methodology

Research methodology in the insurance sector refers to the systematic process of

collecting, analyzing, and interpreting data to understand market trends, customer
preferences, policy performance, and emerging opportunities. In India, life
insurance focuses on risk coverage and investment-linked products, while health
insurance centers on medical expense coverage and wellness services. Research
plays a vital role in helping insurers, regulators, and policymakers design better
products, improve claim processes, and enhance customer satisfaction.

The main objectives of research in the life and health insurance sector include:
• To assess customer awareness and perception of insurance products.
• To evaluate satisfaction levels with policy features, claim settlement, and service
quality.
• To identify gaps between customer expectations and actual services offered.
• To study the market trends and regulatory impact on insurance growth.
• To suggest improvements in product design and service delivery.

The methodology involves defining objectives, choosing research design,

selecting data sources, and analyzing collected data. Data sources are broadly
classified into primary and secondary:

• Primary Data: Collected directly from respondents through surveys,

interviews, or observations.
• Secondary Data: Sourced from industry reports, IRDAI publications,
company annual reports, and government statistics.

34.
Primary research is essential in the life and health insurance sector as it
provides first-hand, current information directly from the target audience,
including policyholders, potential customers, insurance agents, hospitals, and
claim processors. It helps understand consumer behaviour, preferences, trust
factors, and service expectations.
Key methods include:
1. Surveys & Questionnaires – Measure customer satisfaction, awareness, and
reasons for purchasing or not purchasing insurance.
2. Interviews – Collect detailed qualitative data from agents, customers, or
medical service providers.
3. Focus Group Discussions – Understand collective perceptions about policy
features and services.
4. Observation Studies – Identify operational bottlenecks and service delays.
Advantages:
• Directly relevant to the current market.
• Provides both qualitative and quantitative insights.
• Helps uncover unmet customer needs.
Challenges:
• Time-consuming and expensive.
• Requires careful questionnaire design.
• May face low participation or incomplete responses.

5. Conclusion

Research methodology is the backbone of decision-making in the life and health

insurance sector. While secondary research provides background and context,
primary research offers in-depth, real-time insights into customer behavior and
service quality.

35.
Ch-6 Questionnaire
43.
CH-7 Findings

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 52.

Ch-8 Suggestions and Limitations

SBI Life Insurance – Fundamental & Ratio Analysis: Suggestions-

 Diversify investment portfolio to reduce risk exposure.

 Leverage technology for better policy servicing and cost efficiency.
 Expand rural market penetration with tailored products.
 Enhance persistency ratios by improving after-sales engagement.
 Strengthen solvency margins for long-term sustainability.
 Introduce innovative products blending protection with wealth
creation.

SBI Life Insurance – Fundamental & Ratio Analysis: Limitations-

 Market volatility affects investment returns.

 Regulatory constraints limit certain product innovations.
 Dependency on bancassurance channel for major sales.
 Competitive pricing pressure from other private insurers.
 Persistency challenges in maintaining long-term customers.
 Limited global exposure compared to some competitors.
 53.

Health Insurance Sector – Suggestions-

 Increase awareness through public health literacy campaigns.

 Simplify claim processes to reduce rejection rates and delays.
 Strengthen digital infrastructure for policy management and cashless
claims.
 Offer affordable micro-insurance plans for rural and low-income groups.
 Enhance preventive care coverage (e.g., screenings, vaccinations).
 Improve regulatory compliance to avoid mis selling and fraud.
 Promote wellness programs linked with premium discounts.

Health Insurance Sector – Limitations-

 Low penetration in rural and semi-urban areas.

 High premiums for elderly and pre-existing conditions.
 Complex policy terms causing confusion among policyholders.
 Delayed claim settlements affecting trust.
 Limited coverage for certain chronic or lifestyle diseases.
 Over-dependence on employer-provided insurance for formal sector
workers.
 Fraudulent claims increasing overall costs.
 54.

Ch-9 Conclusion

SBI Life Insurance shows consistent growth in profitability, revenue, and return
ratios, supported by strong bancassurance channels and brand trust. Its VNB
margins are stable after a brief dip, and persistency remains a focus area.
However, its high valuation suggests the stock is priced for growth, leaving
limited room for error. Overall, it reflects financial strength, operational
efficiency, and long-term sustainability.

The Indian health insurance sector is expanding rapidly due to rising healthcare
costs, increasing awareness, and supportive government schemes. It faces
limitations like low rural penetration, high premiums for vulnerable groups, and
complex claim processes. With digital transformation, regulatory support, and
product innovation, the sector has strong potential to become a core pillar of
India’s healthcare ecosystem.

The health insurance sector in India is on a strong growth trajectory, driven by

rising medical costs, increasing health awareness, and government-backed
initiatives like Ayushman Bharat. This growth is further supported by the
expanding middle class, higher disposable incomes, and a shift towards
preventive healthcare. However, the sector still faces notable challenges such as
low penetration in rural and semi-urban areas, high premium costs for senior
citizens and people with pre-existing conditions, and often complicated claim
settlement processes. Addressing these issues through affordable products,
simplified policy structures, and improved digital claim systems will be key to
unlocking the sector’s full potential.