NCR emerges as strong life insurance market, Gurugram leads premium growth

New Delhi: The National Capital Region, comprising Delhi, Gurugram and Gautam Buddha Nagar (Noida), has emerged as one of the stronger-performing markets in India’s life insurance sector, with rising premiums, policy volumes and demand for higher-value protection, according to an analysis by the Insurance Information Bureau of India (IIB).

The IIB study, which examined life insurance business data between FY2020-21 and FY2024-25, found that Gurugram recorded the strongest growth in Annualised Premium (AP), which increased 1.81 times over the five-year period. Gautam Buddha Nagar followed with a 1.68-fold rise. Policy volumes also increased substantially, growing 18.5% in Gurugram and 22.4% in Gautam Buddha Nagar.

Delhi, meanwhile, stood out for the level of protection purchased by policyholders. The average sum assured per policy in the national capital reached ₹8.77 lakh in FY2024-25, nearly twice the national average, the study found.

The data also revealed changing patterns among different age groups. The 26-35 age bracket remained the largest contributor to policy volumes across all three NCR markets. However, customers aged 36 and above accounted for a disproportionately larger share of premiums, suggesting a preference for higher-value insurance coverage as financial responsibilities increase.

In Delhi, this older cohort contributed nearly half of the total AP, while its contribution exceeded 50% in both Gurugram and Gautam Buddha Nagar.

Women, too, have emerged as an increasingly significant segment of the NCR life insurance market. Their contribution to AP stood at 35.7% in Delhi, 33.1% in Gurugram and 35.2% in Gautam Buddha Nagar in FY2024-25, indicating rising participation in financial protection and insurance decisions.

Product preferences showed another significant shift. Although endowment plans continued to account for the largest share of policy volumes, term insurance emerged as the leading premium-generating product across all three markets. Term insurance contributed 47.3% of AP in Delhi, 65.3% in Gurugram and 62% in Gautam Buddha Nagar during FY2024-25.

Unit-linked insurance plans (ULIPs) also recorded considerable momentum. Annualised premium collections through ULIPs grew 49.5% in Delhi, 128% in Gurugram and 56.1% in Gautam Buddha Nagar during the five-year period, reflecting demand for products combining life protection with long-term wealth creation.

Kamlesh Rao, Chairperson, Insurance Awareness Committee – Life (IAC-Life), attributed the NCR's performance to the changing economic profile of the region and sustained awareness efforts.

“While Delhi has traditionally been known as India’s administrative nerve centre, Gurugram and Gautam Buddha Nagar have emerged as new-economy corridors with younger, wealthier and financially aware populations concentrated in technology, financial services and logistics,” Rao said.

He added that the trends were not restricted to the NCR and reflected a broader increase in awareness of life insurance as a financial protection tool. According to the IIB analysis, sustained awareness initiatives, wider distribution networks and the efforts of insurers and other industry stakeholders have contributed to the growing adoption of life insurance.

The nationwide study analysed life insurance business across age, gender and occupational cohorts, examining policy purchases, annualised premiums and sum assured. It also found a broad trend towards higher life cover among Indian policyholders during the period under review.

The NCR figures, the study said, underline the growing role of life insurance in household financial security, particularly as consumers increasingly seek protection alongside long-term financial planning.

Tags : Life insurance, NCR, Gurugram, Noida, Delhi