ICICI Prudential Life Insurance has invested in digital capabilities across the front and back end of the life insurance value chain to reduce its savings cost-to-premium ratio. The insurer reduced the ratio by 40 basis points (bps) in FY26.
“We continue to leverage economies of scale, technology and digital solutions to improve efficiencies, resulting in a reduction of 40 basis points (bps) in our savings cost-to-premium ratio, which stood at 12.1% in FY2026,” said Anup Bagchi, Managing Director & CEO, ICICI Prudential Life Insurance.
The company simplified customer journeys, deployed Artificial Intelligence (AI) in backend operations, and built API infrastructure for partner integrations to strengthen distribution.
Role of Technology in Reducing Savings Cost-to-Premium Ratio
“Over the last few years, we have focused on simplifying the customer journey through end-to-end digitalisation across buying, servicing and claims, which has helped reduce manual intervention and improve turnaround times,” said Sanjay Pore, Chief Digitisation Officer, ICICI Prudential Life Insurance.
A number of customer services are now digitised, reducing dependence on physical channels. “From a servicing standpoint, a large proportion of our interactions are now handled through self-service digital channels, supported by AI-led tools such as chatbots and voice-based assistants. This has enhanced customer experience while reducing reliance on physical touchpoints.
We have also leveraged automation and AI/ML across backend operations, including underwriting, document processing and renewals, which has improved efficiency, reduced errors and enabled us to handle higher volumes without a corresponding increase in costs.
Importantly, our API-led architecture and partner integrations have allowed us to scale distribution efficiently. Together, this combination of digital adoption, automation and scalable platforms has played a key role in driving operating efficiency and contributing to the reduction in our cost-to-premium ratio,” stated Pore.
ICICI Prudential Life Insurance’s robust performance in FY26
Notably, profit after tax registered a year-on-year growth of 34.6% to Rs 1,600 crore in FY2026. Commenting on the results, Anup Bagchi, MD & CEO, ICICI Prudential Life Insurance, said, “FY2026 marks a landmark year as we celebrate 25 years of serving over 20 crore lives covered with trust and commitment. The total value of life cover stood at Rs 46.11 lakh crore as of March 31, 2026, highlighting the strong trust our customers have placed in us over the years.”
Despite the challenging global macro environment this year, the company’s Profit After Tax (PAT) registered a growth of 34.6% year-on-year to Rs 1,600 crore. “Value of New Business (VNB) grew by 10.9% year-on-year to Rs 2,629 crore, with a margin of 24.7%,” Bagchi added.
