ICICI Prudential Life Insurance has taken a significant step in enhancing customer convenience by becoming the first life insurer to enable premium payments directly through mobile banking applications. This innovative feature is powered by Banking Connect, a new interoperable payments platform developed by the National Payments Corporation of India (NPCI).

Streamlined Premium Payments

The new payment system offers several advantages for policyholders:

• Single Authentication: Users can make premium payments without entering separate internet banking login credentials, requiring only a single authentication step.
• Flexibility: The platform operates on shared digital infrastructure, connecting multiple banks and payment aggregators, allowing customers to use their preferred banking app.
• Simplified Process: The initiative is part of ICICI Prudential Life's digital roadmap to simplify policy servicing and enhance accessibility.

Implementation and Future Plans

This development marks a significant advancement in the digitization of insurance services, potentially setting a new standard for premium payment convenience in the life insurance sector. As the feature gains traction, it could lead to improved customer satisfaction and potentially higher retention rates for ICICI Prudential Life Insurance.

The introduction of Banking Connect for premium payments aligns with the broader trend of digital transformation in the financial services sector, reflecting the growing demand for seamless, user-friendly financial transactions across various platforms.

ICICI Prudential Life Insurance Company Limited has reported mixed financial results for the first half of fiscal year 2026 (H1-FY2026), showcasing resilience in profit growth despite challenges in premium collection.

Key Financial Highlights

Performance Analysis

ICICI Prudential Life demonstrated strong bottom-line growth with a 26% year-on-year increase in Profit After Tax, reaching ₹6.01 billion. This growth came despite a 4.1% decline in Annualized Premium Equivalent (APE) to ₹42.86 billion, which the company attributes to a high base effect from the previous year's 26.8% growth in H1.

The total premium collection grew by 9.2% year-on-year to ₹212.51 billion, indicating the company's ability to maintain overall premium growth despite challenges in new business acquisition.

Business Segment Performance

• Retail Protection: APE grew by 10.8% year-on-year
• New Business Sum Assured: Increased by 19.3% year-on-year
• Non-linked Savings Business: Grew by 15.6% year-on-year in H1-FY2026
• Linked Business: Declined by 10.7% year-on-year in H1-FY2026

The company's focus on protection and non-linked savings products appears to be yielding positive results, offsetting the decline in the linked business segment.

Operational Efficiency and Customer-Centric Approach

ICICI Prudential Life has shown improvements in operational efficiency and customer service:

• Cost to Premium Ratio: Reduced by 280 basis points to 19.2%
• 13-month Persistency Ratio: Improved to 85.3%
• Claim Settlement Ratio: Reached 99.3% with an average turnaround time of 1.1 days for non-investigated individual death claims

These metrics underscore the company's commitment to enhancing customer experience and operational efficiency.

Impact of GST Reforms

The recent GST reforms, which exempt life insurance from GST, are expected to have a significant impact on the industry. ICICI Prudential Life anticipates that these changes may drive increased demand and volume growth in coming quarters. However, the company notes that the disallowance of input tax credit could impact margins, potentially necessitating cost optimization initiatives and renegotiation of commission structures with distributors.

Management Commentary

Anup Bagchi, the company's spokesperson, stated, "We welcome the Government's landmark GST reforms aimed at making life insurance affordable and accessible. We believe these reforms will usher in growth and be value accretive for all the stakeholders, including our customers, our distributors and our Company."

Outlook

ICICI Prudential Life remains confident in its ability to leverage the opportunities presented by the GST reforms. The company plans to focus on product innovation, expand its distribution network, and maintain cost efficiencies to deliver sustainable business growth. Management expects the conducive regulatory environment to support deeper insurance penetration, especially in underserved markets.

As the life insurance sector adapts to these changes, ICICI Prudential Life appears well-positioned to capitalize on the potential market expansion while managing the short-term impacts on profitability.

Note: The financial results and statements in this article are based on the information provided for H1-FY2026 and do not reflect any subsequent developments or changes.