Evolving Life Insurance Markets: Exclusions, Regulation, and Investment Risk
Life insurance exclusion clauses spark social media debate
7 Jan 2026
A recent case in South Africa sparked debate after a funeral insurance provider refused to pay a claim because the deceased was involved in a criminal act at the time of death. Such exclusions are standard in life and funeral insurance, rooted in public policy principles that prevent people from benefiting from illegal acts. Insurers like Icebolethu, Liberty, and Sanlam explicitly deny coverage for deaths resulting from unlawful activities, including crime, rioting, or war. While legally enforceable, the industry could improve transparency, especially in complex situations where official reports may be disputed. These clauses reflect the long-standing legal principle that unlawful conduct cannot be insured or rewarded.
GST exemption may squeeze India’s life insurers’ FY 2026 margins
7 Jan 2026
India’s life insurance industry is expected to grow steadily at 8–11% CAGR through FY 2026–2027, driven by private-sector expansion, rising coverage, and regulatory support. Insurance penetration remains low at 2.8%, leaving room for further growth, while digital platforms like Bima Sugam aim to improve access and service. Recent regulatory changes, including 100% FDI and a full GST exemption on premiums, present mixed effects: growth and solvency support on one hand, but potential margin compression on the other. Insurers may respond with pricing or commission adjustments, while medium-term prospects remain stable despite risks from mortality, catastrophes, and market volatility.
US Life Insurers Face Rising Investment Risks: 2026 Outlook
6 Jan 2026
Fitch Ratings expects US life insurers’ investment portfolios to remain broadly stable in 2026, with core fixed-income assets dominating while allocations to private credit and alternative investments continue to grow. Rising exposure to less-liquid assets, private letter ratings, and complex funding structures adds incremental investment risk, though widespread rating pressure is not anticipated. Commercial real estate, especially office properties, remains under stress, but increased reserves and transaction activity help mitigate balance-sheet impact. Regulatory scrutiny is rising to ensure capital adequacy and transparency amid growing private credit and Level III asset allocations. Overall, insurers’ strong capital positions and disciplined asset-liability management provide resilience against market volatility and credit losses.
