GST cut boosts life insurance premiums: 12.1% growth in October
The surge in premiums is largely driven by robust performance in the individual segment, particularly non-single premium policies, reflecting a growing demand for recurring life insurance products.
- Nov 11, 2025,
- Updated Nov 11, 2025 4:57 PM IST
India's life insurance sector has seen a strong rebound, with new business premiums growing by 12.1 per cent year-on-year, reaching Rs 34,007 crore in October 2025, according to CareEdge Ratings. This marks a significant recovery from a 5.2 per cent decline in August 2025, indicating a positive trend for the industry.
The surge in premiums is largely driven by robust performance in the individual segment, particularly non-single premium policies, reflecting a growing demand for recurring life insurance products. The recent reduction in Goods and Services Tax (GST) on individual life insurance products has further helped sustain this momentum, with the GST rate on individual life and health insurance premiums being completely removed from September 22, 2025.
"India's life insurance industry recorded a strong rebound in October 2025. The recent reduction in GST on individual life and health insurance premiums provided a timely boost to sales," said Sanjay Agarwal, Senior Director of CareEdge Ratings. "The sector's underlying business momentum has returned to double-digit growth, indicating revival in demand."
Growth has been widespread across all segments of the life insurance market. While state-owned Life Insurance Corporation (LIC) maintained its dominant position, private insurers also experienced double-digit growth. Notably, premiums from individual non-single policies grew significantly, showcasing healthy recurring inflows. Group business also improved due to renewed institutional demand.
Looking ahead, CareEdge expects the industry to maintain its positive growth trajectory, supported by favourable regulations, innovative product offerings, and stronger distribution networks, including digital platforms. Agarwal added, "Over the medium term, CareEdge expects the industry to maintain this positive trajectory by supportive regulations, innovative product offerings and stronger distributing networks including digital."
(With inputs from PTI)
India's life insurance sector has seen a strong rebound, with new business premiums growing by 12.1 per cent year-on-year, reaching Rs 34,007 crore in October 2025, according to CareEdge Ratings. This marks a significant recovery from a 5.2 per cent decline in August 2025, indicating a positive trend for the industry.
The surge in premiums is largely driven by robust performance in the individual segment, particularly non-single premium policies, reflecting a growing demand for recurring life insurance products. The recent reduction in Goods and Services Tax (GST) on individual life insurance products has further helped sustain this momentum, with the GST rate on individual life and health insurance premiums being completely removed from September 22, 2025.
"India's life insurance industry recorded a strong rebound in October 2025. The recent reduction in GST on individual life and health insurance premiums provided a timely boost to sales," said Sanjay Agarwal, Senior Director of CareEdge Ratings. "The sector's underlying business momentum has returned to double-digit growth, indicating revival in demand."
Growth has been widespread across all segments of the life insurance market. While state-owned Life Insurance Corporation (LIC) maintained its dominant position, private insurers also experienced double-digit growth. Notably, premiums from individual non-single policies grew significantly, showcasing healthy recurring inflows. Group business also improved due to renewed institutional demand.
Looking ahead, CareEdge expects the industry to maintain its positive growth trajectory, supported by favourable regulations, innovative product offerings, and stronger distribution networks, including digital platforms. Agarwal added, "Over the medium term, CareEdge expects the industry to maintain this positive trajectory by supportive regulations, innovative product offerings and stronger distributing networks including digital."
(With inputs from PTI)