GST reduction: New life insurance business premium touches US$ 3.83 billion in October
- IBEF
- November 12, 2025
India’s life insurance sector sustained double-digit growth for the second consecutive month, with new business premiums rising 12.1% YoY to Rs. 34,007 crore (US$ 3.83 billion) in October 2025, according to CareEdge Ratings, citing data from the Life Insurance Corporation (LIC) and Insurance Regulatory and Development Authority of India (IRDAI). This marks a sharp rebound from the 5.2% decline recorded in August 2025, driven primarily by strong growth in the individual non-single premium segment, reflecting rising demand for recurring life insurance products. The recent removal of Goods and Services Tax (GST) on individual life insurance premiums also provided a significant boost, sustaining overall sector momentum. Both state-owned LIC and private insurers reported double-digit expansion, while group business benefited from renewed institutional demand.
CareEdge Ratings Senior Director, Mr. Sanjay Agarwal, said the removal of the 18% GST on individual life and health insurance premiums from September 22, 2025, has strengthened sales and revived market sentiment. He added that the industry’s positive trajectory is expected to continue, supported by favourable regulation, innovative product offerings, and expanding digital distribution channels. The sustained rise in recurring premium inflows underscores renewed household confidence in life insurance as a long-term financial protection tool, marking a return to healthy growth for the sector.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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