GST reduction: New life insurance business premium touches Rs 34,007 cr in October

Kolkata, Nov 11 (PTI) India's life insurance sector continued its double digit growth for the second month in a row, with new business premium up by 12.1 per cent year-on-year touching Rs 34007 crore in October, 2025, CareEdge Ratings said on Tuesday, quoting data provided by Life Insurance Council and IRDAI.

This represents a significant rebound from 5.2 per cent decline in August 2025. The rise was mainly driven by strong performance in the individual segment, particularly non-single premium policies, indicating growing demand for recurring products.

In addition to the above, the recent reduction in GST on individual life insurance products helped sustain the overall growth momentum of the insurers.

According to the CareEdge statement, the growth is widespread across all segments. State-owned LIC maintained its leading position, while the private insurers also achieved double-digit growth.

Premiums from individual non-single policies grew significantly, indicating healthy recurring inflows, while group business improved due to renewed institutional demand.

Senior director of CareEdge Ratings Sanjay Agarwal said, "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. The sector's underlying business momentum has returned to double digit growth, indicating revival in demand".

"Over the medium term, CareEdge expects the industry to maintain this positive trajectory by supportive regulations, innovative products offerings and stronger distributing networks including digital," Agarwal said.

The previous GST rate of 18 per cent on individual life and health insurance premiums have been completely removed from September 22, 2025.

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