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India’s life insurance industry showed a steady growth with new business premiums rising 12.06 per cent to Rs 34,007 crore in October 2025 as against Rs 30,348 crore in October 2024, driven by the recent GST waiver on individual life and health insurance premiums providing a timely boost to sales, supporting renewed customer engagement.
However, the non-life insurance segment showed a lacklustre performance with gross premium underwritten remaining flat at Rs 29,617 crore in the month October as against Rs 29,597 crore a year ago, a rise of just 0.07 per cent. The poor show by the non-life segment came despite a jump in health insurance premium collection with standalone health insurers (SAHIs) reporting a 38.3 per cent rise in premium underwritten to Rs 3,738 crore in the wake of the GST cut.
The growth in the life segment was boosted by strong traction in the individual segment, particularly in non-single premium policies, reflecting an improving demand for non-single products. Life Insurance Corporation, the largest insurer, reported a growth 12.51 per cent in premium income in October to Rs 19,274 crore from Rs 17,131 crore, according to data available from insurance regulator IRDAI. Private players registered a growth of 11.47 per cent to Rs 14,732 crore during the month.
On the other hand, non-life insurers — excluding SAHIs — showed a growth of just 1.72 per cent to Rs 25,464 crore in the month of October. While public sector New India Assurance registered a 17.65 per cent growth, Bajaj General Insurance showed a decline of 50.51 per cent, according to data available from the General Insurance Council. Data indicates that other segments in the non-life sector lagged behind.
The government has announced a zero percent GST on all individual life insurance and all individual health insurance policies from September 22, 2025. The exemption applies only to individual policies — term life, ULIPs, endowment plans for individuals; health insurance policies including family-floater, senior citizen plans — and their reinsurance. Group insurance policies — group employer-sponsored — continue to attract GST at 18 per cent.
According to Sanjay Agarwal, Senior Director, CareEdge Ratings, the recent GST waiver on individual life and health insurance premiums provided a timely boost to sales, supporting renewed customer engagement. The sector’s (life segment) underlying business momentum has returned to healthy double-digit growth, indicating a revival in demand.
Over the medium term, CareEdge said it expects the industry to maintain this positive trajectory, underpinned by supportive regulations, innovative product offerings, expanding digital adoption, and stronger distribution networks. While growth in group single policies remained moderate due to the high base and regulatory adjustments, the overall outlook remains positive.
Meanwhile, public sector Agriculture Insurance Company showed an 82.27 per cent decline in gross premium underwritten to Rs 312 crore in October 2025 as against Rs 1,760 crore a year ago.
