India’s life insurance industry recorded a striking rebound in October 2025, with new business premiums rising by 12.1 % to ₹34,007 crore. The surge follows a sharp GST cut on individual life policies, helping drive growth in recurring-premium and non-single premium segments.
Growth returns as recurring business surges
According to a statement by CareEdge Ratings, quoting data from the Life Insurance Council and the Insurance Regulatory and Development Authority of India (IRDAI), the life insurance sector’s new business premium reached ₹34,007 crore in October, reflecting a 12.1 % year-on-year increase. This rebound comes after a 5.2% decline in August.
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The turnaround was driven largely by strong performance in the individual business, especially non-single premium policies, indicating healthy recurring inflows.
The premium growth was seen across private and public insurers, with the national carrier Life Insurance Corporation of India (LIC) retaining its dominant position while private players also posted double-digit growth.
CareEdge’s senior director, Sanjay Agarwal, said the relief from the recent GST cut on individual life and health insurance premiums “provided a timely boost to sales” and that the industry’s underlying business momentum has returned.
GST cut adds stimulus, outlook stays positive
The tax environment too changed significantly: from 22 September 2025, the GST on individual life and health insurance premiums was reduced to zero. The decision by the GST Council, led by Finance Minister Nirmala Sitharaman, exempted these premiums from the earlier 18 % tax.
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Looking ahead, CareEdge expects the life insurance industry to maintain its growth momentum in the medium term, supported by product innovation, stronger digital and distribution networks and a favourable regulatory environment, as per a PTI report.
