October Sees 12.1% Surge in New Life Insurance Premiums Post-GST Cut, ETCFO
India’s life insurance industry recorded a sharp revival in October 2025, with new business premiums rising 12.1% year-on-year to Rs 34,007 crore, marking the second straight month of double-digit expansion. The upturn reflects a combination of stronger demand for individual recurring-premium products, a favourable base effect, and the boost from the GST reduction on individual life policies, which helped sustain sales momentum across insurers.
The growth, though slightly below the 13.2% rise seen a year earlier, represents a strong rebound from the 5.2% contraction in August 2025. Premium collections were supported primarily by the individual segment, where non-single premium policies saw renewed traction as consumers shifted towards recurring-payment products. Private insurers continued to gain share in this segment, while LIC maintained its lead in single-premium and group business.
Non-single premiums grew 21.3% in October, compared with 9.7% a year earlier, as the impact of last year’s regulatory changes on surrender values normalised.
The drivers
The surge in individual non-single policies stood out, rising 62.8% in October after a steep decline in the same month last year. The sharp improvement was driven by a low base and a pick-up in recurring-premium demand, aided by the GST rate cut and broader product diversification.
While the year-to-date policy count remains marginally lower than last year, the October surge indicates a return of customer engagement and improving activity in individual protection and savings products.
Cumulative first-year premiums during the fiscal year to date grew at a moderate pace, led largely by private sector insurers. The broader momentum signals that the industry’s growth has normalised following the disruptions and shifts triggered by regulatory changes over the past year.
With digital distribution expanding and new platforms such as Bima Sugam expected to widen market access, insurers are positioned for sustained growth over the medium term.
