Post GST cut, insurance enquiries surge 61% in last week of September

The waiver of the Good and Services Tax (GST) on individual life and health insurance appears to be generating a greater interest in buying the coverage.

The Centre has waived 18 per cent GST on sale of life and health insurance as part of the tax reforms aiming at rationalising the GST which came into effect from September 22, 2025.

According to insurers, there has been a notable increase in enquiries as well as sales in the first week of the new GST regime 

“There has been an enthusiastic response from individuals in the new GST regime ,’‘ Amit Chhabra, CBO – General Insurance, Policybazaar, the largest online insurance platform. 

According to Policybazaar data, there was a 61 per cent increase in enquiries and a 56 per cent increase in average daily leads between September 22 and September 28 this year, compared to the same period last year.

Even before the implementation of the zero GST on insurance, the expectation about its reduction also generated interest. “Between September 1 and September 22, 2025, Google impressions also rose by over 40 per cent month-on-month,’‘ Chhabra said. 

Policybazaar currently lists around 51 general and life insurance providers on its platform. “All insurers on our platform have passed on the benefit of GST cut to the policyholders,’‘ he added.

Though it will be too early to quantify the increase in actual sale of coverage , three general insurers and two life insurers said “some increase” was observed in sales as well. “The net impact of GST waiver on the purchase of policies can be known after the availability of full-month business data for October 2025. We expect a surge in the third and fourth quarters of the fiscal year, which will be the season for ensuring income tax gains,’‘ Chief Distribution officer of a public general insurance company said.

According to Narendra Bharindwal, President, Insurance Brokers Association of India (IBAI), the early signals in the market post-GST cut were “very encouraging.”

Since the GST exemption became effective only from 22nd September, the surge we are seeing now reflects just nine days of demand. The true impact will only be visible once the full month of October numbers are out, he said.

“The relief given by the GST waiver has immediately improved affordability. We are optimistic that this change will not just create a temporary spike but will lead to sustained growth in demand,’‘, Bharindwal added.

In FY25, life insurance industry’s new business premium stood at ₹3.97 lakh crore, posting a 5.13 per cent year-on-year growth, according to the Life Insurance Council’s data.

Health insurance premium, the largest segment in the non-life industry, grew 8.98 per cent in FY25 at ₹1.18 lakh crore.

Published on October 5, 2025