Insurance Sector Booms After GST Cut: Premiums Jump 27%, Private Insurers Outperform LIC

India’s life insurance industry witnessed remarkable growth in November, with premium collections rising sharply after the government removed GST on several insurance products. The sector recorded a strong revival in demand, driven mainly by private insurers, who benefited even more than the country’s largest life insurance provider, LIC.

On September 22, 2025, the government reduced GST on life and health insurance premiums from 18% to zero. November was the first full month to reflect the real impact of this reform—and the results were nothing short of impressive. The removal of GST instantly made many insurance plans more affordable, prompting consumers to buy or upgrade their policies.

Premium Collections Surge 27% in November

According to industry data, the Retail Weighted Received Premium (RWRP) for the life insurance sector grew 27% year-on-year in November. This strong momentum indicates a clear rebound in consumer interest and reflects consistent performance among private insurance companies.

LIC, which holds the largest market share in the country, also recorded 27% premium growth due to a favourable base. However, private insurers collectively outpaced LIC with a growth rate of 28%, showing that the GST cut significantly boosted their sales.

The contrast is even sharper when viewed alongside October numbers, which showed mixed performance across insurers. The November jump confirms that the GST reform acted as a major catalyst for renewed demand.

SBI Life Continues to Lead With Strong Double-Digit Growth

Among private insurers, SBI Life delivered the most impressive performance. The company has been posting strong numbers for consecutive months—retail premiums grew 19% in October, 16% in September, and now a robust 27% growth in November. This consistent upward trend highlights strong distribution strength and rising consumer trust in the company’s products.

Other top performers include:

• SBI Life: 33% premium growth

• Max Life: 23% growth

• HDFC Life: 20% growth

• ICICI Prudential Life: 13% growth

The aggressive rise in premiums across private players shows that customers are increasingly comparing plans and choosing competitive products with better returns, flexibility, and lower costs after GST removal.

Bajaj Allianz, Tata AIA, and Aditya Birla Sun Life Deliver Standout Performance

Some insurers posted extraordinary performance in November:

• Bajaj Allianz Life led the market with a phenomenal 39% growth, the highest among major players.

• Tata AIA Life reported a strong 28% premium increase.

• Aditya Birla Sun Life matched that with 28% growth.

• Canara HSBC Life also performed well, posting 26% growth.

These companies have been expanding rapidly with innovative products, aggressive marketing, and a strong presence in both online and offline channels.

How LIC Is Performing Compared to Private Insurers

While LIC continues to dominate the market in terms of overall share, its growth is visibly lagging behind private companies.
So far this year:

• The overall life insurance industry has grown 7% in retail premium collections.

• Private insurers have grown at an impressive 12%.

• LIC, however, has reported a 2% decline in retail premiums during the same period.

Among individual players:

• Max Life recorded 18% growth.

• SBI Life and HDFC Life showed 11–12% growth.

• ICICI Prudential Life experienced a 6% decline, making it the only large private insurer to face negative growth.

GST Reform Proves a Game-Changer for the Insurance Sector

The removal of GST from insurance premiums has significantly revived customer interest by making policies more affordable and transparent. The resulting surge in sales reflects growing financial awareness, stronger distribution networks, and increasing trust in private insurers.

As demand continues to rise, analysts expect the life insurance industry to maintain this growth momentum in the coming months—especially if economic conditions remain stable and insurers continue to introduce customer-focused products.