Summary of this article
New business premiums of insurers clock over 20 per cent rise in both life and non-life insurers in November
Waiver of goods and service tax rates and low base effect led to sharp rise in premiums over year
Premiums in the life insurance sector grew at over 20 per cent during the month of November 2025 compared to the previous year, aided by rationalisation in the Goods and Services Tax (GST) rates. A low base effect also helped sustain a strong growth in business premiums for life insurers, according to data from the Life Insurance Council
New business premiums for life insurers during November grew to Rs. 31,119.6 crore, up nearly 23 per cent from the same month in the previous year. However, when compared to October, total new business premiums fell over 8 per cent in November.
Individual single premiums during the month grew to Rs. 4,605.30 crore, up over 25 per cent from a year ago, and over 16 per cent from October. Group single premiums grew nearly 31 per cent over the year to Rs. 14,130.30 crore in November.
The GST rate rationalisation came into effect near the end of September. The rate rejig in GST did away with the earlier 18 per cent GST applicable on life insurance premiums. The removal of GST on individual life and health insurance policies led to a sharp rise in new business premiums in October.
Life Insurance Corporation (LIC) of India, India’s largest life insurer, registered a growth in insurance premiums to Rs. 15,869.7 crore in November, up 35 per cent from the previous year. Meanwhile, private insurers posted a combined growth of over 12 per cent y-o-y to Rs. 15,249.90 crore during November.
Non-life insurers, too, saw a firm demand, with the gross direct premium underwritten rising over 24 per cent in November from a year ago. The total gross premiums underwritten by non-life insurance companies stood at Rs 26,897.39 crore by the end of November, according to data from the General Insurance Council. A change in accounting norms by the Insurance Regulatory and Development Authority of India (Irdai), which came into effect in October 2024, had resulted in a slowdown in premiums underwritten earlier this year, according to insurers.
The waiver of GST rates also helped non-life insurers, resulting in the highest growth in premiums in November. General insurance companies recorded a 22.40 per cent growth in premiums y-o-y to Rs. 22,418.7 crore. Meanwhile, standalone health insurers saw a 36.10 per cent growth in premiums to Rs. 2,709.8 crore during the month.
“Growth is likely to be driven by the motor and crop segments. Private multi-line insurers reported a surge of 35.50 per cent y-o-y in gross direct premium income, outperforming public-sector multi-line insurers, which recorded a 0.40 per cent y-o-y decline. Standalone health insurance companies posted a growth of 35.80 per cent y-o-y,” Nuvama Research analyst said in a note.
