Life Insurance Growth: India’s life insurance sector is currently growing at a strong pace. In October 2025, the sector recorded double-digit growth for the second consecutive month. New business premiums increased 12.1 percent year-on-year to ₹34,007 crore. This is considered a significant rebound for the industry after a 5.2 percent decline in August 2025. According to a report released by CareAge Ratings, this growth was primarily driven by strong demand for individual non-single premium policies, reflecting consumers’ growing interest in recurring insurance products.
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Insurers benefited
According to the report, this growth was not limited to a single sector but was observed equally across all categories. The leading public sector company, Life Insurance Corporation of India (LIC), maintained its strong position, while private insurance companies also recorded double-digit growth. Increasing demand for non-single premium policies has revitalized the individual insurance sector, while the group insurance segment also saw improved institutional investment.
Insurance Market Benefits from GST Reduction
The reduction in Goods and Services Tax (GST) on individual life and health insurance policies also boosted industry growth. The government completely removed the 18% GST on these policies from September 22, 2025. This made insurance policies cheaper and more accessible to the general public. Experts believe that this tax relief has significantly boosted sales.
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October 2025 Was a Special Year for the Industry
According to Sanjay Agarwal, Senior Director at CareEdge Ratings, October 2025 proved to be a turning point for the Indian life insurance industry. He said that this boom in the industry indicates a return of demand in the market. The digital network, the launch of new products, and increasing customer confidence have given the sector a strong direction.
The insurance industry’s momentum will increase. Sanjay Agarwal expressed hope that this growth will continue in the coming months. He said that the industry’s growth trend will remain positive due to supportive policies, new products, and a strong digital distribution network. Furthermore, a focus on increasing insurance penetration in rural and semi-urban areas could further accelerate this growth.