Life insurance premiums jump 21.5% in Jan; non-life insurers up 15%
Both life and non-life insurers reported strong January premium growth, supported by a favourable base effect and the GST exemption on individual life and health insurance premiums
 "Life insurance premiums jump 21.5% in Jan; non-life insurers up 15%")
Both life and non-life insurers reported robust premium growth in January, aided by a favourable base effect and supported by the reduction in goods and services tax (GST) on individual life and health insurance premiums from 18 per cent to zero.
Life insurers reported a 21.58 per cent year-on-year (Y-o-Y) rise in new business premiums (NBP) to ₹37,478.35 crore in January. Non-life insurers posted 15 per cent Y-o-Y growth, with premiums reaching ₹33,346.25 crore during the month.
According to data from the Life Insurance Council, state-owned Life Insurance Corporation of India (LIC) recorded 25.46 per cent Y-o-Y growth in NBP at ₹20,441.02 crore in January. Private life insurers reported 17.24 per cent Y-o-Y growth, with premiums of ₹17,037.34 crore.
During the month, individual premiums rose 12.62 per cent Y-o-Y to ₹16,623.95 crore, while group business premiums surged 40.6 per cent Y-o-Y to ₹ 20,854.4 crore.
“The life insurance industry is witnessing growth due to favourable base effects following the implementation of surrender value norms, as well as the normalisation of the 1/n accounting norms for non-life insurers. In addition, for life and retail health insurers, the rationalisation of GST has further supported growth,” said Saurabh Bhalerao, associate director, BFSI, CareEdge Ratings.
In September, the GST Council rationalised GST on individual life and health insurance premiums to improve affordability. Following the move, the insurance sector has seen a recovery in growth after a few muted months.
Separately, non-life insurers recorded 14.88 per cent Y-o-Y growth in January. General insurers reported 9.93 per cent Y-o-Y growth in premiums to ₹ 26,535.04 crore, while standalone health insurance (SAHI) companies saw a sharp 23.56 per cent Y-o-Y increase to ₹4,527.63 crore. Premiums of specialised insurers rose 86.40 per cent Y-o-Y to ₹2,283.58 crore during the month.
“For January 2026, industry gross direct premium income (GDPI) expanded 14.7 per cent Y-o-Y. SAHIs continued to post robust growth of 23.7 per cent Y-o-Y, aided by the 1/n accounting base and a pickup in demand following GST exemption on retail health insurance. Private sector insurers’ growth of 17 per cent Y-o-Y outpaced public sector growth, which declined 1.4 per cent,” analysts at Nuvama said in a note.
In the April–January period of FY26, life insurance NBPs rose 9.32 per cent Y-o-Y to ₹3.48 trillion. LIC’s NBP grew 13.57 per cent Y-o-Yto ₹1.98 trillion, while private insurers reported 14.33 per cent Y-o-Y growth to ₹1.50 trillion.
Over the same period, non-life insurers recorded 9.32 per cent Y-o-Y growth, with premiums of ₹ 2.83 trillion. General insurers reported 7.7 per cent Y-o-Y growth to ₹2.36 trillion, while standalone health insurers posted 17.89 per cent Y-o-Y growth to ₹35,814.60 crore.