Each life and non-life insurers reported strong premium progress in January, aided by a beneficial base impact and supported by the discount in items and providers tax (GST) on particular person life and medical 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 enterprise premiums (NBP) to ₹37,478.35 crore in January. Non-life insurers posted 15 per cent Y-o-Y progress, with premiums reaching ₹33,346.25 crore through the month.
In keeping with knowledge from the Life Insurance coverage Council, state-owned Life Insurance coverage Company of India (LIC) recorded 25.46 per cent Y-o-Y progress in NBP at ₹20,441.02 crore in January. Personal life insurers reported 17.24 per cent Y-o-Y progress, with premiums of ₹17,037.34 crore.
Throughout the month, particular person premiums rose 12.62 per cent Y-o-Y to ₹16,623.95 crore, whereas group enterprise premiums surged 40.6 per cent Y-o-Y to ₹ 20,854.4 crore.
“The life insurance coverage trade is witnessing progress on account of beneficial base results following the implementation of give up worth norms, in addition to the normalisation of the 1/n accounting norms for non-life insurers. As well as, for all times and retail well being insurers, the rationalisation of GST has additional supported progress,” mentioned Saurabh Bhalerao, affiliate director, BFSI, CareEdge Rankings.
In September, the GST Council rationalised GST on particular person life and medical insurance premiums to enhance affordability. Following the transfer, the insurance coverage sector has seen a restoration in progress after a number of muted months.
Individually, non-life insurers recorded 14.88 per cent Y-o-Y progress in January. Normal insurers reported 9.93 per cent Y-o-Y progress in premiums to ₹ 26,535.04 crore, whereas standalone medical insurance (SAHI) firms noticed a pointy 23.56 per cent Y-o-Y improve to ₹4,527.63 crore. Premiums of specialized insurers rose 86.40 per cent Y-o-Y to ₹2,283.58 crore through the month.
“For January 2026, trade gross direct premium earnings (GDPI) expanded 14.7 per cent Y-o-Y. SAHIs continued to publish strong progress 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 medical insurance. Personal sector insurers’ progress of 17 per cent Y-o-Y outpaced public sector progress, which declined 1.4 per cent,” analysts at Nuvama mentioned in a be aware.
Within the April–January interval of FY26, life insurance coverage 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, whereas personal insurers reported 14.33 per cent Y-o-Y progress to ₹1.50 trillion.
Over the identical interval, non-life insurers recorded 9.32 per cent Y-o-Y progress, with premiums of ₹ 2.83 trillion. Normal insurers reported 7.7 per cent Y-o-Y progress to ₹2.36 trillion, whereas standalone well being insurers posted 17.89 per cent Y-o-Y progress to ₹35,814.60 crore.
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