Quick Summary
The recent GST exemption on life insurance premiums could limit profit growth for insurers in the July-September 2025 quarter, even as the industry experiences a surge in new business. WithITC no longer applicable on existing policies, analysts expect flat or modestly improved margins, despite highe
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited News Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
Life insurance new business premiums (NBP) rose by 14.8% year-on-year in September 2025, reaching Rs 40,206.7 crore, reversing a previous decline.
The GST exemption means insurers can no longer claim Input Tax Credit (ITC) on existing policies, which is expected to reduce new business margins by an estimated 165-400 basis points.
The group single-premium segment led the growth in September 2025, helping to offset declines seen in individual policies.
No, smaller or unlisted insurers could experience more pronounced effects from the absence of ITC.
Medium-to-long-term growth prospects remain positive, supported by private insurers expanding into new regions and launching digital platforms to increase penetration and accessibility.
CAclubindia
