Quick Summary
The Insurance Regulatory and Development Authority of India (IRDAI) has reported a strong surge in demand for life and retail health insurance following the recent GST rationalisation on insurance premiums. The regulator expects this momentum to significantly accelerate in the second half of the financial year (H2FY26). Speaking on Friday, IRDAI Member (Non-Life) highlighted that the GST reduction from 18% tozero on individual life and health insurance premiums has triggered "substantial growth
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FAQ :
The demand for life and retail health insurance has risen sharply due to the recent rationalisation of GST rates on insurance premiums, which were reduced from 18% to zero for individual life and health policies.
IRDAI expects the current momentum to significantly accelerate in the second half of the financial year (H2FY26) and believes this will help improve insurance penetration, aligning with the government's 'Insurance for All by 2047' vision.
IRDAI is considering fast-tracking approvals for new-age insurance models such as on-demand insurance, parametric insurance, and tech-led micro policies through its regulatory sandbox framework.
The biggest challenges in insurance distribution include avoiding mis-selling, reducing distribution and management costs, and building fast, innovation-led channels, especially for remote and underserved regions.
IRDAI is emphasising the need for quick and fair complaint resolution, technology-driven monitoring, and empathetic handling of customer disputes to build trust and loyalty.
According to IRDAI, the true measure of progress is not just the premium-to-GDP ratio, but how safely and confidently citizens can pursue their dreams due to accessible and affordable insurance protection.
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