GST cut lifts life insurance premium to record ₹4.6L cr

THE LIFE INSURANCE industry reported a threefold jump in growth, with new business premium (NBP) rising 16% year-on-year to a record $4.60 lakh crore in FY26.

- NARAYANAN V

The growth was primarily driven by the Goods and Services Tax (GST) rate cut from 18% to nil on individual policies, which triggered a strong demand, particularly for pure protection products like term insurance. The previous fiscal FY26 also marked a return to double-digit growth after two consecutive years of subdued expansion, when the industry had posted 5% and 2% growth, respectively.