Private life insurers recorded a strong 20.2% YoY growth in individual APE, boosting their market share to 72.4%. While GST exemption is expected to support long-term demand, firms must navigate short-term pricing and process adjustments.
Private life insurers reported robust 20.2 per cent year-on-year (YoY) growth in individual Annualized Premium Equivalent (APE) as the industry continues to see significant expansion. According to a Nuvama report, for FY26TD, the market share for private insurers in the individual APE segment surged 164bp YoY to 72.4 per cent.
GST Reforms and Market Outlook
“While in the long run GST exemption on individual businesses will support demand, in the short term the companies will need to re-work pricing, processes and channel dynamics in order to mitigate any adverse impact on the margin,” the report stated.
Earlier in September 2025, the landmark next-generation GST reforms that were announced included significant relief to citizens in the healthcare and insurance sectors. Until then, the insurance sector attracted 18 per cent GST. With the new reform, they have been moved to the zero-tax bracket, making health and life insurance more affordable and accessible to a wider section of society.
Legislative Reforms and Sector Expansion
Parliament, in December of 2025, passed the ‘Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025’, with Finance Minister Nirmala Sitharaman assuring members that opening up the sector will attract new insurers, intermediaries and allied service providers, expanding the overall insurance ecosystem and creating net employment. The Rajya Sabha passed the bill after a reply from the Finance Minister. The Lok Sabha passed it.
Regulatory Safeguards Emphasized
In her reply, Sitharaman said that IRDAI had prescribed that all insurance companies have to maintain a minimum solvency ratio of 1.5, which means the assets should be 1.5 times of the liabilities. “Also, the companies have to make provisions for all ‘Incurred but not reported’ and ‘Incurred but not enough reported’ liabilities. The profits are calculated only after providing for these liabilities. These norms provide enough safeguards for protecting the interests of policyholders,” she said. (ANI)
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