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Private Life Insurers See 20% APE Growth, Boosted by GST Reforms

Private life insurers have recorded a strong 20.2% year-on-year growth in individual Annualized Premium Equivalent (APE). Their market share in this segment has increased significantly to 72.4%, according to a Nuvama report. This growth is set against the backdrop of major GST reforms that have moved health and life insurance into a zero-tax bracket. Furthermore, the recent passage of the 'Sabka Bima Sabki Raksha' amendment bill aims to further open up the insurance sector and protect policyholder interests.

Key Points: Private Life Insurers Grow 20%, Market Share Hits 72.4%

  • 20.2% YoY APE growth for private insurers
  • Market share up 164bp to 72.4%
  • GST exemption moves insurance to 0% tax bracket
  • New insurance bill aims to expand ecosystem
2 min read

Private Life Insurers record 20% growth in individual APE: Report

Private life insurance APE grows over 20%. Market share rises to 72.4% as GST exemption and new laws reshape the sector.

"While in the long run GST exemption... will support demand, in the short term the companies will need to re-work pricing, processes and channel dynamics - Nuvama Report"

New Delhi, March 11

Private life insurers reported robust 20.2 per cent year-on-year growth in individual Annualized Premium Equivalent 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."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.

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.

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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Reader Comments

R
Rohit P
Great growth numbers, but I hope this expansion doesn't mean more misselling. With new players coming in, IRDAI needs to be extra vigilant. We've seen too many cases where agents push unsuitable policies for commissions.
A
Aditya G
The solvency ratio rule of 1.5 is a very strong safeguard. It's good to see the regulator is thinking about policyholder protection first. More competition should lead to better products and customer service. A win-win.
S
Sarah B
As an NRI, I'm watching this closely. If the Indian insurance market becomes more robust and transparent, it might make sense to shift some of my portfolio here. The growth is impressive.
K
Karthik V
While the GST removal is fantastic, the report itself says companies need to "re-work pricing". I really hope this doesn't become an excuse to increase premiums quietly in a year or two. Transparency is key.
M
Meera T
Finally! Insurance should be a right, not a luxury. This move will help so many in rural areas and the informal sector get coverage. Financial inclusion is moving in the right direction. 👏

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