Health insurance sector sees strong November growth on GST relief and rising demand: Nuvama

The health insurance sector posted one of its strongest monthly performances of the year in November 2025, with fresh data from Nuvama showing that the government’s GST exemption on retail health and life insurance has triggered a clear surge in demand across the country. Nuvama, a SEBI regulated brokerage and research firm, compiled the data.

According to the report, the industry’s gross direct premium income (GDPI) grew 24.1 percent year on year in November, reflecting a sharp improvement in customer interest after the GST rate on individual insurance policies was brought down to zero. The GST exemption, which took effect on 22 September 2025 , applies to all individual or retail health insurance policies , meaning policies that people buy on their own for themselves or their families, not employer-provided group plans.

Standalone health insurers (SAHIs) led the momentum with an impressive 35.8 percent YoY growth , supported both by the zero-GST rule and increased affordability. Nuvama noted that the removal of GST has made retail health policies significantly more appealing at a time when households are prioritising medical protection.

Private multi-line insurers also saw strong gains, reporting 35.5 percent GDPI growth , while public multi-line insurers slipped 0.4 percent , indicating weaker demand for public-sector offerings. The report adds that beyond health insurance, strong performance in motor and crop segments also contributed to November’s overall industry growth.

Year-to-date data shows a shift in market dynamics. Public multi-line insurers gained 39 basis points in market share, taking their total to 31 percent , while SAHIs added 70 basis points , reaching 12.2 percent . This growth came at the cost of private multi-line insurers, whose share dipped by 160 basis points , settling at 52.9 percent .

Among major companies, Bajaj Allianz General Insurance recorded the strongest surge as its GDPI grew 1.9 times year on year , improving its market share to 7.9 percent . ICICI Lombard registered 7.4 percent YoY growth , though its market share declined due to stiff competition in the motor segment. Star Health Insurance reported healthy growth of 19 percent , but still trailed other standalone health insurers.

The larger message in the report is clear: the GST exemption on retail health and life insurance has improved affordability and lifted consumer sentiment , pushing the sector firmly onto a growth path. However, the gains are uneven, private insurers are driving the momentum, while public insurers continue to lag in monthly performance.

With rising awareness, better pricing, and stronger retail demand, the insurance industry appears set for continued expansion, marking GST 2.0 as one of the most impactful policy shifts in recent years.