The GST Waiver Effect: Insurance Enquiries Skyrocket by 61%

Massive Surge in Consumer Interest
The Central government’s decision to waive the 18% GST on premiums for individual life and health insurance policies, effective September 22, 2025, has led to an immediate and “enthusiastic response” from consumers. Data from Policybazaar, a major online insurance platform, shows a 61% increase in enquiries and a 56% surge in average daily leads between September 22 and September 28, compared to the same period last year.
Improved Affordability Fuels Demand
The removal of GST immediately improved the affordability of these policies. Even the anticipation of the tax cut caused Google impressions for insurance searches to rise by over 40% month-on-month between September 1 and September 22. All insurers on the platform have reportedly passed the full tax benefit to policyholders.
Encouraging Early Market Signals
While it is too early to quantify the actual increase in policy sales, general and life insurers have observed “some increase.” Market experts, including the President of the Insurance Brokers Association of India (IBAI), view these early signals as “very encouraging,” expecting the full, sustained growth impact to become visible only after a full month’s business data for October 2025 is available.

Source :-thehindubusinessline