Insurance Growth Picks Up As GST Exemption Boosts Demand: Kotak
India’s insurance sector has seen a broad-based improvement in growth following the GST exemption, with individual annualised premium equivalent (APE), sum assured, retail health and motor insurance among the segments showing stronger momentum, according to Kotak Securities’ latest insurance sector research report.
The report’s analysis of March fiscal year-end data shows a pick-up in growth across key insurance segments in the first quarter of FY27, pointing to stronger activity across both life and general insurance categories.
Growth Broadens Across Insurance Segments
Kotak’s analysis tracks growth in individual APE, sum assured, retail health, motor insurance covering own-damage and third-party policies, and general insurance excluding motor and health.
The data indicates that growth strengthened across these categories in 1QFY27, following the exemption of insurance products from GST. The improvement extends beyond life insurance to health, motor and other general insurance segments.
Individual APE is a key measure of new business premiums for life insurers, while sum assured provides an indication of the level of insurance cover being generated through new policies.
Life Insurers See Mixed Distribution Trends
The report also compares the performance of different distribution channels across major life insurers, including individual agents, bank-led corporate agents, other corporate agents and brokers.
Data for companies including ICICI Prudential Life, Axis Max Life, SBI Life and Tata AIA shows significant variation in growth across distribution channels. For instance, Tata AIA recorded particularly strong growth across several channels, while SBI Life showed more moderate growth in some segments.
The variation highlights the continuing importance of distribution mix in determining new business growth for life insurers.
Retail Health And Motor Insurance Gain Momentum
The stronger growth in retail health and motor insurance comes as insurers continue to expand beyond traditional life products.
Kotak’s sector data specifically tracks motor insurance across own-damage and third-party policies, alongside retail health and general insurance excluding motor and health. The simultaneous improvement across these categories points to a broader recovery in insurance demand rather than growth being concentrated in a single product segment.
The report also examines the performance and valuation of listed Indian life insurers, providing comparisons across the sector for the March fiscal years 2026-29E.
GST Change Provides A Demand Catalyst
The report links the recent improvement in insurance-sector growth to the GST exemption, which has altered the tax treatment of insurance products.
The stronger trajectory in the first quarter of FY27 is reflected across individual APE, sum assured, retail health, motor and other general insurance segments.
The data comes against a backdrop of continued expansion in India’s insurance market, where insurers are seeking to increase penetration through multiple distribution channels and a wider range of products.
Kotak Securities’ report, dated September 24, 2026, provides sector-level analysis and company-wise data on growth, distribution and valuations. As with other brokerage research, its estimates and analysis represent the firm’s views and should be distinguished from reported industry data.
