Life Insurance

According to a Nuvama report, private sector growth picked up in November 2024 as the industry adapted to the changes in surrender value regulations

Finance Minister Nirmala Sitharaman on Monday said the cost of insurance to the policy holder is expected to come down if the GST Council recommends a reduction in GST rate on health and life insurance policies. In a written reply in the Lok Sabha, she said the GST Council in its September 9 meeting had recommended to constitute a Group of Ministers (GoM) to holistically look into the issues pertaining to GST on life insurance and health insurance. "...The matter of review of GST rates on life and health insurance is pending before the GoM. If a recommendation for a reduction in GST rate is made by the GST Council, the cost of insurance to the policy holder is expected to come down on account of reduction in GST," she said. Sitharaman said this while replying to the question on whether GST reduction on health insurance will be a step towards making healthcare more equitable. To a query on how the government will ensure that insurance companies pass on the benefits of any GST reduct

The discussions, in their early stages, aim to help LIC diversify beyond life insurance and tap into the growing health insurance demand

Insurers and experts are optimistic about revival in sales and premium growth, and they believe that it could also give a nudge to the insurtech sector in the country

Recommendations of the Group of Ministers (GoM) looking into issues pertaining to GST on life and health insurance will be placed before the GST Council when received, Parliament was informed on Monday. The issue of exempting/reducing GST on life and health insurance was placed before the GST Council in its 54th meeting on September 9, 2024. After detailed deliberations, the Council recommended constituting a GoM to holistically look into issues pertaining to GST on life and health insurance. Accordingly, a GoM was constituted under the Chairmanship of Samrat Chaudhary, Deputy Chief Minister of Bihar. First meeting of the GoM was held on October 19, 2024 at New Delhi where issues of GST rate on health and life insurance policies were discussed, Minister of State for Finance Pankaj Chaudhary said in a written reply to the Lok Sabha. "Recommendations of the GoM when received will be placed before the GST Council," he said. GST on health insurance services and pure term life insuranc

The gross written premium of Indian insurance has exceeded $130 billion and grown at a CAGR of 11 percent, in the three-year period FY20-23, outpacing its Asian counterparts

According to a Nuvama report, growth dipped in October 2024 due to the 'increased surrender value' regulation kicking in, but still held steady

Apart from commission structures, the insurance companies can also try other levers to absorb the impact

Life Insurance Corporation MD and CEO Siddhartha Mohanty on Friday said the state-owned company will take a call on buying a stake in a standalone health insurer in the current financial year. "The ground work is going on...search for suitable health insurance company is going on...we will finalise stake within this financial year," he said during post result media conference. Asked about the quantum of stake LIC will have in health insurance company, he said it would depend on various factors, including valuation. Once all the groundworks are done, he said, LIC would approach the board for its approval to foray into the health insurance segment. In February 2024, a parliamentary committee recommended the implementation of composite insurance licenses to reduce expenses and regulatory burdens for insurance providers. At present, life insurance companies are restricted to offering extended health insurance benefits. Enabling life insurance companies to furnish hospitalisation and

The net premium income rose 11.6% to 1.20 trillion rupees but the net benefits paid by the insurer to policyholders climbed 17% to 975.62 billion rupees during the quarter

West Bengal Chief Minister Mamata Banerjee on Saturday claimed that the Centre's likely decision to exempt GST on term life insurance premiums and premiums paid by senior citizens for health coverage is the result of sustained efforts by the state government. She said the central government appears to be "under pressure" to cut taxes to benefit the common people. An official stated that term life insurance policies and health insurance premiums for senior citizens are likely to be exempt from GST, as most members of a state ministerial panel favoured tax cuts to benefit the public. The GoM (Group of Ministers), which met on Saturday to decide on GST for health and life insurance premiums, chose to exempt GST on premiums paid by individuals, other than senior citizens, for health insurance coverage up to Rs 5 lakh. However, 18% GST will continue to be levied on health insurance coverage exceeding Rs 5 lakh. "Our sustained efforts appear to be paying dividends the Central government

Goods and services tax (GST) on term life insurance premiums, and premium paid by senior citizens for health cover is likely to be exempted from tax, an official said on Saturday. The GoM to decide on the GST rate on life and health insurance met on Saturday and decided to exempt GST on premiums paid for health insurance with coverage of Rs 5 lakh for individuals other than senior citizens. The final decision in this regard will be taken by the GST Council Officials premiums paid for health insurance coverage of above Rs 5 lakh will continue to attract 18 per cent GST. Currently, 18 per cent GST is levied on life insurance premiums paid for term policies and family floater policies. "GoM members are broadly on board for cutting my rates on insurance premiums. A final decision will be taken by the GST Council," an official said. Bihar Deputy Chief Minister Samrat Chaudhary said, "Every GoM member wants to give relief to people. Special focus be on senior citizens. We will submit a

Clawback, deferral, or reduction in payouts on the cards for distributors

She talks about the company's Q2 performance and the way forward

In H1, new business premiums of life companies was up 19% YoY

Life insurers recorded a 14 per cent rise in underwriting new business with a premium collection of Rs 35,020 crore in September. New business premiums stood at Rs 30,716 crore in same month a year ago. The new business premium collection in the first half of FY25 rose 19 per cent to Rs 1,89,214 crore from Rs 1,58,377 crore in the same period last year, as per the monthly data released by the industry body Life Insurance Council. Driven by a strong demand for enhanced insurance protection from individual consumers, new policy issuances too increased by 45.49 per cent on a year-on-year basis in the month, resulting in the addition of new 32,17,880 policies vis--vis 22,11,680 policies in the year-ago period, it said. According to data released by the Life Insurance Council, the life insurance industry saw individual single premiums growing 13 per cent to close at Rs 5,142 crore for September while year-to-date growth stood at 14.99 per cent. Meanwhile, Life Insurance Corporation (LI

Industry players had previously indicated that their margins will take a hit because of the revised norms

Most major life insurance companies have products in excess of 30. It was becoming difficult for the companies to revise all their products, in accordance with regulations by the deadline

LIC has appointed Boston Consulting Group as a consultant

The GST Council on Sunday constituted a 13-member Group of Ministers (GoM) to suggest GST rate on premiums of various health and life insurance products and submit its report by October 30. Bihar Deputy Chief Minister Samrat Choudhary is the convenor of the GoM. The members of the panel include members from Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Kerala, Andhra Pradesh, Goa, Gujarat, Meghalaya, Punjab, Tamil Nadu and Telangana. The 54th GST Council meeting on September 9 decided to set up a GoM to examine and review the present tax structure of GST on life and medical insurance. A final call by the Council on the taxation of insurance premiums is likely to be taken in the next meeting in November based on the GoM report. Currently, 18 per cent of Goods and Services Tax (GST) is levied on insurance premiums. The Terms of Reference (ToR) of the panel also include suggesting tax rate of health/medical insurance including individual, group, family floater and other medical ..