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regular-article-logo Wednesday, 15 October 2025

GST cut boosts insurance demand; ICICI Prudential, Lombard report strong Q2 growth

ICICI Prudential and ICICI Lombard note early demand pickup post-GST reform, expecting sustained growth in retail health and vehicle insurance segments through FY26

Our Special Correspondent Published 15.10.25, 05:27 AM
Anup Bagchi, MD and CEO, ICICI Prudential Life Insurance

Anup Bagchi, MD and CEO, ICICI Prudential Life Insurance Stock Photographer

Insurers are witnessing early signs of a pickup in demand following the recent GST exemption on life and general insurance policies.

Both ICICI Prudential Life Insurance and ICICI Lombard General Insurance, which announced their second-quarter results on Tuesday, expect the momentum to sustain through the second half of FY26.

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“With the GST reforms, we anticipate volumes to grow — early signs of which are already visible as we have seen increased traction from our customers, both in terms of leads and lead conversions,” said Amit Palta, chief product and distribution officer, ICICI Prudential Life Insurance, during the company’s Q2FY26 earnings call.

Anup Bagchi, MD and CEO, ICICI Prudential Life Insurance, said the reform would aid deeper insurance penetration, particularly in underserved markets. “As a significant insurance company in the country, we have ensured that the benefit of GST exemption is passed on to our customers,” he added.

ICICI Prudential reported an 18 per cent year-on-year growth in consolidated net profit at 296 crore for Q2FY26, compared with 251 crore in Q2FY25. Net premium income rose to 11,843 crore from 10,754 crore a year ago.

ICICI Lombard General Insurance also expects strong tailwinds from the GST rate exemption on health insurance and the reduction in automobile prices.

“Post September 2025, we have seen a significant uptick in the retail indemnity segment. We remain confident that more individuals and families will enter the health insurance fold and expand their coverage,” said Sanjeev Mantri, MD and CEO, ICICI Lombard General Insurance.

He added that the rationalisation of GST rates in the automobile sector has lowered the overall cost of vehicle ownership. “This will likely spur private mobility, enabling more Indians to own vehicles and encouraging upgrades to premium models,” he said.

Gopal Balachandran, CFO, ICICI Lombard, said that the demand momentum is promising. “We are witnessing increased sourcing of retail health policies. While the full impact will unfold over the next few quarters, we remain very optimistic about how this reform will play out,” he said.

The general insurer reported an 18 per cent rise in net profit at 819.54 crore for Q2FY26, against 693.95 crore last year.

Net premium income increased to 5,651.65 crore from 5,025.57 crore a year ago.

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