Private Insurers See Q3 Volume Surge Post-GST Exemption, But Margins Face Pressure

• Private life insurers reported 21% YoY volume growth in Oct-Nov 2025, driven by GST exemption on premiums.
• PL Capital expects momentum to continue in Q3, fueled by retail protection and non-participating business.
• Margins are likely to face 200-300 basis point pressure in FY26 due to Input Tax Credit (ITC) loss.
• Companies show divergent trends: Axis Max Life outperformed, HDFC Life saw steady growth, while ICICI Prudential Life declined.
• Insurers plan to offset margin impact through cost controls, commission adjustments, and product repricing.

Why It Matters: GST exemption boosts private life insurer volumes in Q3, but margin pressure looms due to ITC loss.