Government’s landmark GST reform fuels all-time high demand for Health and Term insurance on Policybazaar

Gurugram: Policybazaar, one of India’s largest online insurance platforms, has recorded its highest-ever traffic for health and term insurance following the Government’s landmark 0% GST announcement. The current average demand surge from the pre-GST baseline (until Sep '25) has surpassed even the spike last seen during the pandemic years. This highlights the kind of immediate impact that the policy change has had on pure protection segments. While term insurance has recorded a historic 2.5x surge after no-GST rule implementation, health insurance has clocked a phenomenal 2.2x increase in demand. The spike thereafter has sustained momentum, with health insurance demand up 1.7x and term insurance up 1.8x on the platform.

Over the years, India’s insurance penetration has remained low compared to the global coverage. The government’s monumental decision to bring down GST* to zero on term and health insurance will drive up adoption of these products which form the backbone of financial protection for families in India.

Speaking on the development, Sarbvir Singh, Joint Group CEO, PB Fintech, said, “The biggest win for us and the industry is that this announcement has successfully converted latent demand into active interest. In India, where financial shocks can wipe out years of savings, this timely move promises to strengthen the resilience of households. We, once again, wholeheartedly thank the Government and PM Modi for sending out the clear message that health and life insurance are critical products for the economy and hence, they are now GST exempt. It is a progressive reform that brings reassurance to countless families and encourages the industry to reach deeper in India with confidence.”

The core of Policybazaar’s strategy has always been focussed on solving for the social security needs of India’s middle class. In fact, 85% of the brand’s marketing spends over the years have gone into educating the masses regarding term and health insurance. Typically, the insurance market comprises three kinds of consumer segments: the active buyers, the procrastinators, and the fence-sitters. For active planners, this is the best time to increase coverage. For procrastinators, the lowered cost is finally prompting overdue purchases. And for fence-sitters, the GST relief has served as a decisive push to move further down the buying funnel.

The timing of the announcement also plays a cultural role. Navratri, considered an auspicious time for new beginnings and investments, has further accelerated consumer action on these products. The festive season usually fuels financial decisions and big-ticket purchases, and this year, with the GST relief, the momentum is even stronger.