The demand for insurance premium financing has risen sharply, in line with the overall increase in insurance uptake following the waiver of Goods and Services Tax (GST) on individual life and health insurance premiums, according Hanut Mehta, Co-founder and CEO, BimaPay Finsure. 

“The GST impact played a significant role in increasing the uptake of premium financing from the third quarter of the last fiscal year, and the retail health segment continues to account for nearly 85 per cent of the premium financing business,” Mehta told businessline

BimaPay Finsure, a fintech company engaged in the facilitation of credit for insurance premium payments, witnesses a sharp rise in its business volumes during FY26, driven by the maturity of insurance partnerships and higher adoption of long-tenure policies.

Its annual premium disbursements surged to ₹1,200 crore in FY26, marking a four-fold increase from ₹250-300 crore recorded in FY25. The company’s Assets Under Management (AUM) also expanded significantly, rising from ₹220 crore as on March 31, 2025, to ₹650 crore as on March 31, 2026. Nearly 85-90 per cent of the growth in AUM came from the retail health insurance segment.

The growth was supported by the expansion of existing insurance tie-ups, onboarding of new insurers, and increasing adoption of premium financing by sales managers and agents to promote higher-tenure and multi-year insurance policies.

 The company has expanded its partnerships and is currently live with eight general and health insurance companies, which dominate more than 50 percent of the retail health market. They are also live with two life insurance companies.

Future Plans

“We are targeting at least two-fold growth in the current financial year, with premium disbursements expected to touch ₹2,500-3,000 crore and AUM projected at around ₹1,500 crore,” Mehta said. 

The company, being profitable, is self-capitalized and self-sufficient, and they do not currently see a need to raise more money “Our operations are Pan India, offering a digital real-time product available to customers nationwide, provided they are buying or renewing a policy with one of the partnered insurance companies,’’ Mehta added.

On why premium financing demand is increasing, Mehta said it makes buying a multi-year policy more affordable, even with the added interest cost, because insurers offer a 10-15 percent discount for longer terms. For one-year policies, the company offers EMIs up to 11 months, which helps with affordability challenges for high-ticket policies like those over 50,000 or 60,000 rupees.

According to him, the financing cost is relatively low. “With a flat rate of about 9 to 10 percent per annum, meaning a 100-rupee policy with a 12-month EMI costs ₹109 total, which is not expensive considering the payment flexibility provided,’’ he added. 

Published on May 28, 2026