Private life insurers see early demand surge after nil GST rollout

Private life insurers report strong post-GST growth as customers respond positively to the nil GST regime; term insurance demand surges 2.5x, say ICICI Prudential, HDFC Life

Large private sector life insurers are witnessing early signs of increased customer traction — both in terms of leads and conversion to sales — following the implementation of nil goods and services tax (GST).

 

Insurance companies have passed on the full benefit of GST cuts to consumers, and are not going to change pricing of the products.

 

Meanwhile, the insurance companies plan to use multiple levers, including renegotiating commissions with distributors and other operating expenses (opex) optimisation measures, to reduce the impact of withdrawal of input tax credit (ITC) following the implementation of nil GST rates.

 

In early September, the