Affordability to drive growth in the long run

The industry will largely pass on the entire benefit of GST rationalisation to policyholders, says Tapan Singhel, MD and CEO, Bajaj Allianz General Insurance. He tells Geeta Nair that in the short term, it is a wait-and-watch approach, while affordability will drive growth in the long run. Excerpts:

- Tapan Singhel, MD & CEO, Bajaj Allianz General Insurance

after September 22, and for upcoming renewals, this benefit will be directly passed on to policyholders. Most health policies are annual, so people will experience the benefit during renewals. This is a significant move as insurance becomes more affordable, and I believe it will encourage more families to come under the protection of health cover.

Health retail policies have been exempt from GST, but not the input tax credit. Insurers will have to incur additional costs, such as commissions. What will be the impact, and how will you offset these costs?