'GST reduction to force repricing in insurance sector'

WELCOMING the GST rate reductions to 0% from 18% and making it affordable for the customers, Casparus JH Kromhout, CEO of Shriram Life, said on Tuesday the rate cuts will squeeze the margins for the companies and as it is not a high-margin industry.

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Kromhout said this will necessitate product repricing in the near future. Speaking to TNIE, Kromhut added, "The challenge for the industry is that we still have input tax and now we don't have output tax coming in which we can offset. Effectively, it becomes cost to the industry and it affects our margin. As an industry we will be able manage it over time. It is a competitive industry and there is no high margin, which necessitates to product repricing." He said the industry has been guided to pa