Insurers expect more upgrades, new policy buys

Life and health insurers are preparing to implement the new goods and services tax (GST) rates starting Monday

- SUBRATA PANDA

Life and health insurers are preparing to implement the new goods and services tax (GST) rates starting Monday. According to industry insiders, companies plan to pass on the full reduction in GST to customers without changing product prices for now.

While some insurers are ready with their entire product lineup updated to reflect the new GST rates, others may initially roll out only their bestselling products until the rest are aligned with the revised tax structure.

Insurers also expect a slight uptick in demand beginning Monday, as many customers had delayed purchases in anticipation of the new GST rates.

“We will be ready with our key products, though some may take a bit more time. We are not revising product prices and will be passing on the full GST reduction to policyholders. System updates are underway, but we're ensuring that the core products, which account for the bulk of our sales, are ready from Day One,” said the chief executive officer (CEO) of a large private-sector life insurer.