Insurance Industry Booms After GST Reforms

The insurance sector is experiencing significant growth following the GST change to exempt premiums. Irdai's Deepak Sood emphasized the need for greater insurance coverage and affordable policies. He highlighted the role of technology and digitization in lowering distribution costs and called for comprehensive state-level insurance initiatives.

The insurance industry is witnessing remarkable expansion since the recent modification in the Goods and Services Tax (GST), with premiums now carrying a zero tax rate. This reform positions insurance similarly to everyday essentials, encouraging deeper market penetration.

Deepak Sood of Irdai, speaking at an Assocham event, urged the insurance sector to pass on the benefits to consumers by making policies more accessible. Sood emphasized leveraging technology to reduce distribution costs while safeguarding against product misselling.

Moreover, Sood highlighted the importance of creating insurance products tailored for specific natural events and championed for all vehicles on Indian roads to be insured, addressing the financial burden of road accidents currently impacting the state budget.

(With inputs from agencies.)