Edme Insurance Brokers Ltd., formerly Aditya Birla Insurance Brokers Ltd., is working closely with insurers to determine the pricing of products following the GST Council’s decision to reduce the GST on individual life and health insurance policies from 18% to 0%. According to Gaurav Gupta, Chief Operating Officer of Edme Insurance Brokers Ltd, the reduction in GST will impact insurers’ ability to avail input tax credit, which was previously used for brokerage, commission, and overhead purposes.
As a result, insurers will need to adjust their pricing to align with the absence of input tax credit. While the entire benefit of the GST cut may not be passed on to consumers, Gupta believes that insurers will aim to provide the best possible option to customers. The rate cut benefit is expected to be passed on to renewals, although there may be revisions in renewal terms.
Gupta predicts that insurers will take some time to come to a consensus on pricing, especially for new products. However, he expects the penetration of individual policies to increase, particularly from January when people start looking at buying policies for tax purposes. In the next one or two months, insurers are expected to sort out their pricing, leading to increased penetration of individual policies.
In related news, Edme Insurance Brokers Ltd has expanded its operations through the acquisition of UK-based UIB’s India operations and subsequent merger. According to Jonika Jain, Chief Human Resources Officer, the company has become the third-largest insurance broker in India, providing insurance and risk advisory services to businesses and individuals across commercial insurance, reinsurance, and personal coverage.
The company plans to increase its headcount from 500 to 1,000 in the next five years and expand its operations in the UAE, UK, and Singapore. With its growing presence, Edme Insurance Brokers Ltd is well-positioned to capitalize on the opportunities presented by the GST reduction and increasing demand for individual life and health insurance policies. As the insurance industry continues to evolve, Edme Insurance Brokers Ltd is poised to play a significant role in shaping the market and providing innovative solutions to its customers.