In the near term, ensuing renewals until Sep 22, cancellations of the policies sold in the last one month (which are in the free look period), and the delay in fresh purchases until Sep 22 can pose some challenges from the cash flow perspective. General insurance players would benefit from the cut in GST rates on automobiles, which is expected to boost vehicle sales.
NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
The government has exempted retail health insurance and retail life insurance from GST as compared to a tax of 18% with input tax credit earlier. The change will be effective from September 22, 2025.
With ITC no longer available, the pass-through may not be complete. However, an improvement in retention for health insurance companies and persistency for life insurance companies can offset the impact.
Also, even if the insurance companies do not pass on the entire cut, we still see a meaningful reduction in premiums for policyholders and prospective customers, which will help drive demand as affordability improves.
In the near term, ensuing renewals until Sep 22, cancellations of the policies sold in the last one month (which are in the free look period), and the delay in fresh purchases until Sep 22 can pose some challenges from the cash flow perspective.
General insurance players would benefit from the cut in GST rates on automobiles, which is expected to boost vehicle sales.
We remain positive on the insurance space and our preferred picks are HDFC Life and Niva Bupa.
We expect the further tightening of F&O regulations to impact volumes in the near term. However, enhanced market infrastructure with improved transparency should bode well for rising retail participation, which will support the performance of market intermediaries.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
. Read more on Research Reports by NDTV Profit.