Nirmala Sitharaman, the finance minister, stated in the Budget 2023 that insurance policies with premiums over ₹5 lahks will no longer be exempt from taxes. Health and term insurance are currently subject to an 18% GST charge. On the contrary, there is a good chance that the premium for term insurance won’t increase this year, which will be good news for insurance buyers. It might even fall further in some circumstances. life insurance companies are not likely to raise the cost of the premium. ET NOW has learned from sources that no hardening was observed in reinsurance contracts following their renewal in April. Reinsurance companies have not increased the term portfolios of insurance companies. Since the Covid-19 pandemic, the demand for term insurance has grown, and it is expected to continue to grow by up to 40% through 2022.

It might be viewed in some circumstances as a pass-on benefiting the customers. Reinsurance rates did not become more rigid in April 2023. Life insurance company term portfolios were not increased by reinsurers. In particular, the cost of term insurance increased by up to 40% after Covid until last year, but the pattern of claims has not changed or been put under pressure like it was during the pandemic. Term business requires a lot of capital and is supported by reinsurance. Prior to Covid-19, reinsurers had to increase rates because of an increase in claims.