SBI Life Sees Marginal Hit from GST Cuts, Upbeat on Long-Term Gains

SBI Life Insurance Co. Ltd. on Thursday said the recent reduction in goods and services tax (GST) on individual life insurance policies will have only a marginal impact of less than 0.2% on its embedded value, a key metric to gauge the consolidated worth of shareholders’ interests.

The insurer said in an exchange filing that the changes in the indirect tax structure are expected to gradually stimulate demand and positively impact long-term value creation.

The GST Council on Wednesday approved an exemption for individual life insurance policies, effective September 22.

SBI Life welcomed the move, calling it a “profoundly meaningful step towards making insurance more affordable and ensuring financial security is accessible to all.” The company added that the reform aligns with the sector’s long-term vision of achieving ‘Insurance for All by 2047’.