Budget 2023: What Insurtech sector is expecting from government
2 min read . Updated: 31 Jan 2023, 07:40 PM IST
Premium- The experts from Insurtech industry are calling it the golden decade for the sector
Insurtech Industry is the booming industry and the experts from the sector believes that in the upcoming Union Budget, the government must make some bold moves by introducing certain incentives.
Mukul Kanchan, VP and Head of Finance , Plum calls it the golden decade for the Insurtechs. “I believe this is a golden decade for the Insurtechs. The way Fintechs have transformed the digital payment and availability of credit to the masses, similarly Insurtechs are set to democratize access to insurance. Technology driven insurance intermediaries will make insurance products more accessible to the customers," Kanchan said.
“It will also make business with low-income customers more profitable for insurance companies by reducing the cost-to-sell and cost-to-serve of policies. Therefore, Insurtechs are a crucial leg in driving penetration and adoption of insurance in India. One of the faster ways to achieve this – particularly life and health – is to encourage MSMEs and corporates to buy such benefits for their employees and bring them under the insurance net," he added.
“We expect the government to make bold moves by introducing certain incentives. One of the long-standing demands of the insurance industry is the reduction of the 18% GST rate from health and life insurance products to make them more affordable. Additionally, increasing the limit to claim tax deductions under section 80C and 80D would further increase the adoption of life and health insurance products," Kanchan said.
Mr. Pradeep Gupta, Co-founder & Vice Chairman, Anand Rathi Group wants government to manage inflation and keep a check on fiscal deficit targets.
“The expectations from the budget is mainly focused on growth, maintaining the fiscal deficit target and keeping inflation in check. One of the key growth inducers for the next year would be public investments and fiscal consolidation, going hand in hand," Gupta said.
“There are expectations of the fiscal deficit target of 6.4% of GDP to not only be met but to lower the next year target owing to the ample GST collection. Market expectations are of a fiscal target of less than 6%, this will help in accelerating growth and aid the central government in some fiscal pressure. What the markets don’t want to witness would be unpleasant surprises on the tax front, especially as there are a host of other things for investors to worry about. Along with the manufacturing sector, I believe that there can be positive policies and support to the service sector which can help further boost the economy. PLI scheme expectations in the private sector to further improve employment can be considered along with an additional focus towards allocation in the defence sector and capital-intensive sectors. Focus on rural economy and policies around the same can also be expected along with subsidies," Gupta added.
