Archive · 12 Nov 2025
Axis Max Life Insurance Passes GST Cut Benefits to Consumers
The government lowered a special tax called GST on some insurance policies.
Axis Max Life Insurance has decided to give this entire tax saving directly to its customers.
Even though this tax change means the company might lose a little bit of money in the short term, they plan to make it back by being more efficient and negotiating better deals with their partners.
They are also focusing on selling more protection-style insurance plans, which are growing very fast.
The company is confident that despite these adjustments, they will still achieve their profit goals for the year.
Axis Max Life Insurance will pass the full GST rate cut benefit to consumers.
The insurer plans to offset the impact of GST changes through cost optimization and distributor negotiations.
The company reported a 27% year-on-year increase in Value of New Business (VNB) for H1 FY26.
Protection and annuity segments have shown strong growth for Axis Max Life Insurance.
Despite a potential short-term margin impact from non-availability of Input Tax Credit (ITC), full-year VNB margin guidance remains between 24-25%.
- Who
- Axis Max Life Insurance, its MD & CEO Sumit Madan, consumers, distributors, and vendors.
- What
- Axis Max Life Insurance is passing on the full benefit of the GST rate cut on insurance policies to consumers and plans to recoup the impact of the GST changes through internal cost-saving and negotiation strategies.
- When
- First half of fiscal year 2026 (H1 FY26) and ongoing.
- Where
- India.
- Why
- To maintain competitiveness, enhance consumer benefits, and offset the impact of the GST rate cut and non-availability of input tax credits.
Company's Strategy and Performance
Impact of GST Changes
VNB Growth and Margins
Company's Strategy and Performance
Axis Max Life Insurance achieved a 27% year-on-year increase in Value of New Business (VNB) to ₹974 crore in H1 FY26, with VNB margins improving by 220 basis points to 23.3%. This growth was driven by a strong product strategy, particularly in the protection segment, and growth in annuity and proprietary channels.
Impact of GST Changes
The non-availability of Input Tax Credits (ITC) due to GST exemption may have a short-term impact of around 0.6% on margins. The impact of GST rate cuts on the company's Embedded Value is approximately ₹268 crore, considered a one-time impact.
Consumer Benefit vs. Company Recoupment
Company's Strategy and Performance
Axis Max Life Insurance has decided to pass on the entire GST rate cut benefit to consumers. They plan to recoup the impact of GST through initiatives like negotiations with distributors, cost optimization, and product mix improvements.
Impact of GST Changes
The insurer is recovering the impact of GST through targeted actions such as product mix improvements, cost optimization, and ongoing negotiations with distributors and vendors. These initiatives are still in progress.
- Company
- Axis Max Life Insurance
- H1 FY26 VNB Growth
- 27%
- H1 FY26 VNB Margin
- 23.3%
- Impact of GST on Embedded Value
- ₹268 crore (one-time)
- Short-term Margin Impact from ITC Non-availability
- Approx. 0.6%
- Protection Segment Growth Rate (Term Insurance)
- Exceeding 60%
- Full Year VNB Margin Guidance
- 24-25%
Sources
GST cut boosts life insurance premiums: 12.1% growth in October
Gross Direct Premium of Non-life insurers remains flat in October
Net Direct Tax Collection Soars To Rs 12.9 Lakh Crore In November
Crisil’s Financial Conditions Index signals improvement in October, FPI flows boost sentiment
Policy easing, earnings revival anchor India’s market outlook
Credit card spends surge to five-year high of over ₹2 lakh crore in September: CareEdge Ratings
GST waiver pushes health cover sales by 20% in October
Retail Inflation Drops to Multi-Year Low of 0.25% in October
