Policybazaar Sees Record Surge in Traffic Post-GST Insurance Reforms

Policybazaar Sees Record Surge in Traffic Post-GST Insurance Reforms

The article reports that the recent Goods and Services Tax (GST) rate reforms on insurance premiums led to a record-breaking surge in consumer traffic and engagement on the online insurance platform, Policybazaar.

Key Impact Metrics

• Record Traffic: Policybazaar witnessed its highest-ever single-day traffic and conversion rates following the announcement of the GST rate cuts (which effectively waived the 18% GST on individual life and health insurance premiums).
• Affordability and Demand: The surge in traffic is attributed directly to the significant boost in affordability. By making premiums cheaper, the GST waiver immediately motivated a large number of prospective buyers who had previously deferred their purchase decisions due to cost concerns.
• Positive Market Sentiment: The rush confirms that consumers were quick to respond to the tax relief, translating the government’s fiscal policy directly into heightened consumer demand for insurance products.

Overall Significance

The response underscores the high price elasticity of demand for insurance in India. The GST reform is seen as a key step toward improving insurance penetration, with digital platforms like Policybazaar serving as the primary channel for consumers seeking the immediate benefit of lower premiums.