Question

How taxation and legislation impact positively and negatively on companies offering insurance

Answer 1

Tax assessment and legislation have a positive and negative effect on the insurance agencies. For instance because of the adjustments in legislation with respect to the tax assessment of wage protection strategies: 

1. From March premiums will never again be charge deductible, however, advantage installments will be tax-exempt. 

2. It likewise implies that the customers might be superfluously over-protected and never again get tax relief on their premiums. 

So at such a period all together get a positive advantage from this change and spare itself from the negative effect of the tax assessment and legislation: 

- Insurance organizations need to present new wage security benefits which will offer changes in the sort and number of pay benefits. 

- It brings to the table very focused premium rates.