Question

How taxation and legislation impact positively and negatively on hollard insurance

Answer 1

Taxation and legislation have a positive and negative impact on the Hollard. For example as a result of the changes in legislation regarding the taxation of income protection policies:

1. From March premiums will no longer be tax deductible, but benefit payments will be tax free.

2. It also means that the clients may be unnecessarily over-insured and no longer receive tax relief on their premiums.

So at such a time in order get a positive benefit from this change and save itself from the negative impact of the taxation and legislation:

1. Hollard has to introduce new income protection benefits which will offer improvements in the type and number of income benefits.

2. It has to offer highly competitive premium rates.