Question

how taxation and legislation impact positively (contribute to the company's success) and negatively can lead to failure)on the Hollard

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, from March premiums will no longer be tax deductible, but benefit payments will be tax free. 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 Hollard has to introduce new income protection benefits which will offer improvements in the type and number of income benefits. It has to offer highly competitive premium rates as well.