Insurers operating at higher costs likely to be affected by GST

PETALING JAYA: Insurers with higher operating costs are expected to see their bottom lines impacted with the implementation of the goods and services tax (GST) next year.

Those insurers with higher operating overheads, according to some analysts and industry observers, could experience margin squeeze due to the GST. Coupled with lower demand as a result of the slower economic growth from lower crude prices, this scenario is expected to further impact the sales of some insurance products.