Mumbai, Oct. 16 -- HDFC Life Insurance Co. will reduce distributor commissions as the removal of the goods and services tax (GST) on certain retail term and health policies caused a loss of input tax credit even as it passed on lower tax benefit to consumers, according to a top executive.

"From a customer perspective, definitely the entire benefit is being passed on to customers," chief financial officer Niraj Shah told Mint. "...we are already in touch with all our distributors in terms of realigning some of the distribution commission. Those conversations are in progress, and I think we will execute all of them in the second half of the year."

GST changes impacted the second-largest private insurer's profitability and margins in the q...