New Delhi, Sept. 30 -- Insurance intermediaries such as agents and brokers may see a hit to their commissions as insurers face pressure to pass on the full benefit of the recent GST (goods and services tax) cut to consumers.

From 22 September, GST on individual life and health insurance policies was reduced to zero from 18%, but the removal of input tax credits has increased insurers' costs.

Insurance companies used to claim input tax credit on things like commissions, office rent and brokerage, among others. This allowed them to reduce their overall GST liability on premiums by partly offsetting the GST paid to their suppliers against premiums received from customers.

According to industry experts, insurers are likely to trim payouts ...