Major changes to NZ’s GST regime haven’t yet impacted premium renewals for both general and life insurance.

The NZ Government raised GST to 15% on October 1, having increased the tax on profits from life insurance sales on July 1.

Insurance Council of New Zealand CEO Chris Ryan says there hasn’t been any significant drop in general insurance sales as a result of the tax changes.

“In fact, we are seeing the opposite with an increase in general insurance due to the (Christchurch) earthquake,” he told insuranceNEWS.com.au.

A spokesman for AMP NZ told insuranceNEWS.com.au it’s too early to see if there will be a decline in life insurance premiums due to GST, but the July 1 changes did result in lower sales.

“Before July 1 we did see increased life insurance sales,” she said. “The pattern of buying life insurance has changed since increasing the tax on life sales.”