InvestorQ : Is it true that the business of life insurers has started picking up again in the post COVID scenario?
Rutuja Nigam made post

Is it true that the business of life insurers has started picking up again in the post COVID scenario?

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6 months ago
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If there is one sector that is showing visible positive growth and recovery, it is the life insurance sector. In fact, life insurers like SBI Life and HDFC Life have shown commendable speed and progress in returning to pre-COVID levels of business activity.

According to data released by companies, there has been a recovery back to normal levels on multiple fronts giving evidence of a return to normalcy. Apart from the premium collections data, even the new business premiums and the premium equivalents of life insurers are all back to pre-COVID levels. That is quick work in one quarter.

Interestingly, these benefits accrued most to the insurers with a strong bancassurance channel as the sales were the quickest to pick up in such cases due to instant customer visibility so as to offer customers a value proposition immediately.

One reason that is being touted for this sharp growth in life insurance business is that the pandemic has highlighted the risks of not being insured. It has led to a surge in demand, according to insurance brokers, for life covers as well as health products.

In terms of specific companies, SBI Life, HDFC Life and Max Life with its bancassurance channel tie up with Axis Bank were the biggest beneficiaries of this trend. However, ICICI Pru Life was the underperformer in the life pack showing below par growth.


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