Life insurance companies see 5-10x surge in Covid claims in April
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Life insurance companies see 5-10x surge in Covid claims in April
TNN / Updated: Jun 14, 2021, 09:01 IST
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MUMBAI: The second wave of Covid has pushed up claims for life insurance companies by 5-10 times for April 2021. This follows 1.9 lakh Covid-related deaths since April 1, 2021, which is 17% higher than lives lost to the pandemic in the entire FY21.
“Life insurers, while making Covid reserves last year, assumed 50–100% higher Covid-related deaths for FY22. Our analysis shows that reserves made by them can cover 1.5–2x the Covid-related deaths in FY21,” said a report by Macquarie.
Market Movers: PVR, ICICI Prudential Life surge; 27 stocks give buy signals
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As many as 27 stocks listed on the National Stock Exchange gave a buy signal based on MACD indicators. They included Tata Motors, Tata Communications, ABB India, Whirlpool of India and Suven Pharmaceuticals.
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For the day, Nifty50 ended 0.4 per cent, or 63.1 points, lower at 14,296.4, while Sensex closed at 47,705.8, down 243.6 points or 0.5 per cent.
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Insurance major ICICI Prudential Life Insurance Company on Monday reported 65% decrease in consolidated net profit at Rs 63 crore for the quarter ending March 31, 2021. It was Rs 179 crore in the year-ago period. “The value of new business for the fourth quarter of 2020-21 grew by 26 per cent and stood at Rs 591 crore. This resulted in value of new business (VNB) of Rs 1,621 crore for 2020-21 with an expansion in VNB margin from 21.7 per cent in 2019-20 to 25.1 per cent in 2020-21,” said ICICI Prudential Life Insurance in a statement on Monday. For the quarter ended March 31, 2021, its net premium income increased by 13.4 per cent to Rs 11,879.28 crore against Rs 10,475.12 crore in the corresponding quarter in the previous fiscal.
Updated Feb 18, 2021 | 14:33 IST
Industry new business sum insured has risen 30x in the last 20 yrs. Aim to grow value of new business at 19-20% per annum over 3-4 years, says Satyan Jambunathan, CFO, ICICI Prudential Life Insurance. ICICI Prudential Life Insurance
Key Highlights
Expect growth to come back, growth rate of >15% in new biz premium APE is achievable in next few yrs
Higher protection mix led VNB margin rise to 26%, product diversification part of strategy
Oct-Nov has seen covid related claims come down, see normalisation in covid claims ahead
Mumbai: It’s been nearly two decades of opening up India insurance industry and overall experience has been reassuring. The Government hiked the FDI limit to 74 per cent from 49 per cent in the latest budget and this has been welcomed by the industry players as it will help attract more foreign capital in the industry. Despite 20 years, Life insurance premium as % of GDP stands at 2.8 per cent