According to the annual report of ICICI Prudential Life, the national life insurance industry may face short-term pressure as the coronavirus pandemic has cast doubt on the safety of the country’s mortality. In the absence of medical care, the number of cases in the second wave of pandemics has increased.
As stated in ICICI Prudential Life’s 2020-2021 annual report, there are concerns that the third wave may collapse across the country. The report added that the industry reported that new business premiums increased slightly by 3% and added that the industry will continue to save most of its savings due to the growing appeal of life insurance savings products, unique protection products, and annuity series among them. In the short term, given the increase in mortality during the epidemic, the insurance industry’s profitability may be concerning.
According to the paper, the insurance business is facing new risks relating to environmental, social challenges, with climate change posing the greatest threat. Aside from climate change, the research notes that there are new dangers connected with public health trends such as an increase in obesity-related illnesses and demographic shifts such as population urbanization and aging.
The pandemic poses many challenges for Indian life insurance companies. Stock prices and interest rates also dropped during the start of the epidemic. Insurance firms can employ the stocks of companies that are tied to units and participants. As a result, interest rate changes will have an impact on your liabilities and guarantee provisions.
“Consider life insurance as an important part of every employee’s financial planning. During this year, the epidemic has increased people’s demand for life insurance“, ICICI Prudential Life Insurance stated. The company’s total premium income for FY21 was 357,330 crores.
And the insurer also said that now they have a well-balanced product mix that insulates them better from market volatility, with unit-linked investment plans accounting for 48%, traditional savings products 31%, protection 16%, and group products 5%. Many experts say that professionals should consider having insurance to face uncertainties. We believe that the lessons learned from the epidemic will lead to a paradigm shift in how businesses operate.