Correction in SBI Life stock an opportunity for long-term investors

Industry is on the recovery trail; annual premium equivalent up 11 per cent in August versus the two-year average

The Life insurance sector has seen a sea-change in recent times. The advent of many private insurers has altered the landscape. Competition has led to loss of market share for LIC. There may also have been a change in attitude towards life insurance due to the pandemic. Rather than being seen as a tax-saving instrument, many are seeing it now as a necessary seat-belt.

While LIC is by far, the largest player, the private sector’s share is now close to 50 per cent, or over that, if we count SBI Life as a private player. There is fierce competition within