Covid-19 to hit life insurers for now, but may boost long term gains

Covid-19 is expected to result in improved awareness and importance of life insurance as a risk cover rather than a mere investment product

Although the covid19 spread and the subsequent lockdown imposed will adversely impact the life insurers business in the short term, but with likely a change in consumer behavior and rise in demand for pure protection products given the uncertaninties, the medium term to long term impact may turn out to be positive for them.

“Based on past regional experiences, it has been observed that such pandemics provide tailwinds to protection and guaranteed products. We foresee some shift towards such product forms which are healthy from a margin perspective too,” said Prashant Tripathy, managing director and chief executive officer at Max Life