 "Life Insurance, Insurance")
Some life insurers have seen corrections in stock prices due to concerns about potential Insurance Regulatory and Development Authority of India (IRDAI) regulations affecting bancassurance channels. Bancassurance is a significant contributor to annualised premium equivalent (APE).
If bancassurance share is capped, or if the parent bank’s share is capped, it could have a negative impact and either regulatory action would lead to valuation downgrades. Diversified insurers like ICICI Prudential Life Insurance or IPRU may be better positioned while those reliant on parent bancassurance, such as SBI Life and HDFC Life, would face higher risks of adverse regulation.
In the first
