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ICICI Pru Life expects COVID-19 claims to jump 1.5-2 times this fiscal

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ICICI Prudential Life Insurance has seen a slowdown in their May business premium, owing to the lockdown. Satyan Jambunathan, CFO at ICICI Prudential Life Insurance, discussed the COVID claim picture after the brutal second wave, and the outlook, as India begins to unlock.

ICICI Prudential Life Insurance has seen a slowdown in their May business premium, owing to the lockdown. Satyan Jambunathan, CFO at ICICI Prudential Life Insurance, discussed the COVID claim picture after the brutal second wave, and the outlook, as India begins to unlock.
“We are careful about the quality of risk selection but indeed, where we are comfortable with the risk, we continue to focus on that,” he said.
On retail business, the company has retail APE growth at 28 percent compared to an industry decline of 9 percent.
“Within the numbers for May, we saw fourth week as an improving trend over the first three weeks. To that extent, we were able to see some amount of recovery in the numbers in May. June is following the more positive last week’s trend for May, which leads us to believe that June can end up being meaningfully better than what we saw for the month of May,” he stated.
April-related claim numbers are consistent with the peak of first wave of COVID-19 in September, he said.
“As we go through this year, our expectation would be that claims on account of COVID-19 are likely to settle somewhere between 1.5 and 2 times the claims on account of COVID-19 that we saw in the last financial year,” he explained.
“In Q1 of 2020, we had negligible claims on account of COVID. Therefore, if we were to compare on a like-to-like basis, we should compare the quarter with the peak quarter of last year which were August, September, October. As we are looking at April, May, June, so far, we are in-line, we are not seeing an excess but you do tend to see some delays as far as claims are concerned. We will have a better picture on this in mid-July or late-July, when we come out with our assessment,” he shared.
“The pace of decline of the infection this time around, has been sharper than what we saw during the first wave,” he stated.
For the full interview, watch the accompanying video.

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SBI428.90 6.85 1.62
CompanyPriceChng%Chng
ICICI Bank676.65 20.85 3.18
ITC212.35 5.30 2.56
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CompanyPriceChng%Chng
ICICI Bank676.65 20.70 3.16
ITC212.40 5.40 2.61
Wipro599.15 14.95 2.56
SBI Life Insura1,050.45 24.45 2.38
SBI428.90 6.85 1.62
CompanyPriceChng%Chng
ICICI Bank676.65 20.85 3.18
ITC212.35 5.30 2.56
SBI429.15 7.15 1.69
HCL Tech994.25 15.65 1.60
Axis Bank755.25 8.75 1.17

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