Life insurance companies are in focus on the back of growth in life insurance premiums having slowed down in November. Akul Broachwala of IIFL Securities shares his views.
The total business premium for the private life insurance players has remained high at around 15 percent for the month of November, LIC has witnessed significant drag in their new business by almost 23 percent on such a high base and this has been the main reason for the decline in the overall business for the industry, said Broachwala.
"Our assessment is that LIC is witnessing competitive intensity from private bank insurance players like HDFC and Kotak Life, especially under individual single premium segment," he said. "Overall, in terms of total new business, LIC has been losing its market share and providing the excess room of benefit to the private players,”
Total new business premium growth has been around 10-15 percent, Broachwalasaid. In terms of individual, there has been a slight decline for HDFC Standard and ICICI Prudential,” he added.
“We are having ICICI Prudential, HDFC Life and SBI as our top picks in this sector,” Broachwala said.