The second wave of Covid-19 saw an increase among young Indians aged 25 to 35 who buy term insurance policies, according to industry sources, although official data indicates a negligible five percent growth for private insurers. and a 22 percent contraction for state-owned Life Insurance Corporation of India.
An agency report on Thursday quoted PolicyBazaar, one of the largest online insurance aggregators, as claiming that there was a 30 percent increase in insurance purchases by people aged 25-35 during April and May, at the peak of the Covid pandemic in India. Purchases of term insurance on the website of InsuranceDekho, an online insurance aggregator, increased 70 percent from March, the report said.
He quoted industry executives who claim that inquiries about insurance plans soared even after the second wave of infections subsided due to the possibility of a third wave and the slow start of the vaccination program.
However, another report cited official insurance regulator data indicating that life insurers took a major hit during the second wave of Covid-19. According to the report, on a two-year CAGR basis, private life insurers witnessed a 16 percent contraction in annualized retail premium equivalent and LIC saw a 13 percent contraction.
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