India: Demand for life insurance among young adults soars after second Covid wave

Mumbai - Agencies report 30 per cent rise in insurance buying by those in 25-35 age group

By Web report

Published: Thu 17 Jun 2021, 8:33 AM

Last updated: Thu 17 Jun 2021, 8:51 AM

The second wave of Covid-19 has seen a surge among young Indians aged between 25 and 35 buying term insurance policies, according to industry sources, though official data indicates a negligible five per cent growth for private insurers and a contraction of 22 per cent for state-owned Life Insurance Corporation of India.

An agency report on Thursday quoted PolicyBazaar, one of the largest online insurance aggregator, claiming that there was a 30 per cent rise in insurance buying by those in the 25-35 age group during April and May at the peak of the Covid pandemic in India. Term insurance purchases on the website of InsuranceDekho, an online insurance aggregator, shot up by 70 per cent compared to March, the report said.

It cited industry executives claiming enquiries about insurance plans have rocketed even after the second wave infections have subsided because of the possibility of a third wave and the slow start to the vaccination programme.

However, another report quoted official data from the insurance regulator indicating that life insurance companies had suffered a big blow during the second Covid-19 wave. According to the report, on a two-year CAGR basis, private life insurers had witnessed a 16 per cent contraction in retail annualised premium equivalent and LIC saw a 13 per cent contraction.


More news from coronavirus