Covid-19 poses threat to insurer premiums, stocks

Indian stocks are at risk of losing vital support from insurers as premium collections of life insurance companies have steadily declined because of Covid-related disruptions.

Life insurance premium collections from new businesses dropped to just Rs 49,335.43 crore in the June quarter from Rs 64,565.5 crore in the March quarter, and Rs 69,000 crore in the December quarter, according to the Insurance Regulatory and Development Authority of India, or Irdai.

The fall in collections may prompt life insurers to deploy less capital into the equity markets this year, said market watchers.

Life insurers have historically been the biggest contributor among domestic institutional investments to the stock markets.

Source: Hindustan Times