Similarly, private insurers NBP in the April-July period was down 6.44 per cent to Rs 20,620.56 crore compared to Rs 22,039.81 crore in the same period last year. LIC also followed a similar trend and witnessed a drop of 14 per cent to Rs 72,321.53 crore compared to Rs 82,146.46 crore. Experts believe that growth in the sector could potentially return in Q2 or Q3 and distribution channels could see significant realignment, with digital sales rising at the cost of individual agents and bancassurance.
Motilal Oswal Institutional Equities said, “We expect business growth to remain under pressure over the near term, especially for the savings business, given the reduced economic activity and consumption slowdown.
High volatility in the capital markets, in an uncertain environment and lower earnings visibility, should lead to tepid demand for unit-linked products. On the other hand, protection and annuity businesses are likely to do well, it added.
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