Life insurers play tax-free interest arbitrage game to rev up business

While most insurance schemes aren't tax-free anymore, assured return products are among the few exceptions

Topics
Life insurers | tax | Insurance stocks

Hamsini Karthik 

November’s life insurance premium flow data came as a shocker after four consecutive months of promising growth. But here’s the interesting thing.

While the overall private life insurers’ premium inflows contracted by 7 per cent year-on-year, those of HDFC Life rose by 20.4 per cent and ICICI Prudential Life (I-Pru Life) and SBI Life witnessed 30.8 per cent and 5.7 per cent year-on-year decline in November. To understand the outperformance, one needs to deconstruct the composition of growth. After the initial months (April and May) of protection plans-led recovery, ...

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First Published: Thu, December 10 2020. 18:17 IST
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