Since I am from Insurance sector, one thing that I know is, all our Insurance companies whther they are LiC or private sector, they are actually not the insurance companies in th true s3nse of the word. They are actually savings banks. As the statistics goes, in case of LIC, if you check their total claims, out of that only 3% is death claims, while remaining 97% is Maturity claims, meaning, ppl are using these companies as savings banks for the investments and not for insurance. Once that is clear, then comes the financialization scheme in the picture, 10 crore Dmat accounts, ppl are investing heavily in mutual.funds, stocks, so they are less and less into savings and more and more into investments. So i see this like newspaper industry where sun is setting as far as savings aspect of life Insurance is considered. But Insurance aspect , i m not much enthusiastic as indian mentality is such that they want something in return if they invest any money. So pure term.insurance , where premium is anyway very less and it may not be a good profit making business model as it is, indians are not favourable. These are broad reasons for not investjng in life insurance companies.
For general insurance i am quite optimistic and had some exposure in ICICI lombard. I may think again about it…need to study it.
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