Private life insurance players reported 32% year-on-year (y-o-y) decline in individual annualised premium equivalent (APE) in May 2020, better than our expectations of about 60-70% decline in Q1. Traction in protection policies and gradual uptick in business through digital channels were the likely drivers.
The APE declined 32% year-on-year (y-o-y) in May 2020 for private players; down 40% y-o-y in April 2020. Even as business growth has declined sharply on the back of lockdown-related disruptions, higher focus on cash conservation by retail customers, lower Ulips due to weakness in capital markets, strong demand for protection policies and pick-up in sourcing through digital channels provided cushion.
