ICICI Prudential Life Insurance, which is the market leader in the universe of private sector life insurers continues to maintain its lead in unit-linked insurance plans (ULIPs).
In an analysis, brokerage house Nomura has, observed that while this reduces regulatory risk, the regulatory cap on charges for ULIPs implies a need for better persistency and cost control to achieve high New Business Profit (NBP) margins.
While persistency and costs are improving at the margin, value accretion will depend on further improvements on these metrics. Business margins, growth and renewals are dependent on equity markets given high ULIP dependence. With NBP margin being one of the lowest in the industry, it will need to increase share of protection business to improve margins,” the report added.
