Home / Insurance / News /  Interest for term and health insurance nears all-time highs, post COVID

Google trends indicate a steep rise in interest for term and health insurance to near all-time high levels, says a report by HDFC Securities. Searches have been high from Haryana, Maharashtra, and Karnataka. We also observe increased interest in HDFC Life and SBI Life as companies. The report adds that a study of past pandemics such as SARS (CY 2002-04), and MERS (CY 2013-14) demonstrates increased insurance sales of health insurance during the pandemics and life insurance post the pandemics.

“Singapore also displayed lower persistency following the outbreak. We expect similar trends to play out in India while quantifying the same is difficult," says Madhukar Ladha, Institutional Research Analyst, HDFC Securities in the report.

Life insurance companies are expected to be key beneficiaries of term insurance sales, post the pandemic outbreak.

According to the report, the savings business is expected to be significantly affected as lower business activity impacts income and savings levels. This is also reflected in the low level of interest seen for ULIPs on google trends.

“Companies with a greater dependence on ULIPs are likely to be impacted significantly- IPRU/SBILIFE: 64.7/69.6% of individual APE. Additionally, companies with large credit protect portfolios will also see some declines as loan growth remains challenged- HDFC LIFE/IPRU: 17.1/8.0 % of total APE is a group," mentions Ladha in the report.

Search for “health insurance" and “COVID insurance" saw sharp rise, post COVID-19 outbreak as fear drives sales, says the report by HDFC Securities.

According to the report, 1QFY21 data indicates that protection sales have improved - the sum assured/premium ratio (x) has increased to 56.3 vs. 32.4 for FY20. This ratio was even higher in May20 at 61.0.

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