NEW DELHI: Despite the global life insurance market contracting 3% due the pandemic, India's largest IPO-bound national insurer currently offers the highest return on equity at 82 percent amongst all its global peers, according to a report by rating agency Crisil.
The global life insurance market contracted 3.1 percent to $.79 trillion from $2.88 trillion in 2019 due to the pandemic. The advanced developed markets were hit harder as they contracted by 3.9 percent compared to emerging markets, which degrew just 30 bps. While the global life premium is expected to rebound from the pandemic shock, with annual growth of 3.8 per cent in 2021 and 4 per cent in 2022, the scope for LIC to grow is even higher given the massive $16.5 trillion protection gap in the country as of 2019, which was much higher compared with its Asian counterparts, said Crisil.
