Life insurance cos fall as India regulator proposes higher surrender value

Max Financial Services

14/12/2023 06:06

** India's insurance companies drop between 1%-4% on
country's insurance regulator proposing new surrender value
calculation for life insurance products
    ** Insurance Regulatory and Development Authority is
proposing higher surrender value on non-participating insurance
products, where companies don't share profits with policy
holders
    ** Policy holders are paid surrender value on termination or
surrender of policy ahead of maturity date
    ** HDFC Life Insurance Co  HDFL.NS , ICICI Prudential Life
Insurance Co  ICIR.NS , New India Assurance  THEE.NS , General
Insurance Corporation  GENA.NS  down between 1.5%-2%; Max
Financial Services  MAXI.NS  down 3.5% 
    ** IRDAI is proposing to increase surrender value of non-par
insurance products, which could likely affect the profitability
of companies who have more focus on these products - Jinay Gala,
Associate Director - India Ratings & Research




 (Reporting by Sethuraman NR in Bengaluru)
 ((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))