Insurance companies can provide cover to investors in tough times

Firms will gain if they do a balancing act between claims and income

The insurance sector can show growth during a recession but claims may also rise. A policy is like an option. An insurer accepts a premium upfront: The payout if the claim is triggered is many multiples of the premium, but if a claim is not triggered, the premium provides very cheap, or free money, to be deployed for a very long-term.

The pandemic has led to more than normal claims for life and health. But part of the scale of health and mortality claims may be offset since the umbrella Ayushman Bharat is mostly state-supported. The pandemic has also expanded