Life Insurers to benefit once again from low-base effect in Q1FY23

Analysts are more bullish on stocks of private insurers

For two consecutive fiscals, life insurance companies have experienced low-base effects in quarter 1 (Q1) due to the Covid-19 first and second wave effect. The financial year 2022-23 (Q1FY23) is likely to see growth given the base effect. Based on the IRDA data, SBI Life has had a standout quarter but other insurers have done reasonably well.

The low base was balanced off by an adverse environment with high inflation, elevated interest rates and volatile equity markets. While April and May benefitted from strong base effects, there was moderation in June 2022. Overall, ticket sizes declined 8 per cent year-on-year