The Life Insurance Business: A structured Introduction

VP Expert Network
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@Mas24 @zygo23554

Few points from Q3FY22 conference calls of SBI LIFE INSURANCE, HDFC LIFE INSURANCE, ICICI PRUDENTIAL LIFE INSURANCE.

SBI LIFE:

  1. Average term life cover 40 to 50 Lakhs.
  2. All retained, no reinsurance, therefore unaffected by reinsurance price hike.
  3. They were already at a premium to other two, now at the same level after price hikes by other 2 players.

HDFC LIFE:

  1. Average term life cover 80L to 1 CR.
  2. Retention 40L rest reinsured, price hike in life term is 10 to 25 percent.

ICICI prudential life:

  1. Average life cover 80L to 1 CR.
  2. Retention is 1CR rest reinsured, therefore price hike is 0 to 10 percent.
  3. Management feels comfortable in keeping the large liability on book.

I am really not able to come to conclusion in the context of the extent of reinsurance, who is playing safer for the longer term.

It will be very informative if the members help in forming a relation between the risk and amount of reinsurance done by insurers. And is it better to have an higher average Cover or a lower average cover.

Please delete if not inappropriate for the thread. :pray:. I will post in a company specific thread.

Threads like these make me love valuepickr. Random people educating others selflessly. Hatts off.

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