Life vs. General Insurance – Which Stocks Are Better?

Life or General – Where Should You Bet?

– Life = long-term policies & compounding cash flows
– General = high churn but quick pricing flexibility
– Business model & volatility differ greatly

Key Differences Between the Two

– Life: Long tenure, higher persistency, slower churn
– General: Short-term cover (motor, fire, health)
– Life earns from float; general thrives on volume

Stock-Specific Strengths

– Life: High embedded value growth (HDFC, SBI Life)
– General: Fast re-pricing + health/motor demand (ICICI Lombard)
– Tech integration gaining traction in both spaces

Segment-Specific Risks

– Life: Sensitive to equity markets & long-term persistency
– General: Prone to spikes in claim ratios
– Regulation affects product flexibility in both

Investment Insights

– Diversify across both for stability + growth
– Life = long-term compounding; General = short-term cyclical plays
– Track combined ratio (general) and VNB margin (life)