Why Insurance Sector Stocks Are Gaining Momentum?
Insurance Stocks Are in Focus Again
– Growing awareness post-pandemic
– Increasing retail investor interest in financialization
Budget benefits and tax push driving demand
Recent Momentum Drivers
– Strong APE and VNB growth post-COVID
– Higher premium collections YoY across segments
IPOs like LIC & Digit adding sector visibility
Why This Trend Is Important for Investors
– Underpenetrated market = 2–3x growth runway
– Higher disposable incomes in Tier 2/3 cities
Digital adoption reduces cost & boosts margins
Risks to Track
– Temporary hype post-IPO events
– Regulatory changes can shift commission structures
Product mis-selling scandals hurt reputation
Investment Insights
– Focus on 2–3 year horizon
– Buy low, wait for re-rating