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