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‘Volatile market fit for life insurance investment’

KOCHI: ICICI Prudential Life Insurance Company Limited is organising a series of investor educational programmes in Kerala as part of its strategy to instil confidence in investors.

Chief Investment Officer, ICICI Prudential, Puneet Nanda is of the opinion that the investors need to look at the long term perspectives and the insurance business offers opportunities for investment at any phase of the economy. Insurance business is tightly regulated in India. The solvency margin is high, he said.

The company registered 56 per cent increase in the business in the first half of the current year.

Equity markets are cyclic in nature, but the profit growth rate of companies matter in the long term.

India is the second fastest growing economy and the indications are that the GDP growth rate will be around 7 per cent which is almost double the rate witnessed a few years ago.

In recent years the profits had registered high growth, but it is still recording growth of over 10 per cent.

“I think the future is quite good,” he said. The investors need to stick to a discipline in order to withstand the volatility of the market. Nevertheless, he admitted that nobody is in a position to predict the trend in the equity market now.

The markets will stabilise in 6-12 months.

It will be sensible to invest in life insurance during volatile phase of the market, according to him. Kerala has 10 per cent share of the business of the company.

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