Kathmandu: ICICI Prudential Life Insurance has admitted that the profitability of the life insurance industry is uncertain given the increase in mortality and morbidity rates induced by the COVID-19 pandemic.
In its annual report for the financial year ended 31 March 2021 (FY2021), ICICI Prudential Life has mentioned that “Even more than a year after the pandemic first struck, there continues to be significant uncertainty regarding its absolute impact on mortality and morbidity experience.”
The life insurers are facing challenges to maintain their profitability as the interest rate has already declined and there’s fall in the equity price due to the uncertainties created by Covid-19. There is high possibilities of policy lapse/ surrender/paid-up decisions.
Business continuity was a key concern given the restrictions due to the pandemic, such as the lockdown. Further, as many employees are working from home in the current circumstances, there were concerns about a potentially higher exposure to cyber security issues.