SEBI order may not affect Insurers in short-run

SEBI-IndiaWhile the ban on the sale of ULIPs and the rift between the two regulators IRDA and SEBI is getting heated up by the day. Experts are of a view that this fight may not affect the insurance companies in the short-run. Simply because of the fact that this order came in April and the busiest quarter of January-March has been closed.

Notably, people tend to invest a lot more money in the financial products due to the offered tax-breaks and hence April is more of a lean period for the insurance companies.

It has been noted in the past almost 40-45% of the total insurance sales over the year happen in the last quarter and hence only 10% of the total sales come from the April-June quarter.

Deepak Yohannan, CEO, MyInsuranceClub. com confirmed the fact that the sales in the April quarter are the lowest and hence will nor make a big dent into the bottom lines of the insurers in the short-run.

Industry officials are keeping their fingers crossed that the issue is resolved before the busy season kicks off for the insurance companies.