Close to two decades back, private insurance companies started gaining prominence, there were two issues which got highlighted. First, the vast opportunity for insurance companies to tap into. Second, a voice of concern, about three things, capital, expertise and patience to run an insurance company. If one looks at the situation today, probably both have come true. There have been phases where headwinds took over the positive. Covid brought a lot of awareness about the need, but then also brought in a need for more capital. Then came changes in tax laws, which was another big blow. Given the fact that the overall size of the markets, a number of these problems will get resolved over a period of time. It is probably a sector which long term investors should have on their watchlist because the overall opportunity for the sector is very big.
