What is the investment flow of Insurance companies? Would they act as cushion against FII outflows?
Insurance companies are fundamentally long term investors. They are willing to take such a view as their liabilities are long term in nature. Insurance funds provide the much needed stability to markets. In situations such as the one we currently face, insurance funds will continue to build up their asset portfolios by buying fundamentally strong companies at low valuations for long-term benefits. INSURANCE COMPANIES PLAN MORE GUARANTEED PRODUCTS Anand Rawani, New Delhi, March 8, 2009 The Economic Times With the meltdown in financial markets spawning a trust deficit across traditional financial products, the insurance sector has scented an opportunity and is moving in for the kill with a plethora of so-called ‘guaranteed products’ launches. Following some early success in capital protection products, insurance companies are now either planning to roll out more such guaranteed return and protection plans, or spreading the benefit of capital return guarantee to existing products. “In thi
