|
Insurance
10-Oct-23
|
|
|
|
|
|
|
LIC's market share fell to 58.5% till September from 68.2% in a year
|
|
|
|
Life Insurance Corporation of India (LIC)'s market shares in monthly new business premium (NBP) in the life insurance sector fell to 58.50% in September 2023 from 68.25% in September 2022 - a drop of 975 basis points - owing to shortcomings in the product and distribution side of business.
However, the market share has seen some improvement from 57.37% registered in August this year.
According to the monthly business data released by the Life Insurance Council for September 2023, LIC's NBP was Rs 92,462.62 crore until September 2023, compared to about Rs 1.25 trillion in the same period a year ago.
As a result, the Life Insurance industry's NBP fell nearly 13% in the first six months to about Rs 1.59 trillion.
Meanwhile, the share of private life insurers rose from 31.75% in September 2022 to 41.50% in September 2023.
Insurance analysts said that lower sales of participating products and lack of competitive non-participating products, along with the changes made to product features and pricing, have led to the decline in the market share of LIC.
Meanwhile, on the distribution side, higher dependence on agent-led networks for selling policies, instead of bancassurance and other alternative methods, is impeding growth in premium.
According to the Annual Report 2022-23, the state-owned life insurer had 16 participating products, 20 non-participating products, 11 group products, and eight riders. Of the new policies generated in this period, 94.39% of the policies were participating products and 5.61% of policies were non-participating products.
Analysts expect growth in life insurance premium to be driven mainly by the country's large section of young population who depend more on digital services to choose their insurance policies. Persisting reliance on traditional methods will affect the premium. In addition, the higher commission structure of agents also affects the profit margins of LIC.
|
|
Previous News |
Stock alert: LIC, HPCL, Adani Energy, NMDC, NALCO
(
Market Commentary
-
Stock Alert
28-May-24
08:45
)
|
|
LIC Q4 PAT rises 2% YoY to Rs 13,763 cr; declares dividend of Rs 6/ share
(
Hot Pursuit
-
28-May-24
10:06
)
|
|
Life Insurance Corporation of India standalone net profit rises 2.49% in the March 2024 quarter
(
Results
-
Announcements
28-May-24
07:39
)
|
|
LIC raises stake in Atul
(
Hot Pursuit
-
13-Dec-23
10:52
)
|
|
Life Insurance Corporation of India consolidated net profit rises 4.48% in the March 2024 quarter
(
Results
-
Announcements
28-May-24
07:40
)
|
|
LIC declines after receiving Rs 806-cr GST demand notice
(
Hot Pursuit
-
02-Jan-24
11:02
)
|
|
LIC launches its new unit linked life insurance policy 'Index Plus'
(
Insurance
-
06-Feb-24
10:56
)
|
|
Life Insurance Corporation of India announces change in senior management
(
Corporate News
-
18-Apr-24
18:52
)
|
|
Life Insurance Corporation of India standalone net profit declines 50.32% in the September 2023 quarter
(
Results
-
Announcements
11-Nov-23
07:47
)
|
|
Life insurers’ new business premium income raises 15.6% at Rs 60,214 crore in March 2024
(
Insurance
-
19-Apr-24
11:08
)
|
|
LIC hits 52-week high on getting one-time exemption to achieve 25% MPS in 10 yrs
(
Hot Pursuit
-
22-Dec-23
10:39
)
|
|
|
|
Other Stories |
|
|
|
|
|
|
|
|