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LIC intends to increase market share in non-participating companies: Chairman
September 01,2022 21:18
Country's largest insurer LIC is looking to increase its market share in non-participating insurance products and diversify its channel mix, a top company official said.

With a market share of 65 percent, the state-owned life insurance company offers 17 individual participating products, 17 individual non-participating products, 11 group products and 7 products with rider benefits.

Non-participating life insurance products do not offer any bonuses or add-ons such as dividends to the policyholders. A pure term life insurance policy is a non-participating product that provides fixed cover against the payment of policy premium.

We intend to increase our market share of non-par business as well as diversify the channel mix while ensuring that our agents stay as the main distribution pillars of our products, LIC chairman M R Kumar told shareholders in company's annual report for FY22.

Its agency strength is 13.3 lakh, the insurer said, with a majority of them operating in rural areas of the country.

It has ensured a pan-India presence across various socioeconomic segments, Kumar said.

More than 95 per cent of LIC's individual business in terms of premium is derived from the agency force. It is less than 3 percent through bancassurance channels.

The listed insurance company has reported a nearly 40 per cent jump in its absolute net profit to Rs 4,043 crore in 2021-22.

It has recommended a dividend of Rs.1.50 per share subject to shareholders' approval.

Awareness of the need for insurance to meet life exigencies is at an all-time high. We will continue to explore and expand into newer areas keeping in mind the changing needs of our customers. Digital interventions, data analytics and process flow changes to leverage the potential of the changing times will be embarked upon to cater to the choices of the myriad segments with existing and emergent needs, the chairman said.

He said the company believes its aggressive diversification by adding more non-par products suited to customer needs will yield the desired results.

Within that framework, we intend to sharpen the focus on Bancassurance to steadily and considerably increasing its volume and thereby its share in our overall business. Our ties up with banks continues to be robust.

We intend to work with all partner banks and at the same time strengthen the IT processes between the banks and LIC, he said.
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