LIC eyes double-digit growth with new products amid retail business surge

Life Insurance Corporation (LIC) is set to introduce 3-4 new insurance products in the coming months, aiming to achieve double-digit growth in new business premium for the current fiscal year. According to LIC Chairperson Siddhartha Mohanty, the move is in response to a recent upswing in individual retail business.

Mohanty shared that the first product is scheduled for launch in early December and is anticipated to draw significant market attention. This upcoming offering will feature assured returns, ensuring policyholders receive 10 per cent of the sum assured for life after maturity. The Chairperson expressed confidence that this product would bring about market changes, particularly in light of the growing interest in understanding payment structures and long-term returns.

Enhanced policy features

Additionally, the new product will include features such as a loan facility and premature withdrawal. Mohanty highlighted that guaranteed return products provide benefits to both policyholders and shareholders, considering many shareholders also hold policies, resulting in a dual advantage.

To achieve the targeted double-digit growth in new business premium, LIC plans to introduce 2-3 more policies throughout the fiscal year. In the first half of the current financial year, LIC's new business premium income in the individual segment witnessed a 2.65 per cent growth, reaching Rs 25,184 crore compared to Rs 24,535 crore in the same period last year.

Dominant market presence

As of September 30, 2023, LIC maintains its market leadership in the life insurance business, holding an overall market share of 58.50 per cent in terms of first-year premium income, as per the Insurance Regulatory and Development Authority of India (IRDAI). During the first half of the fiscal year, LIC's market share stood at 40.35 per cent in individual business and 70.26 per cent in group business.

The Assets Under Management (AUM) of LIC increased to Rs 47,43,389 crore, reflecting a 10.47 per cent growth compared to the previous year. Furthermore, the overall expense ratio for the first half of the fiscal year improved to 15.14 per cent, down from 16.69 per cent in the same period last year.

(With PTI Inputs)