Indian Economy News

According to Mr. Siddhartha Mohanty, Chairman of Life Insurance Corporation (LIC), the organisation intends to launch 3-4 products for FY24 and targeting double digit growth

  • IBEF
  • November 24, 2023

Life Insurance Corporation (LIC) has planned 3–4 product launches in the coming months with the idea of achieving double-digit growth in new business in the current financial year.

Mr. Siddhartha Mohanty, Chairman of LIC, stated that the organisation projects to attain double-digit growth over the last year. The growth will be possible considering a recent trend that is showing an uptick in individual retail businesses. To make it even closer, there's the launch of some new attractive products.

These products will provide an assured return, and after maturity, the policyholders will get 10% of the sum assured lifelong. He further stated that the new product will disrupt the market as everybody wants to know about their payment and returns after 20-25 years. The facility for loan and premature withdrawal would also be a new feature of this product.

He further stated that these guaranteed return products are in the favour of policyholders and shareholders. LIC's new business premium income (individual) segment saw a 2.65% rise in the first half of the current financial year, reaching Rs. 25,184 crore (US$ 3.02 billion), compared to Rs. 24,535 crore (US$ 2.94 billion) at the same time last year.

The insurance premium that is due in the first policy year of a life insurance contract, or a single lump sum payment from the policyholder, is known as the "new business premium." It denotes fresh business that a life insurer has underwritten.

With an overall market share of 58.50% in the life insurance business, LIC is the market leader in terms of market share as determined by first-year premium income as per the Insurance Regulatory and Development Authority of India (IRDAI). For six months ended September 30, LIC had a market share of 40.35% in individual business and 70.26% in group business.

The insurance behemoth's Assets Under Management (AUM) rose by 10.47% to Rs. 47,43,389 crore (US$ 569.32 billion) on September 30, 2023, from Rs. 42,93,778 crore (US$ 515.36 billion) on the same date the previous year. During the first half of the current fiscal year, the overall expense ratio was 15.14%, down from 16.69% during the same period last year.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.