LIC gains 2% market share in new business premium in April-June quarter

•  In new business premium by LIC has gained 200 basis points market share.
•  According to Insurance Regulatory and Development Authority of India (Irdai) data, at the end of the June quarter, LIC’s market share in NBP stood at 65.42 per cent, compared to 63.25 per cent at the end of FY22. 
• Market share of LIC reduced from FY20 to FY21
•  LIC does not enjoy a similar market share on an annualised premium equivalent (APE) basis.
• Covid-related disruptions posed distribution challenges for LIC initially, given it has always been an agency-driven institution. However, it quickly invested in its digital infrastructure and managed to get its distribution network back on track.
• On  an APE basis, non-par is about 7 per cent of LIC’s portfolio and it plans to take it up to 12-15 per cent in 3-4 years. LIC is also looking to persify its distribution strategy by focusing more on the bancassurance channel.
• In the next five years, it wants bancassurance to contribute at least 15 per cent to the business. An email sent to LIC did not elicit a response.
• LIC’s shares closed at Rs 708.05 a piece on the BSE on Friday, up 1.42 per cent from the previous day’s close.