According to data released by the Life Insurance Council, the Life Insurance Corporation of India (LIC), a major player in the insurance industry, has experienced a significant drop in market share. As of September 2023, LIC's market share has decreased to 58.50%, from the 68.25% it held in September 2022. However, on a month-on-month basis, there has been a marginal improvement in market share.
LIC's market share slump
The decline in LIC's performance is evident in its new business premium, which stood at ₹18,126.32 crore in September 2023, compared to ₹24,991.26 crore in September 2022. Furthermore, the new business premiums for the period up to September 2023 have declined by 25.40% year-on-year.
Regarding the number of policies and schemes, LIC saw an increase of 14,81,455 policies month-on-month in September 2023, compared to 13,23,418 in September 2022. However, the total number of schemes and policies up to September 2023 has decreased by 3.56% year-on-year.
Reasons behind LIC's slump
The reasons behind LIC's slump are attributed to challenges on both the product and distribution fronts, as reported by Business Standard. Insurance analysts suggest that the decrease in LIC's market share can be attributed to reduced sales of certain products, limited competitive options beyond participating ones, and changes in product features and pricing.
The overall insurance sector also experienced a decline, with new business premiums totaling ₹30,716.52 crore in September 2023, down from ₹36,366.52 crore in September 2022. Year-to-date new premiums have seen a significant decrease of 12.97%.