An unfortunate persistent trend for Life Insurance Corporation of India (LIC) has been the relentless loss in market share to private sector life insurers over the past decade. But India’s largest life insurer has not thrown in the towel yet.
In fact, so far in FY23, LIC has been quite successful in keeping its heft in market intact. As the chart shows, LIC’s market share has remained steady since April in the retail segment. In July, the insurance behemoth’s share was 37 percent of retail in terms of annualised premium equivalent (APE).
Of course, this is a far cry from above 50 percent it commanded several years ago. Even so, the life insurer has managed to keep market share around 40 percent for more than a year now.
Given that it is a listed entity which would intensify the focus on profitability, LIC is likely to pursue new business with new fervour. Its strength lies in group insurance where it still commands market share in excess of 60 percent. But retail is the most lucrative business and good for margins. LIC would need to amp its game here.
The first quarter of the fiscal year is seasonally a slow one for insurance business. The second half of FY23 would be critical for LIC to show its investors that the insurance whale has still growth left in it.
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