Country's largest insurer LIC intends to raise its market share in non-participating insurance products as well as diversify the channel mix, a top company official said.
Having a market share of 65 per cent, the state-owned life insurer offers 17 individual participating products, 17 individual non-participating products, 11 group products and 7 products with rider benefits.
Non-participating life insurance products do not offer any bonuses or add-ons such as dividends to the policyholders. A pure term life insurance policy is non-participating product offering a fixed cover against payment of the policy premium. "We intend to increase our market share of non-par business as well as diversify the channel mix while ensuring that our agents stay as the main distribution pillars of our products," LIC chairman M R Kumar told shareholders in company's annual report for FY22.
With its agency count of 13.3 lakh, the insurer has a large section of them working in rural areas of the country. It has ensured a pan-India presence across various socioeconomic segments, Kumar said.
More than 95 per cent of LIC's individual business in terms of premium is sourced through agency force. It is less than 3 per cent through bancassurance channels. The insurer which got listed on the bourses during the year, reported an increase of nearly 40 per cent in its standalone net profit at Rs 4,043 crore in 2021-22.
It has recommended a dividend of Rs 1.50 per share subject to approval of shareholders. "Awareness of the need for insurance to meet life exigencies is at an all-time high. We will continue to explore and expand into newer areas keeping in mind the changing needs of our customers.
"Digital interventions, data analytics and process flow changes to leverage the potential of the changing times will be embarked upon to cater to the choices of the myriad segments with existing and emergent needs," the chairman said. He said the company believes its aggressive diversification by adding more non-par products suited to customer needs will yield the desired results.
"Within that framework, we intend to sharpen the focus on Bancassurance to steadily and considerably increasing its volume and thereby its share in our overall business. Our ties up with banks continues to be robust. "We intend to work with all partner banks and at the same time strengthen the IT processes between the banks and LIC."