Page 12 - Insurance Times March 2022

The LIC chairman said that the Market share elsewhere, the Chinese conventional and health policies is also
millennial segment was seeking a supe- market is dominated by Ping An Insur- available. In the case of micro insurance
rior experience and this called for in- ance and China Life Insurance, with 21 policies, 100 per cent waiver in late fees
surers to reimagine their journey & pro- per cent (GWP at USD 74.13 billion) and is available.
cess, and partnering insuretech com- 20 per cent (USD 69.65 billion). The larg-
panies to achieve this was an opportu- est Japanese player Nippon Life's mar- LIC AUM rose Rs. 1 trillion
nity. "Insurers need to explore partner- ket share is only 16.2 per cent (USD from March-Sept '21
ships with large digital platforms, cre- 39.84 billion).
ating win-win models," said Kumar. This However, nowhere else in the world is LIC of India's assets under management
(AUM) increased to Rs 38 trillion as of
would be possible by insurance compa- the market share gap between the larg- September 2021, compared with Rs 37
nies deploying a sales force of bionic est and the second largest as stark as trillion as of March 2021, said sources
agents by equipping agents with next- here, with the second-largest player SBI in the know. Its AUM is almost 3x the
generation tools. Life having only 8 per cent market share AUM of all the private life insurers in
compared to LIC's 64.1 per cent fiscal the country and over 15x more than the
LIC third largest, but gives 2021, says the report.
AUM of the second largest life insurer,
highest RoE of 82%: CRISIL SBI Life, as of September 2021.
LIC launches special revival
LIC is not only the world's largest when SBI Life's AUM was approximately Rs
it comes to home-market share with campaign for lapsed poli- 2.4 trillion as of September 2021, said
over 64.1 per cent of the total gross cies sources. Also, as of September 2021,
written premium as of 2020 but also 61.67 per cent of LIC's AUM was held in
Life Insurance Corporation of India (LIC)
the one that offers the highest return participating policies, 37 per cent in
on equity at 82 per cent, apart from has announced a special revival cam- non-participating policyholder invest-
being the third-largest in terms of life paign for individual lapsed policies from ments, 1.15 per cent in unit-linked poli-
insurance premium, says a Crisil report. February 7 to March 25. cies, and 0.16 per cent in shareholder's
This is the second such campaign for investment.
While for LIC the market share has been
steadily declining--down from 100 per revival of lapsed policies that it has LIC Housing or IDBI has to
cent in the pre-2000 era to 71.8 per launched this fiscal year.
cent in 2016 and further down to 64.1 "In view of the prevailing circum- stop home loan biz by Nov
per cent in 2020, for SBI Life, which is stances, concessions are being offered next year
the second-largest in the country, the in late fee for other than term assur- With Life Insurance Corporation (LIC)
same was only 5 per cent in 2016 and 8 ance and high risk plans, depending on becoming a parent company of both IDBI
per cent in 2020, Crisil said in a report the total premiums paid," LIC said in a Bank and LIC Housing Finance, either of
prepared in November 2021 which is statement, adding that there are no the subsidiaries will have to wind down
not yet made publicly available. concessions on medical requirements.
its home loan business in the next 20
"Eligible health and micro insurance
At 64.1 per cent or with a gross written months, according to the Reserve Bank
premium (GWP) of USD 56.405 billion, plans also qualify for the concession in of India's (RBI's) condition while approv-
LIC's market share is unparalleled glo- late fee," it further said. ing the insurance behemoth's takeover
bally, with no other life insurer any- Policies of specific eligible plans can be of the erstwhile public sector lender.
where else enjoying such a high market revived within five years from date of In its approval letter dated November
share, says the report. the first unpaid premium. 2, 2018, for the acquisition of additional

It attributed this to the Corporation's "While the current Covid-19 pandemic shares by LIC in IDBI Bank, the banking
enormous agent network of 1.35 mil- scenario has emphasised the need for regulator said either of LIC's associates
lion individual agents as of March 2021 mortality protection, this campaign is would have to cease its housing finance
accounting for 55 per cent of the total a good opportunity for LIC's policyhold- business within five years of the date of
agent network in the country and was ers to revive their policies, restore life the approval letter.
7.2 times the numbers of agents of the cover and ensure financial security for Housing finance will be conducted only
second-largest life insurer SBI Life has, their family," the life insurer said. by one entity, the insurer said, in the draft
strong track record, immense trust in A maximum concession of 20 per cent red herring prospectus (DRHP) for its ini-
the LIC brand and its over 65 years of to 30 per cent or Rs 2,000 to Rs 3,000 in tial public offering (IPO). The five-year
lineage. late fees depending on the premium for period will end in November 2023. T

12 The Insurance Times, March 2022