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LIC losing market share to Private-sector
If you’re a LIC Policyholder, there is news for you!
Private-sector insurance companies gained 8% market share from LIC in the last 2 yrs
New Delhi: Private-sector insurance companies have gained eight per cent market share from LIC in the last two years.
On a 2-year CAGR basis, the retail weighted received premium (RWRP) growth in YTDFY22 is 10.2 per cent for the private life insurers and (-) 6.6 per cent for LIC. This divergent growth trend has led to the private sector gaining eight per cent market share from LIC in the last 2 years, Emkay Global Financial Services said in a report.
LIC is struggling in the retail segment, the report said. After the rebound in November 2021, LIC's growth in retail in December '21 slowed, and was materially lower than the private sector. This sustained undergrowth by LIC has meant that it has consistently lost market share in retail. With its unchanged way of doing business over decades, LIC may lose its stronghold in the retail life segment, particularly in the high-ticket segment, the report said. With the bank channel increasingly becoming important for savings product distribution and digital channels becoming important for retail protection, LIC may witness turbulent times in terms of growth due to its heavy reliance on the agency-led distribution mix. The sustained growth outperformance by Top-4 private players (SBI Life, HDFC Life, ICICI Pru and Max Life) meant that the RWRP market share of these four together has crossed LIC's market share for YTD FY22 again in December 2021, the report said.
