LIC to develop bancassurance channel

Life Insurance coverage Company of India (LIC) is seeking to develop its bancassurance channel by rising its complete premium to 8-10 per cent over the subsequent 4-5 years. At current, Bancassurance accounts for 3.6 per cent of the entire premium.

As per the knowledge out there within the draft pink herring prospectus filed by LIC, for the nine-month interval ended December 31, 2021, Bancassurance and Different Channels collected a brand new enterprise revenue (NBP) of roughly ₹917 crore, which is roughly ₹2.56 crore. was the share. of complete gross sales. Particular person brokers collected new enterprise premium of round ₹34,464 crore, which is just a little over 96 per cent.

“We wish to focus extra on bancassurance going ahead,” mentioned Siddhartha Mohanty, managing director, LIC. enterprise Line On the sidelines of his IPO press convention right here on Friday.

LIC follows an all-encompassing distribution platform for particular person merchandise together with particular person brokers, bancassurance companions, different channels (company brokers, brokers and insurance coverage advertising companies), digital gross sales (via a portal on the company’s web site) and micro-insurance. Brokers included.

It has the most important particular person agent community amongst life insurance coverage entities in India, comprising roughly 1.33 million particular person brokers as of December 31, 2021, which was 6.8 instances the variety of particular person brokers of the second largest life insurer.

a number of companions

LIC at the moment has 70 bancassurance companions, together with eight public sector banks (Central Financial institution of India, Union Financial institution of India, Indian Abroad Financial institution, Punjab Nationwide Financial institution, Financial institution of Maharashtra, Indian Financial institution, Punjab & Sind Financial institution and UCO Financial institution). Are included; 5 non-public sector banks (Karnataka Financial institution, Tamil Nadu Mercantile Financial institution Ltd., Axis Financial institution, Metropolis Union Financial institution and IDBI Financial institution); a overseas financial institution; 14 Regional Rural Banks; and 42 co-operative banks.

LIC mentioned in DRHP, “(We are going to see) improve our market share of bancassurance channel by tying up with extra financial institution companions and bettering their productiveness by offering digital options for patrons on-boarding for our merchandise.”

The market share of LIC was round 62 % by way of premium or gross written premium, about 61 % by way of new enterprise premiums, 72 % by way of variety of particular person insurance policies issued, and 89 % by way of premiums. Variety of Group Insurance policies issued for the 9 months ending December 31, 2021.

For the general Indian market, the share of recent enterprise generated for private life insurance coverage via bancassurance channels elevated from 24 per cent in FY16 to 29 per cent in FY21. Personal firms have a comparatively excessive dependence on bancassurance for brand spanking new enterprise, with their stake rising from 52 per cent in FY16 to 55 per cent in FY21.

“Whereas company channels will proceed to be the distribution base for many life insurers, with accelerated digital adoption and technological developments, life insurers will deal with bettering productiveness and effectivity over the subsequent few years through the use of an omnichannel technique, and each digital and Will reap the benefits of bodily sale strategies,” it mentioned within the DRHP.


An official mentioned the primary public providing proposed by state-owned LIC has garnered curiosity from over 25 anchor traders, each overseas and home. The anchor guide might be opened on Might 2.

About 50 per cent of the supply is reserved for QIPs together with anchor traders, whereas retail traders will maintain round 35 per cent of the web subject, one other 15 per cent for prime web price people and ten per cent for policyholders.

Revealed on

April 30, 2022

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