LIC loses its market share to private insurers

New Delhi: The market share of state-run Life Insurance Corporation (LIC) slid under 70 percent, while the share of private insurers grew to 30.64 percent, from 28.19 per cent in 2016-17, for the financial year ending March 2018. Further, there was substantial growth recorded in the number of policies issued for the financial year ending March 2018, according to Insurance Regulatory and Development Authority of India's (IRDAI) annual report.

"On the basis of the total premium income, the market shares of LIC decreased from 71.81 percent in 2016-17 to 69.36 percent in 2017-18. The market share of private insurers has increased from 28.19 percent in 2016-17 to 30.64 percent in 2017-18,"said the report.

Meanwhile, private insurers have continued their aggressive push in the market by recording an increase in the number of policies issued when compared to the previous year. "While the private sector achieved a growth of 8.47 percent in the number of new policies issued against the previous year, LIC achieved a growth of 5.99 percent"

In the new business premium, the market share of private insurers also saw growth last year.

"The market share of private insurers in new business premium was 30.64 percent in 2017-18 (28.89 percent in previous year). The same for LIC was 69.36 percent (71.11 percent in previous year). Similarly, in renewal premium, LIC continued to have a higher share at 69.35 percent (72.31 percent in previous year) when compared to 30.65 percent (27.69 percent in previous year) share of private insurers."

The report added that: "Life insurers issued 281.97 lakh new individual policies, out of which LIC issued 213.38 lakh policies or 75.7 per cent of the total new policies issued and the private life insurers issued 68.59 lakh policies (24.3 per cent).