People’s trust is LIC's success factor
Kochi: Managing Director of Life Insurance Corporation of India (LIC) T C Suseel Kumar, who is from Kerala, said that people’s trust in LIC has helped increase its market share. He was speaking to Mathrubhumi as LIC’s share in the life insurance market reached the highest recently.
How did LIC increase its market share despite tight competition?
LIC’s success lies in the consideration given to its customers. New policies with multiple features were introduced which in turn helped gain the market. Two new term assurance policies, Jeevan Amar and Tech-Term, were introduced at a competitive price. The progress in the group insurance premium is another factor. The selfless work of the LIC team members also helped sustain market dominance.
Is the number of agents rising?
According to the figures in November 2019, there are 8.2 lakh active agents in the field. One lakh agents were recruited this financial year alone. A special training programme called ‘impact training’ will be conducted for new agents from this year onwards. Also a one-day training is given to the existing agents.
Is there any rise in the market share among youngsters?
If millennials (those born after 1980) are made aware of the importance of insurance, it will create a new wave. According to statistics, about 22 lakh among the total 1 crore policies sold in the current financial year were bought by youth aged between 18-25 years. 20 lakh policies were sold to people in 25-30 age group. When both groups are considered together, it amounts to 42 percent in total.
When people of 30-35 age group also is counted, there is another 17 lakh policies sold. The number of policies LIC sold to youngsters is more than the total number of policies sold by other private insurance companies from April to October 2019, which clearly shows that the young generation impose trust on LIC.
What plans are created to attract the youth?
LIC has many plans namely term insurance, health, savings and annuity that are suitable for the youth to achieve all goals.
They are also attracted by the online facilities for premium payment, to apply for policy loan and change the address. Four policies can be purchased via online. The customers who prefer digital transactions can use chatbot facility.
Financial condition is not good. Most of the industries are in poor state. But how does LIC manage to go forward strongly?
The investors choose safe methods during crisis period. Interest rate for bank deposit is decreasing. Also the value of other assets is not rising. At this time, LIC will be the ‘natural choice’ of everyone.