sponse and in future more services may
Current year’s Gross Investment shows a
of -14.67% of the private sector at the
be offered through this channel.
positive variation of 30.75%.
end of H1. LIC’s market share in terms of first year premium income is 66% at
LIC has started a new distribution chan-
“As there will be more flow of funds in
nel “Direct Marketing” in this year, which
the second half of the financial year, the
the end of H1.
will explore the new age marketing
tempo of investment will also go up sub-
through digital campaigning and online
stantially in the remaining days of the
Challenge
marketing generating business leads.
year. During the balance period in the
“The main challenges faced by LIC to-
Initially operations were started at six cen-
current fiscal, LIC plans to invest
day are those of competition both in terms
ters. This channel is also gaining wide
Rs.28,000 crore more in equity and
of the fast changing economic scenario
popularity and may be extended to fur-
Rs.20,000 crore more in Corporate Debt,”
and in terms of the competitors not just
ther centres.
said Vijayan.
in the insurance industry, but also from various other channels of investments.
Investments in the current year
Market share
However, we have always realigned our
The current fiscal began with a posi-
business strategies and are always ready
LIC’s Gross Investment in the current
tive note for LIC with 60.79% market
to take on a new challenge,” said Vijayan.
financial year stood at Rs.1,03,101 crore
share. During the current fiscal, it regis-
Collaborations
Asset Class
Amount (Rs. in Crore)
In the Bank Assurance and Alternate channel vertical, LIC has tie-ups with
Central and State Govt. securities
56,756
Equity
22,076
Corporate Debt
19,111
Insurance policies, allowing the Corpo-
Infrastructure
4,361
ration the benefit of low-cost distribution
Banks, Corporate Agents and referral Agencies thereby allowing them to sell
and easy accessibility of their customer as on 16.10.2009 as against Rs.78,851
tered a growth 35.21% in the first year
crore in the corresponding period last year.
premium income as against de-growth
base. “The alternate channel of distribution has come to play a significant role in achieving the objective of expanding the life insurance market by generating volumes of First Premium Income with reduction in cost through Bank assurance, Corporate Agents and Brokers. With the modest beginning of 1455 no. of policies and Rs.2.21 crore of FPI in the year 2001-02, this channel achieved a mark of Rs.1076.59 crore FPI and 862333 No. of Policies in the year 2008-09. We have at present tie up with 34 Banks on Corporate Agency model and 57 Banks on Referral Model.
Last year, we had a
growth rate of more than 32% and we look forward to a significant contribution during the current year,” said Vijayan.
53
DECEMBER - 2009