LIC to launch 3-4 products for double-digit growth in new biz premium in FY24: Chairman

Insurance behemoth Life Insurance Corporation (LIC) has lined up 3-4 product launches in the coming months with a view to achieve double-digit growth in new business premium in the current financial year.

"We are projecting double-digit growth over the last year. We are going to achieve that because a recent trend is showing uptick in individual retail business. In order to further reinforce our commitment, we are going to launch some new attractive products," LIC Chairman Siddhartha Mohanty told PTI in an interview.

LIC is going to launch one product in the first week of December, he said, hoping that it will attract a lot of traction in the market.

Sharing some features of the new product, Mohanty said it will provide assured returns and after maturity, the policyholder will get 10 per cent of the sum assured life long.

He exuded confidence that the new product will create disruption in the market as everybody wants to know how much he or she is paying and the returns one would get after 20-25 years.

In addition, he said, loan facility and premature withdrawal would also be a feature of the new product.

Guaranteed return products are in the interest of policyholders and shareholders, he said, adding that many shareholders are also policyholders. "So, it is dual benefit for policyholders," he added.

Mohanty said 2-3 more policies will be launched during the course of the year to achieve double-digit growth in new business premium.

During the first half of the current financial year, LIC's new business premium income (individual) segment registered 2.65 per cent growth to Rs 25,184 crore as against Rs 24,535 crore in the year-ago period.

New business premium is the insurance premium due in the first policy year of a life insurance contract or a single lumpsum payment from the policyholder. It indicates new business underwritten by a life insurer.

In terms of market share measured by first year premium income as per IRDAI, LIC continues to be the market leader by market share in life insurance business with an overall share of 58.50 per cent.

For six months ended September 30, LIC had a market share of 40.35 per cent in individual business and 70.26 per cent in group business.

The Assets Under Management (AUM) of the insurance giant increased to Rs 47,43,389 crore as on September 30, 2023 as compared to Rs 42,93,778 crore a year ago, registering an increase of 10.47 per cent.

The overall expense ratio for the first half of this fiscal was 15.14 per cent as compared to 16.69 per cent in the year-ago period.