LIC regains share from private players

CHENNAI: In the last three years, insurance behemoth LIC has reversed the trend of private life insurers eating into its market share.

The sole public sector life insurer has increased its share in new business to 71.07% as of March 2016-17, from 70.4% in 2015-16; 69.2% in 2014-15 as it shores up its insurance agents' force and brings down attrition rates.

The state-owned entity also sees more business from each of its individual agents than private players. LIC booked as much as Rs 1.24 lakh crore in first year gross written premium, up from Rs 97,674 crore last year.

This compares to private life insurers booking Rs 50,626 crore as of March 31, 2016-17, up from Rs 40,983 crore for the corresponding period the previous year.

LIC's growth rate at 27.4% in acquisition of new business, was more aggressive than its private counterparts at 23.5% as of March, 2016-17.

"LIC's agency force has a much lower attrition rate than anyone else in the industry. Many of our agents have been with us for life. Its only with our younger recruits that we have had difficulties in retention," said an LIC official.