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LIC intends to raise market share in non-participating biz

September 02, 2022

LIC intends to raise market share in non-participating biz
LIC intends to raise its market share in non-participating insurance products as well as diversify the channel mix, a top company official said. Having a market share of 65 per cent, the state-owned life insurer offers 17 individual participating products, 17 individual non-participating products, 11 group products and 7 products with rider benefits.

Non-participating life insurance products do not offer any bonuses or add-ons such as dividends to the policyholders. A pure term life insurance policy is non-participating product offering a fixed cover against payment of the policy premium.

“We intend to increase our market share of non-par business as well as diversify the channel mix while ensuring that our agents stay as the main distribution pillars of our products,” LIC chairman M R Kumar told shareholders in company’s annual report for FY22.

With its agency count of 13.3 lakh, the insurer has a large section of them working in rural areas of the country.

It has ensured a pan-India presence across various socioeconomic segments, Kumar said.

More than 95 per cent of LIC’s individual business in terms of premium is sourced through agency force. It is less than 3 per cent through bancassurance channels.

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