It is a matter of serious concern for all of us that the market share of LIC in terms of premium income has fallen drastically as on 31.12.2021.
On individual FYP count, as on 31.12.2020 LIC's market share was 52.85%. But the same as on 31.12.2021 is 43.17% with a fall of 9.68%.
On individual SP count as on 31.12.2020 LIC's market share was 72.12%. But the same as on 31.12.2021 is 58.61% with a fall of 13.51%.
On individual NSP count as on 31.12.2020 LIC's market share was 39.10%%. But the same as on 31.12.2021 is 35.12% with a fall of 3.98%.
If we look at the growth factor, LIC's condition is alarming.
On individual FYP count in LIC's growth in 20-21 was 10.11% compared to the previous year, whereas growth of the private sector was 14.18% against the growth for the industry of 12.13%. But most frustratingly the figures as on 31.12.2021 stood at -11.55%, +30.51% and 8.28% respectively.
On individual SP count, while in 20-21 LIC's growth was 31.21%, it has fallen to an unbelievable figure of -27.54% as on 31.12.2021. Private sector in this count registered a growth of surprising 32.37% in the same period. LIC is even below the industry average of -10.84%.
On individual NSP count, in 20-21 LIC had a negative growth rate of -5.73%, which improved to 9.49% as on 31.12.2021. But the private sector is much ahead of us with a growth rate of 29.90% during the same period. In this count also LIC is much below the industry growth of 21.92%.
Comrades, from the above figures it can easily be ascertained that the private sector is growing much faster than LIC, which is a challenging threat to all of us and it needs to be addressed immediately. It is also a reason that the management is very cautious in meeting our demands and expectations, even when they are empathetic to us.For self and for the industry we are now required to be more active, strategic and serious in our job.
From 01.02.2022, LIC increased the rate of pension under its two very popular annuity plans, viz. Jeevan Akshay and Jeevan Shanti. Let us encash the opportunity and educate, inspire and motivate our agents to aggressively sell these two plans to help regain the market share of LIC. Keeping the example of enhancement of annuity rates under these two plans we can establish before the customers that the returns under conventional regular premium plans would also be attractive in terms of returns, so that our agents can focus on both SP and NSP plans.
Obviously, the enhanced rate will not continue for long and this is high time to strike back to secure the future of our beloved LIC.
It is also a matter of fact that the private insurers are seeking permission from the regulator to increase the premium for term assurance plans. Once permitted, as a consequence premium for all plans would increase. This must be brought to the knowledge of the common public.While contrary to that LIC is increasing the benefits to its customers which has already been reflected through increase in annuity rates and that is guaranteed for life. Comrades, let us put our best and prove our competence.
