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LIC targeting a premium income of Rs. 5000 in the current fiscal

Description  :  Corporate
Date  :  Aug-19-2010

According to the reports given by one of the top officials of Life Insurance Corporation of India, it has been made clear that the company is eyeing a premium income of Rs 5,000 crore this fiscal, and that too through alternative distribution channels, which is around four-fold increase to the premium income of Rs 1,140 crore which was achieved by the company through alternative channels last fiscal.

When the bancassurance, brokers and corporate agents are used to sell insurance products, it is known as the alternative distribution channels. As of now, the alternative channels are contributing an insignificant share to the overall annual premium collections of LIC. According to Mr A.K.Sahoo, Executive Director (Marketing-Bancassurance and Alternative Channels) LIC, it was told, "We are now looking to expand the alternative channel of distribution and add more partners. We want to develop this as an area of strength for us."

According to Mr Batra, it has been told that, "We intend to do volume of fresh life insurance premium of Rs 500 crore with LIC within the next three financial years, including this financial year. We are looking to deploy a workforce of 700 in the next seven months who will specifically focus on taking LIC products into smaller towns ."

As of now LIC has 39 banks as bancassurance partners, which includes nine nationalised banks. In addition the company has 510 corporate agents and 125 insurance brokers. Talking about the LIC's market share, the company has a premium income which is 73.43 per cent in the first quarter this fiscal, which is slightly over eight percentage point increase over the market share level of 64.86 per cent in end March 2010, Mr Sahoo said.

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