LIC gains 2% market share in new business premium

LIC has gained over 200-basis points (bps) market share in new business premium (NBP) during the April-June quarter of FY23.

According to IRDAI data, at the end of the June quarter, LIC’s market share in NBP stood at 65.42 per cent, compared to 63.25 per cent at the end of FY22.

However, its market share is still below the FY21 and FY20 levels. In FY21, LIC’s NBP market share was 66 per cent, while in FY20, it was 69 per cent.

NBP is the premium acquired from new policies for a particular year.However, LIC does not enjoy a similar market share on an annualised premium equivalent (APE) basis.

In FY22, LIC’s market share was 46 per cent in APE terms. It stood at 49 per cent in FY21 and 59 per cent in FY20.

LIC has a high share of single premium products due to its large group business. In fact, single premiums constitute over 70 per cent of its NBP. For private sector players, it is 20-30 per cent of their NBP.

Covid-related disruptions posed distribution challenges for LIC initially, given it has always been an agency-driven institution.