LIC switching focus to non-par policies

LIC of India, is seeking to change its product mix such that policies rewarding equity investors gain a bigger share of business while maintain its dominance in a rapidly expanding industry.

That strategy translates to creating insurance policies that are non-participating rather than participating in nature, although the calibrated switch wouldn’t compromise on potential returns to policyholders, chairman M R Kumar told. At LIC, participating or ‘par’ products, where holders get a share of the profits, are currently dominant.

“Our strength has generally been par (participating products) and that is again a strategic call; we have to see how to create value for shareholders by selling more non-par,” Kumar said. “This is something we will work on over a period of time.”