LIC Chairman: LIC would introduce three to four products in FY24 to achieve double-digit increase in new business premium

24 Nov 2023 , 11:36 AM

Insurance behemoth Life Insurance Corporation (LIC) has lined up 3-4 product releases in the coming months with a view to generate double-digit growth in new business premium in the current financial year.

Over the previous year, double-digit growth is what we anticipate. We will succeed in doing so because a current trend indicates an increase in individual retail business. We’re planning to introduce some innovative, eye-catching products to further demonstrate our commitment,’ LIC Chairman Siddhartha Mohanty told PTI in an interview.

The insurance giant Life Insurance Corporation (LIC) plans to launch three to four new products in the upcoming months in an effort to increase new business premiums by double digits during the current fiscal year.

According to him, LIC plans to introduce a single product during the first week of December in the hopes that it will find great success.

Speaking about some of the new product’s features, Mohanty said that it will guarantee returns and that the policyholder will receive 10% of the amount guaranteed for the duration of their life after maturity.

‘Over the last year, we anticipate double-digit increase. We will succeed in doing so because a current trend indicates an increase in individual retail business. We’re planning to introduce some innovative, eye-catching products to further demonstrate our commitment,’ LIC Chairman Siddhartha Mohanty said.

LIC’s new business premium income (individual) segment saw 2.65% rise in the first half of the current financial year, reaching Rs 25,184 crore, compared to Rs 24,535 crore in the same time last year.

The insurance premium that is due in the first policy year of a life insurance contract, or a single lump sum payment from the policyholder, is known as the ‘new business premium.’ It denotes fresh business that a life insurer has underwritten.

With an overall market share of 58.50% in the life insurance business, LIC is the market leader in terms of market share as determined by first year premium income as per IRDAI.

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