According to a Crisil analysis, LIC is the third-largest in the world, but it has the greatest return on investment (ROI) of 82 per cent
- ByStartupStory | February 7, 2022
According to a Crisil report, the IPO-bound national insurer Life Insurance Corporation (LIC) is not just the world’s largest in terms of home-market share with over 64.1 per cent of total gross written premium as of 2020, but also the one with the highest return on equity at 82 per cent and the third largest in terms of life insurance premium.
While LIC’s share of the market has been declining steadily 100% within the pre-2000 era to 71.8 per cent in 2016 and further down to 64.1 per cent in 2020–the same was only 5% in 2016 and 8% in 2020 for SBI Life, the country’s second-largest insurer, according to Crisil in a report released in November 2021 but not yet made public.
It is thought to be due to this the Corporation’s massive agent network, which accounted for 55 per cent of the overall agent network in the country as of March 2021 and was 7.2 times the number of agents of the country’s second-largest life insurer, SBI Life, as well as its strong track record, incredible trust in the LIC brand, and it’s over 65-year lineage.
Due to the pandemic, the global life insurance market shrank by 3.1 per cent in 2020, falling to USD2.79 trillion from USD2.88 trillion in 2019. Advanced markets were struck worse, contracting by 3.9 per cent, compared to developed markets, which only shrank by 30 basis points.
Given the enormous USD 16.5 trillion coverage deficit in the nation as of 2019, which was far bigger than its Asian competitors, LIC has a lot of potential. As of 2019, the protection gap in Asia-Pacific stood at 83 per cent, the greatest of any region.
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