LIC’s millennial connect: How insurance giant is making policies alluring to youth
At a time of economic slowdown, government-owned insurance group LIC has not only gained market share but has also made getting insured attractive to the millennial population. In the current year, LIC has sold about 44% of its total new policies to people aged 30 or below, TC Susheel Kumar, Managing Director of Life Insurance Corporation (LIC), told The Indian Express in an interview. However, there is a reason behind LIC’s successful connection with the young population. “If you look at the agents who are recruited, about 30-35 per cent are millennials. That may be also a good connect. Getting people early is always advantageous. Millennials can be from rural areas also … need not be from urban areas,” TC Susheel Kumar added.
The Indian government-run company now dominates nearly 80% of the insurance segment despite tough competition from the private sector players. “Our market share in premium (new business) was 66.5% as of March 2019. But on September 30, it touched 72.5% … In October, our market share in policies was as high as 78 per cent,” TC Susheel Kumar told the national daily. The company has sold nearly 1.04 crore policies in the current year till October.
LIC beats economic slowdown
Even when the economy is sputtering, the insurance industry has been showing a fairly good growth. “We’re growing faster than the industry. Currently, LIC is showing a growth rate of 37 per cent whereas the industry is 31 per cent and private companies are showing 19 per cent as of October. It (slowdown) should not affect the insurance sector,” TC Susheel Kumar said. Also, people are looking for safer investment and safer options when especially when there is trouble in the market, he added.
Commenting upon if the company is looking to hike premium in Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJBY), TC Susheel Kumar said that it “depends on the claim experience. It’s the government which is paying the premium. We don’t get any profit out of it. We run the scheme. They have formed a committee and it has to recommend it”.