LIC’s market share has fallen from 71% in Nov 2019 to 58.8% in Nov 2023. Source: IRDAI
HDFC Life, ICICI Prudential Life and SBI Life are three major private players rivalling LIC in the life insurance segment.
Let’s look at four reasons why the private players are stealing a march over LIC.
LIC lags in fostering innovation. On the other hand, SBI Life now provides its policyholders with a wide array of investment options.
The private players use their banks to sell insurance products. As a result, they can sell policies without the help of insurance agents.
LIC started selling their policies digitally as late as FY21. However, its competitors have reaped rich rewards by embracing digital early.
Per SBI Life, life insurance accounted for 3.2% of India’s GDP in FY22, suggesting there is opportunity for private players to take a large slice of this market.