Straight from the Specialists
(The views expressed in this column are the author’s own and do not represent those of Reuters)
The Life Insurance Corporation of India (LIC) has again come to the rescue of the industry in the financial year ending July 2012. While 23 private players together have a marginal dip in business (-1 pct), LIC has powered ahead with 23 pct growth in new business premium collection.
I sometimes wonder how this is possible. How is it that LIC manages to stay ahead most of the time. “Frequent changes in regulations” is what we hear most when we try to assign a reason for the dip in business for private life insurance companies.
In spite of a being such a large organisation with an equally large agent force, LIC seems to be able to come up on top. Surely, the changes in regulations are much more difficult to drive down with such a large agent force. And given the changes in regulations and the cut in commission levels of some products, it would have been quite a task to motivate and direct the large agent force. A more detailed analysis on this probably at a later date.