LIC's market share falls to 70% as premium collection dips by 21%

New Delhi: The Indian life insurance company (LIC) is the country's largest insurance company, with new premiums declining to more than 21% between April and December, its market share fell to 70% this fiscal year did.

LIC received a new premium of 51,667.07 rupees in the third quarter of 2014 to 2015, decreased by 21.4% from 65,774.47 rupees in the same period last year.

As a result, the market share of major insurers declined to 70%, and from 2013 to over 75% at the end of 2014.

In contrast, the new premium income of 23 new private companies increased by 16.6% to 22,110.31 rupees in the first nine months compared to 18,951.27 rupees in the same period last year.

In the private sector, Bajaj Allianz 's new business decreased by 11.2%, from 175,798 million rupees to the 1st ranked 1,575.28 rupee premium.

During this period, the Tata AIA project halved to 164.76 rupees and 35.37 rupees. Likewise, according to the Canara HSBC OBC Life report, the new business premium income decreased by 33.3% to Rs. 28,463 million, for the first nine months it was 42,620 million rupees.

Major companies such as ICICI Prudential, HDFC Standard, SBI Life, Max Life, Reliance Life, PNB MetLife, etc. are growing new business growth in the first three quarters

As the largest participant in this market segment ICICI Prudential received a first premium of 3,586.12 rupees and 2,559.13 rupees compared to 3,033.87 rupees in nine months. A thousand rupees.

Up to 17 companies in the private life insurance industry reported growth, whereas six companies reported a decrease in new business premium

Due to the decline of the largest player business, the total premium income of 24 players also decreased by 13% to 13,777.37 rupees, compared to 84,725.74 rupees a year ago.

Table 2 shows the total premium of life insurance from 2001 - 2002 to 2007 - 08. Of the total premiums collected by the life insurance industry, the proportion of insurance premiums collected by LIC decreased from 97% in 2001/02 to 74% in 2007-08. This shows that the competition with the private sector is getting more and more intense. ICICI is becoming a stronger and more powerful player by retaining the bulk of LIC's business. However, the life insurance industry still has plenty of room for development and the private sector will be a challenge for LIC. By applying a variance analysis of significance level of 0.05, we can observe that there is a significant difference in the performance of LIC and other private sector insurers between 2001 - 02 and 2007 - 08.

This survey is aimed at understanding customer satisfaction with the quality of LIC service. LIC is the first insurance company in India. It is currently enjoying the huge market share of insurance. Therefore, using the gap model, the emphasis of research is to understand the gap between the recognized quality of service and the actual quality of service of the LIC. The purpose of this research is as follows. - When conducting all kinds of research, it is necessary to delete the research questions. The problem is said to be obvious, which means half of the problem is solved. The main problem is that this type of research is a difficult task to measure accurate gaps between customer expectations and the various life insurance services of LIC. In fact, gap analysis is usually due to the difference between the appropriate service that reduces the tolerance and the expected service. Therefore, in order to conduct such research, the following problems usually arise.

In 2001 - 2002, the total income of Indian life insurance increased to about 50,000 rupees. If the industry grows at a rate of 20% annually (LIC increases by 39% between 2001 and 2002), Indian life insurance market will reach 17,500 rupees in 10 years. Even if a bank gains 25% market share, they will also explain the premium of 43,000 rupees. This is a discreet figure (in the case of Aviva), as the bank insurance business of most private insurance companies contributes between 25% and 70%. If the average fee is 10% of the total premium, the bank can earn approximately 430 billion rupees annually. Likewise, they can obtain an additional 100 rupees as a commission from the property / casualty insurance business (the premium of the renewable property insurance market exceeds 10,000 Indian rupees per year)