The Life Insurance Corporation of India (LIC) has had one of the busiest months ever during December 2013, when thousands of crores were collected, LIC chairman SK Roy said. December 31, 2013, was the last date for selling old products and there was a frenzy to buy the polices before the deadline ended.
Around R8,500 crore was collected and involved more than 75 lakh collections. This was 130% higher than the collections LIC had made in December 2012, Roy said.
This means LIC would show higher growth, he said. The company has achieved 80% of its target by the third quarter and after a couple of years, it will show growth, Roy said.
“The insurance industry is showing growth after a long time. If the current year is an indication, then the next few years are going to be bright and this is good news”, Roy said.
The products have been redesigned and distribution systems are being transformed, making them more customer-centric. LIC’s market share, which had gone down to 67%, is now back to 84%.
The agency business had not been growing because of the high pass percentage for agents but after relaxing passing percentage from 50% to 35% it has made a difference, Roy said.