Life Insurance Corporation (LIC) which is aiming to regain market share from private sector companies, is planning to hire two lakh agents (distributors) across the country in the coming months. “We are on a recruitment drive,” LIC chairman SK Roy said.
“We were at 14 lakh a few years ago. Now we are at 12 lakh. We want to go back to that figure. The new regulations have simplified the process. Earlier it was training, licensing and then becoming active. Now it’s only a question of appointment. Now instead of licensing requirement, it’s an appointment. He (agent) gets appointed. The new process is cheaper as licensing has gone away,” Roy told The Indian Express.
When asked whether the higher foreign direct investment (FDI) will make competition tougher for LIC, Roy said, “in case if there’s increased competition to be faced from our competitors on account of the increase in foreign equity, then that will spur us into doing even better than what we had done in the past.”
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“Today, the industry’s battle is fought on products, services and distribution. In distribution, we are already a well diversified company. We have the right channel. We are present in all distribution systems. Our job is to strengthen them which we are doing this year,” he said.
On services, Roy said nobody settles more claims than LIC anywhere in the world. “We have settled 99.78 per cent of all the claims,” he said.
According to him, the product regulation gives LIC an opportunity to come out with very innovative products. “For example, we launched a child product a few weeks ago. It’s called Jeevan Tarun. You will find such an innovative child product is not available in the Indian market today. We’re certain that competition won’t be able to compete with the USPs of our innovative products,” he said.
Roy said the corporation is set to regain the market share in premium income. “On every other parameters other than new sales and premium out of new sales, the corporation has done an outstanding job. There was a decline in premium of 10 per cent in 2014-15. However, in the latest quarter our inflow was growing at 30 per cent. In May we have regained around 130 basis points of market share. We will cross 75 per cent in premium income… we will regain this market share before the end of the year. It was 69.3 per cent in
May,” he said.
In calendar 2014, the Corporation did not have adequate number of products which would have enabled it to do as well as it had done in the previous year, he said.
‘New regulations have simplified the process’
* “We were at 14 lakh a few years ago. Now we are at 12 lakh. We want to go back to that figure. The new regulations have simplified the process,” said LIC chairman SK Roy.
* Roy said the corporation is set to regain the market share in premium income. “We will cross 75 per cent in premium income… we will regain this market share before the end of the year,” he said.