LIC loses in the overseas marketLIC is losing out in the overseas market. There has been a regular decline in first premium collected in the '05-'07 period, from Rs. 123.41 crore to Rs. 108.67 crore.
Apnainsurance.com Research Bureau
06 Jul 2008
India's largest life insurer, Life Insurance Company (LIC), is losing out in the overseas market. There has been a regular decline in first premium collected in the '05-'07 period, from Rs. 123.41 crore to Rs. 108.67 crore.
Failure to attract new customers, reduction in sale of single premium policies by LIC Bahrain for 2004-05 are some of the factors that have contributed to the decline.
On the other hand the renewal premium of the old policies has increased in the same period, from Rs. 235 crore to Rs. 341 crore.
The company is planning to increase its foreign business by adding new policies and exploring prospects for expansion in new regions, including Asian countries such as Singapore. Currently LIC has operation in countries including UAE, Bahrain, Oman, Nepal, and USA.
It has formed a new joint venture company Saudi Indian Co. for Cooperative Insurance in Saudi Arabia. The venture has already received its certificate of registration.In India, LIC continues to be the market leader with first year premium collections at Rs 59,182 crore in 2007-08.