After a dismal first quarter, Life Insurance Corp. of India (LIC) clocked a sharp 40% month-on-month growth in individual premiums in July and August, led by a jump in the sales of big-ticket pension and term assurance plans.
LIC witnessed negative growth in new business in the first quarter as its agents could not meet customers due to the lockdown restrictions.
Given continuing curbs, LIC has shifted focus to fewer but bigger policies, which are being sold at 50% higher size than in the last fiscal year, managing director Vipin Anand said in an interview. With assets of more than Rs34 lakh crore, LIC is India’s largest life insurer. “Apart from high net-worth individuals (HNIs) who are buying big-ticket policies, customers belonging to the middle class too are now buying policies with Rs12-15 lakh sum assured, which was earlier at around Rs7-10 lakh,” Anand said, adding even people close to retirement are buying large pension products.