According to a recent report by Reuters, India’s Life Insurance Corporation (LIC), the country’s largest life insurer, expects a recovery in premiums from the fourth quarter of the current financial year. The company’s Life Insurance Corporation (LIC) has been facing challenges due to the ongoing COVID-19 pandemic, which has resulted in a significant decline in policy sales and a corresponding drop in premium income.
However, LIC’s top official, K. V. S. Manikanand, expressed optimism about the company’s financial health, saying that the insurer is expected to bounce back in the fourth quarter. According to Manikanand, LIC’s premium income is expected to grow by 10-12% from the current quarter, which would mark a significant rebound from the steep decline seen earlier in the year.
Manikanand attributed the expected recovery to a number of factors, including the easing of COVID-19 lockdowns, increased spending on healthcare, and renewed interest in insurance among consumers. The official also pointed out that LIC has been actively looking to increase its presence in the online space, with 50% of its new policies being issued through online channels during the pandemic.
The Insurance Regulatory and Development Authority of India (IRDAI) has also hinted at potential reforms in the insurance sector, which could pave the way for further growth and expansion of the market. These reforms include the introduction of a national-level insurance regulator, changes to existing regulations, and increased focus on health and critical illness cover.
Overall, the expected recovery in premiums from LIC, the country’s largest life insurer, is a welcome sign for the insurance industry, which has been grappling with the challenges posed by the pandemic. The growth in premium income is expected to be driven by increased demand for life and health insurance, as well as the company’s efforts to expand its presence in the digital space. With the introduction of reforms, the insurance sector is likely to see increased competition, choice and growth, which will benefit both insurance companies and consumers alike.
In conclusion, India’s largest life insurer, LIC, is expected to recover from the impacts of the COVID-19 pandemic and is likely to see a significant increase in premium income in the fourth quarter. This growth is expected to be driven by increased demand for life and health insurance, as well as the company’s efforts to expand its presence in the digital space. The introduction of reforms in the insurance sector is also likely to bring in more competition and growth, benefiting both insurance companies and consumers.