ULIPs breathe fresh life into LIC

AHMEDABAD: The Life Insurance Corporation of India (LIC) has increased its market share to nearly 70% from 63% in the first seven months of 2006-07. This comes after several years of losing market share to private insurers. LIC’s weighted new premium income shot up by 161% to Rs 14,000 crore in April-October 2006.

R Krishnamurthy, managing director of global insurance consultancy firm Watson Wyatt told ET that LIC this time mobilised its huge agent force in the first half of the year itself. “With the new IRDA norms for Unit-linked Insurance Policies (ULIP) taking effect on July 1, LIC heavily pushed its ULIP product between April and June end,” he added.

A senior LIC official told ET that the momentum of the first half will continue and this year’s growth rate is going to be one of the highest ever.

“For the 8 months ending 30 November, LIC’s new premium collections were about Rs 17,919 crore, a 127% growth over Rs 7,900 crore reported in November 2005,” he said.

ULIPs brought nearly Rs 14,000 crore new premium income in the first 8 months.