Life insurance firms must take inputs from youngsters for customised products, here’s why

Life insurance firms must take inputs from youngsters for customised products, here’s whys

So far as providing life insurance cover to more people is concerned, the performance of the industry has been disappointing as it appears from the IRDAI data released recently regarding the performance of the industry for the year 2018-19. The growth of new business premium (NBP) has been mere 10.73%. LIC is responsible for pulling down the industry average as the state-behemoth achieved only 5.68% growth in the NBP income for the whole year.
The reason is not far to trace. The growth in number of policies sold is just 1.7% and the industry has narrowly escaped a negative scenario in this regard. Sometimes I wonder why the untapped potentiality has been eluding the insurers. Unless and until life insurers together achieve 15-20% growth in sale of policies “providing insurance cover to all” will remain an elusive target.With introduction of so much of technology, there is a need to reach out to a large number of people. Insurers are deciding on business strategies without the consumer involvement. Every year, LIC selling more and more single premium policies is nothing but chasing a mirage. They want to accomplish success through this route but when the year ends they find the success drifting away from them. The growth of total premium of the industry has been just 10.73% and LIC’s market share in regular premium business dwindled down to 40%.

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