Non-participating life insurance products do not offer policyholders any bonuses or add-ons such as dividends. A pure term life insurance policy is a non-participating product that provides a fixed cover against the payment of policy premiums.
“We intend to increase our market share in the non-par business as well as diversify the channel mix,” LIC Chairman MR Kumar told shareholders in the company’s annual report for FY22.
With its agency count of 13.3 lakhs, a large section of the insurer is operating in the rural areas of the country.
it has ensured All-India Presence in various socioeconomic sectors, Kumar said.
More than 95 per cent of LIC’s individual business in terms of premium is received through agency force. it is less than 3 percent bancassurance Channel.
The insurer which got listed on the stock exchanges during the year reported a nearly 40 per cent increase in its standalone net profit to Rs 4,043 crore in 2021-22.
It has recommended a dividend of Rs 1.50 per share, subject to the approval of the shareholders.
“The awareness of the need for insurance to meet the needs of life is at an all-time high. We will continue to explore and expand in new areas keeping in mind the changing needs of our customers.
,digital Intervention, data analysis and process flow transformation to leverage the potential of changing times
needed,” the Speaker said.
He added that the company believes that its aggressive diversification by adding more non-par products to suit customer needs will yield desired results.
“Within that framework, we intend to focus on Bancassurance to continue to grow its volumes consistently and significantly and thereby contribute to our overall business. Our relationship with banks remains strong.
“We want to work with all associate banks as well as strengthen the IT processes between banks and LIC.”
The insurer has a major business mix coming from the participating business (equivalent products). For the financial year ended March 2022, the share of par business within the overall individual business in terms of Annual Premium Equivalent (APE) stood at 93 per cent.