LIC appears to be ill-equipped to handle new dynamics of insurance market

LIC identifies the problems well in its DRHP but what the markets will watch is how nimble it is with the solutions

The risks emerging for LIC, from which the government plans to sell 5 per cent of its stake, are that its strengths do not address the expanding opportunities in the Indian insurance sector. The brand LIC may have been recognised as the third strongest and the 10th most valuable global insurance brand in 2021 by Brand Finance but millennials, the biggest buyers of insurance, are looking elsewhere. A reading of the draft red herring prospectus (DRHP) of India’s largest life insurance company with a market share of 64.1 per cent gross written premium (GWP) is, therefore, somewhat worrying.

LIC is