LIC market share drops to 78%

Life Insurance Corporation (LIC) lost close to 10% market share due to cut-throat competition by private players, which has pushed up growth in the life insurance business by 35.41% to Rs 13,153 crore in 2004.

LIC, which has revamped its operations on the lines of the recommendations of Deloitte, continued to see erosion in market share to 78.43% till December 2004 from 88.21% in 2003.

The state-owned insurer has mopped up Rs 10,316 crore in premium selling over 1.26 crore policies between April-December in the current fiscal, according to figures compiled by IRDA.

The share of 13 private players logged a whopping 148% growth mopping up Rs 2,837 crore in premium from new businesses, and cornering 21.57% of the market.

ICICI Prudential led the private pack with a market share of 6.29% after mopping up Rs 828 crore in premium followed by Birla Sun Life with Rs 387 crore in business and 2.94% of the market pie.