Mumbai: State-run LIC had recently launched a few schemes targeting the millennials; and this has at least worked in favour of western zone of the insurer. As per the data, in the western zone about 50 per cent of new policies are taken by NexGen in the age group of 0-30 years.
Speaking to reporters at LIC’s 63th anniversary, C Vikas Rao, Zonal Manager, Western zone said, “The Western zone is the largest zone of the corporation with 20 per cent share in new business premium and with 33,61,000 policies and Rs. 10,271 crore first year premium, the zone is number one in both.” This zone comprises of Maharashtra, Gujarat, Goa; and Union Territories of Daman, Diu and Dadra, and Nagar Haveli.
Commenting about reaching out to millennials, Rao said, “LIC is trying out different ways to reach out to them. Data suggests that of the 33.61 lakh new policies issued, around 6.05 lakh new policies are issued for the age group of 0 year-21 years and around 9.33 lakh new policies are issued for lives that fall in the age group of 22-30 years. The first time premium from this group is around Rs 1,856 crore. An LIC executive said, “We have a strategy in place to reach to the millennials. We are exploring the digital space and are looking at forging partnership with web aggregators. We have also made our products available online.”
At present, the company is optimistic that with some products, such as Jeevan Amar and Tech Term, it will be able to compete with other insurance companies that are targeting millennials. The insurer is also considering introducing two new unit-linked insurance plan (ULIP) to attract more lives in the age group of 21-30 years. “The two new ULIP products will be introduced soon.” Overall, LIC has around 30 products across various categories.
Commenting on web aggregators, Rao said, “We are expanding into it (web aggregators) space.” He added the focus of the life insurer is to enhance e-presence and e-delivery capabilities. “We are also issuing e-policies along with physical policy document.” Meanwhile, the insurer receives 56 per cent of premium payments through alternative channels.
Other than online presence, the Western zone of LIC has plans to focus on increasing the share of female insurance and child insurance from 30 per cent and 12 per cent to 35 per cent and 15 per cent respectively.
In case of claims from the flood-affected western zone, one death claim has been made from Satara. Overall, in the Western zone around 43.72 lakh claims have been settled for an amount of Rs 26,828 crore for the financial year 2018-2019. Around 1.42 lakh death claims worth Rs 2.793 crore have been settled in the financial year 2018-19 in the Western zone.