As per the Chairperson of LIC, Siddhartha Mohanty, the company is all set to take advantage of the underpenetrated health insurance space and is prepared to explore both organic and inorganic routes for the segment.
LIC’s Strategic Shift towards Health Insurance
In an interview to NDTV Profit’s Sajeet Manghat, he said that there is a huge scope in the health insurance space as the coverage out of the total health expenditure is very less.
The company has some experience in the health insurance products under its belt and the natural choice for everybody is that LIC should be in this health space.
The company also said that they are working on both organic and inorganic growth paths, according to Mohanty. “We are working internally on health insurance ahead of the composite licence being allowed.”
There has been a directional change in its approach to marketing and product mix, once the insurance behemoth got listed previously. There has also been a directional change it the approach that the company made in its marketing and product mix.
LIC’s Strategic Growth Targets and Profit Milestones
Mohanty said that “In March 2022, non-par share to annual premium equivalent was 7.12% and today, it stands at 18.32%. Going forward, our target is to take it to 20–25%”.
In the non par segment, the insurance giant expects to grow at 2–3% growth, he said while adding that “At the same time, our focus will be on the par segment because that is the major segment.”
In the current financial year, the state-owned life insurance company is looking for a double-digit growth.
In terms of margins from new business, last fiscal the company got 16.8% margin and now the company wants to match it with the private peers and on the same line, Chairperson added that “We are looking for a 2–3% growth in margin in FY25.”
Exuding confidence in the company, Mohanty said that the same shall play key player’s role in the India growth story.
Notably, the company’s profit increased rose 2.5% year-on-year to Rs 13,763 crore in the quarter ended March.
