Now Reading: LIC culls low-productivity agents, shifts to high-value policies
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LIC culls low-productivity agents, shifts to high-value policies
LIC culls low-productivity agents, shifts to high-value policies
Life Insurance Corporation of India is pruning low-productivity agents and pivoting to larger policies, a strategy aimed at boosting profitability and persistency. ET BFSI reports agency headcount fell in the June quarter…
The Story in Brief
Life Insurance Corporation of India is pruning low-productivity agents and pivoting to larger policies, a strategy aimed at boosting profitability and persistency. ET BFSI reports agency headcount fell in the June quarter as LIC focused on quality over quantity. The shift follows a decision from October 2024 to stop selling policies below Rs 2 lakh sum assured.
At the same time, LIC MD & CEO R Doraiswamy told Times of India that global economic and geopolitical uncertainty is pressuring long-term policy persistency, with tighter household savings affecting renewal timeliness. While LIC's value of new business margin expanded sharply to 22.9% in Q1, analysts at JM Financial have trimmed premium growth estimates to 8% for FY26-FY28, citing slower-than-expected expansion and subdued ULIP sales.
The Indian Opinion
The narrative that LIC is either thriving or wilting is too simple. The insurer is cleaning its agency ranks and chasing richer margins, yet its own CEO admits macro uncertainty is straining household savings and policy persistency. The real test lies ahead: can the higher-ticket strategy sustain premium growth even if global turmoil persists? Watch the next quarter's APE numbers.
Sources (2): bfsi.economictimes.indiatimes.com, timesofindia.indiatimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
