Now Reading: LIC rationalises low-productivity agents, shifts to high-ticket policies
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LIC rationalises low-productivity agents, shifts to high-ticket policies
LIC rationalises low-productivity agents, shifts to high-ticket policies
Life Insurance Corporation of India (LIC) is rationalising low-productivity agents as it shifts focus to higher-ticket policies. Agency headcount declined in the June quarter after the insurer adopted a strategy of selling…
The Story in Brief
Life Insurance Corporation of India (LIC) is rationalising low-productivity agents as it shifts focus to higher-ticket policies. Agency headcount declined in the June quarter after the insurer adopted a strategy of selling policies with sum assured above Rs 2 lakh since October 2024. LIC hopes this will improve premium persistency.
JM Financial has cut its target price on LIC to Rs 480 from Rs 500, citing slower premium growth, but retained a 'Buy' rating. The brokerage raised VNB margin estimates to 23% for FY27, driven by richer product mix and operating efficiencies.
The Indian Opinion
The narrative that LIC's shrinking agent force signals weakness misses the point. The insurer is deliberately pruning unproductive agents to improve business quality. Margin expansion to 22.9% in Q1 suggests the strategy is working, but much hinges on persistency, especially as equity market volatility could drag ULIP sales. The real test will be whether the 37th and 49th month persistency cohorts keep improving in the next two quarters.
Source: bfsi.economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
