LIC News- LIC has more than 14.1 lakh agents, which is one of the largest agency force among insurance companies across the world.
The country’s largest insurance company, Life Insurance Corporation of India is now planning to enter the health insurance business as well. Instead of creating a new department for the health insurance business, LIC is considering acquiring a health insurance company. Currently, five major insurance companies, Star Health and Allied Insurance, Niva Bupa, Aditya Birla Health Insurance, Care Health Insurance and Manipal Cigna Health Insurance, are working in the country. Insurance regulator IREDA has recently given permission to two companies – Galaxy Health and Narayana Health – to do insurance business.
While announcing LIC’s June quarter results, LIC MD and CEO Siddhartha Mohanty said, “Instead of setting up a vertical for insurance, we felt we could acquire a company that would allow us to sell health insurance across the country.” Mohanty said that the intention is to acquire a company in the current financial year itself.
More than 14 lakh agents
LIC has more than 14.1 lakh agents, which is one of the largest agency force among insurance companies worldwide. According to sources, most of the corporation’s agents are already distributing health insurance for other private companies as the rules allow an agent to work for both life and non-life insurance companies. If LIC also enters the health insurance business, then its existing agents will be very beneficial for the company.
Net profit increased by 10 percent
Life Insurance Corporation of India’s net profit increased by 10 percent to Rs 10,461 crore in the quarter ended June 2024. The company’s total income during the quarter increased to Rs 2,10,910 crore from Rs 1,88,749 crore in the same quarter of the previous financial year. During the quarter under review, the first year premium increased to Rs 7,470 crore from Rs 6,811 crore in the year-ago period. Net income from investments increased to Rs 96,183 crore during the June quarter from Rs 90,309 crore in the same quarter of the previous financial year.
