In an interview yesterday, the LIC Chairman Mr.Kumar claimed that LIC has a market share of 65%
However, in an Investor Presentation by Max Life, LIC is shown to have a market share of only 37% !
What explains this mystery?
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The LIC Mystery
2 replies on “The LIC Mystery”
Max Life chart is talking “Individual First Year Premium”.
This excludes group policies and excludes older policies.
LIC’s share of total premiums from new policies issued in FY22 is 37%.
LIC chair is likely quoting gross revenue mkt-share, In past LIC had 100% mkt-share, so if you add in revenues from past issued polices, thier share of total life insurance premiums collected in FY 22 (incl premiums collected from older policies) is probably 65%
The Max Life chart is a truer measure of LIC’s market-share “today”.
I personally prefer VNB market share (Value of New Business = PV of all new policies written in the FY / period under review. VNB normalizes for differences in product mix – par/non-par/protection etc.)
Value vs volume difference