Life Insurance Corporation (LIC) – India’s top life insurer has emerged as the market leader in Bahrain, part of the Gulf Cooperation Council (GCC), despite tough competition from close to 60 global insurance companies. It has also emerged as the third largest player in the UAE with a strong presence in cities like Dubai.
LIC’s Bahrain operations occupy the top position in the overall international operations of the corporation. As far as the new business is concerned, it contributes over 80 percent of the total share. India’s top life insurer operates in five GCC countries – Bahrain, UAE, Oman, Qatar and Kuwait.
“LIC has 43 percent market share in premium income and 89 percent in policies in Bahrain. The customer base in the countries we are operating in the region mainly comprises of non-resident Indians, though we do sell to the local nationals wherever we are licensed to sell”, according to Rajesh Kandwal, CEO & MD, LIC International, Bahrain.
“Despite the intense competition, we are the market leader in Bahrain. Brand LIC has a very strong connection with the NRIs and quite accepted in the region, thereby making NRI segment as a ‘niche’ market for us. There are around 60 insurance companies operating in the GCC countries”, Kandwal quoted.
LIC has operations in 13 overseas countries, including Fiji, Mauritius, the UK, Singapore, Nepal, Sri Lanka, Kenya, Saudi Arabia etc. The major contributing factors for high performance are attractive products, high trust level of the brand and success of bancassurance in the UAE.
The firm has been doing very well in terms of new business in this year. According to the firm, it has already achieved total first premium income target of $299 million as in June 2015 and shall surpass out target in first premium income by a good margin at the end of the year.
“The year so far has been quite encouraging. In terms of number of policies, we are growing at the rate of over 12 percent and in non-single premium, the growth rate is over 36 percent which is satisfactory”, Kandwal said.
The bancassurance partners play a significant role in selling to the other nationals, particularly locals. The firm distributes its products through tied channels, banks, brokers and corporate agents. BBK and SBI (in Bahrain), FGB, Emirates NBD, ADCB and RAK Bank (UAE) and Doha Bank (Qatar) are the major bancassurance partners. LIC has also signed an agreement with prominent a broker recently. Lastly, Kandwal said, “In order to deepen bancassurance relationship, co-branded credit card with our bancassurance partner First Gulf Bank (FGB) was launched”.
