Private players are seemed to give tough competition to the insurance giant of India, LIC as they are using new-age digital marketing technologies. As per the latest data from IRDAI, the market share of LIC in terms of first year premium up to May 31, 2019, was 66.08%, down from 67.40% up to May 31, 2018.
Over the past one year, LIC’s market share declined marginally. LIC’s share in the overall life insurance business came down from 75.34% in 2013-14 to 69.36% in 2017-18. On the contrary, the market share of 23 private insurers increased from 26.95% in 2013-14 to 30.64% in 2017-18.
Over the past few years, private insurance firms say that they have been investing on new-age digital technologies to make their service reached out in semi urban and rural areas. “Our core strategy comprises 3 Ds – data, digitise and disrupt. We leverage data to understand the behaviour of our customers; we invest in digitisation to improve operational efficiencies; we focus on developing disruptive technologies to differentiate ourselves. This has resulted in better customer retention,” said Nipun Kaushal, chief marketing officer (CMO) of PNB MetLife.
As per Chandramohan Mehra, CMO, Bajaj Allianz Life Insurance, along with digital technologies, innovations in products in compliance with demands of the millennials has been a key factor in terms of growth. “Millennials are looking to meet multiple life goals, and maximise living benefits. Hence, the whole narrative has changed,” Mehra said.
