LICI’s mega IPO recently has been fully subscribed by about 3 times which shows the interest of the investors in the PSU giant Life Insurance Corporation. It needs to be seen how LICI fairs in future and how it satisfies the Central Govtas well as the investors. Though the listing of stock was at a discount which was a dampener for the policyholders who purchased the share with much expectation. However the experts are advising to keep the share for long term as the current market sentiment is little weak.
Central Govt. has infused Rs.3000-5000 Crores in three PSU Non Life Insurers i.e. National, Oriental and United India in addition to earlier infusement in the said insurers to bring at par the IRDAI minimum requirement of solvency ratio. Govt is also actively thinking to privatize one of the insurer this year.
IRDAI’s new guide live about introducing Micro Insurance with low infusement of capital district wise in the country will be good idea wherein Rural and Semi-rural areas will be served better at a low cost of premium as well as better servicing to policy holders.
IRDAI in the current changing scenario should issue guideline for awareness to all the stake holders be it policyholders, intermediaries and allconcerned with the insurance business in order to better coverage and improved services to the masses.
Risk Management awareness is must for the Insurers as well as the policyholders. Suitable awareness programme in the area of Risk Management should be organized in big way which will not only increase the insurance business but also reduce the premium and avoid the loss of capital be it human or the materials.
Overall life Insurance new business premium witnesses a growth of 84% during April, 2022, the cumulative new business premium being Rs.17940 crores during April, 2022 as per IRDAI data which is good recovery post pandemic.
