New Delhi: Country's largest life insurer LIC is losing business in the overseas market year after year as it has failed to attract new customers amid stiff competition.
The first premium collection from foreign operations which stood at Rs 123.41 crore in 2004-05 declined to Rs 120.8 crore in the following year and further to Rs 108.67 crore for the year ended March 2007, official sources said.
Thus, the new business in the overseas market declined by nearly 12 per cent in a span of three years, they said. The decline in the first premium income in successive years is mainly because of failure of marketing strategies to attract new customers amid stiff competition, the sources said.
The sources also attributed the decline to reduction in sale of single premium policies by LIC Bahrain for 2004-05. However, on the back of old policies, renewal premium witnessed a growth. During 2004-05, LIC's overseas operations earned renewal premium of Rs 235 crore, which increased to Rs 292 crore during the next year. Renewal premium stood at Rs 341 crore in 2006-07.
Source: PTI, The Telegraph, Mumbai Mirror
Monday, July 7, 2008
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