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TitleLIC strategy
TagsInsurance Life Insurance Financial Risk Financial Services Economies
File Size414.3 KB
Total Pages16
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Page 16

Savvy marketiSavvy marketing is ng is another area where the another area where the new companies would score over LIC if new companies would score over LIC if the latter the latter 

continues its current style of functioning. For example, when NBFCs and even nationalisedcontinues its current style of functioning. For example, when NBFCs and even nationalised

 banks deliver their fixed deposit certificates inside a  banks deliver their fixed deposit certificates inside a plastic folder, LIC sends its plastic folder, LIC sends its policiepolicies –s –

to be preserved for decades -- in a brown envelope.to be preserved for decades -- in a brown envelope.

The flashy office and the glossy product literature of private insurers are sure to attractThe flashy office and the glossy product literature of private insurers are sure to attract

customers and will immensely aid their marketing teams. On the other hand, LIC agentscustomers and will immensely aid their marketing teams. On the other hand, LIC agents

depend entirely on their personal skills without any product literature to support.depend entirely on their personal skills without any product literature to support.

On its costs side, LIC has to keep an eagle eye. "While its first year premium cost is theOn its costs side, LIC has to keep an eagle eye. "While its first year premium cost is the

lowest in the world at 65 per cent, it is not so in the case of renewal premium. Good globallowest in the world at 65 per cent, it is not so in the case of renewal premium. Good global

companicompanies have their renewal premium cost at eight per es have their renewal premium cost at eight per cent whereas for LIC it is around 13cent whereas for LIC it is around 13

 per cent," he remarks. In fact, premium procurement costs will go up further if LIC decides to per cent," he remarks. In fact, premium procurement costs will go up further if LIC decides to

 pay agency commission as per the Insurance Act to retain its top-notch agents. pay agency commission as per the Insurance Act to retain its top-notch agents.

But for these small hitches, the LIC juggernaut is standing on a solid wicket.But for these small hitches, the LIC juggernaut is standing on a solid wicket.

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