Life Insurance Corporation of India (LIC) said it is in the process of strengthening its omnichannel presence in the country to make itself directly and easily accessible to a larger population in the country.
Currently, 95% of policyholders come through more than 13,000 LIC agents, while only a small percentage of people buy policies directly online, the insurer said.
“We expect our omnichannel presence to grow strongly from now on. Currently 95% of our policyholders are introduced to the system through agency channels,” said MD Mini Ipe.
She said the company has also seen growth in digital transactions, with 76% of policyholders paying premiums online last year, up from 47% a year earlier.
Initial reaction to LIC’s IPO announcement was encouraging, as about 6.48 billion policyholders had linked their PAN number to their policy details as early as Feb. 28, 2022, well ahead of the deadline, said Rahul Jain, director of the division for Investment and Public Asset Management (DIPAM) at the Ministry of Finance.
These 6.48 billion policyholders are eligible to participate in the IPO once they have opened their DMAT accounts. “To date, we know through custodians that approximately 1.21 million DMAT accounts have been opened by policyholders,” added Mr. Jain.
LIC policyholders can invest up to ₹2 lakh in the reservation category and also an equivalent amount in the retail category. Policyholders receive a ₹60 rebate and also a 10% reservation at the IPO.
LIC has set a price range of ₹902 to ₹949 per share. The government intends to raise 21,000 crore through the issue. The offer opens on May 4th and ends on May 9th.
One of the largest life insurance companies in the world, LIC had £40 trillion in assets under management as of December 2021. The company sold 21 million policies in calendar year 2021.