We will keep on increasing our policy ticket size: Siddhartha Mohanty, Chairman, LIC

financialexpress.com:

State-run Life Insurance Corporation of India (LIC) will keep on increasing the ticket size of policies by keeping all risk factors under control, says its chairman Siddhartha Mohanty. In an interview with Mithun Dasgupta, Mohanty says the insurer’s strategy will be to keep improving the product mix and the channel mix as well as transform itself on technology in parallel in order to clock higher growth rate going forward. Excerpts.

LIC on Thursday reported a close to 14-fold year-on-year jump in net profit on a standalone basis for Q1FY24. Prime Minister Narendra Modi praised LIC’s performance. On Friday, the company’s scrip ended the day at Rs 659.95 a share, up 2.78%. You must be happy.

We are very thankful for the recognition that our respected PM has given us by mentioning our growing strength. We are committed to fulfilling the ‘insurance for all by 2047’ objective for the nation. As you can see, the profit growth is there and it appears that the market participants have taken note of the same.

After the results, you said the company’s objective is to have industry growth rate or better. What are your strategies for this as the company faces steep competition from private sector peers?

If you look at FY23 and the Irdai data for that period you will see that LIC grew at a pace of more than 16% year on year. This was one of the highest growth rates in the industry. Given our size and high base, it should be seen as even more significant. In 2023-24, we of course intend to do better for the full year. Strategy will be to keep improving the product mix and the channel mix as well as transform ourselves on technology in parallel.

During Q1FY24, LIC’s net premium income growth was almost flat when compared with the