Life Insurance Corporation of India (LIC), the country’s largest insurer, has seen its market share slip to 70 per cent this fiscal as its new business premium shrunk by over 21 per cent in April-December period.

LIC garnered new premium of Rs. 51,667.07 crore during the first three quarters of 2014-15 as against Rs. 65,774.47 crore in the same period of the previous fiscal, a decline of 21.4 per cent.

As a result, market share of the insurance behemoth came down to 70 per cent as against over 75 per cent at the end of last fiscal 2013-14.

During December, LIC added new business of Rs. 5,858.55 crore by underwriting 19.14 lakh policies.

Last fiscal, the state-owned insurer had earned a new business premium of Rs. 90,123.75 crore.

Against this, 23 private sector players registered a 16.6 per cent growth in new premium collection at Rs. 22,110.31 crore during the first nine months as against Rs. 18,951.27 crore in the same period a year ago.

Since the largest player witnessed decline in its business, the total premium collection by 24 players taken together also shrunk by 13 per cent to Rs. 73,777.37 crore as against Rs. 84,725.74 crore during the same period a year ago.

Source - BusinessLine