The Indian Finance ministry has asked Countries largerst life insurance LIC of India to devise a strategy with a view to focus on young people so that the average age of policyholders can be brought down leading to improvement in bottom line.
The average age of policyholders (of LIC) is very high. It needs to come down.
LIC should bring proper policy and reach out to younger people so that this objective can be achieved.
Average age of insured with LIC is 37 years. Higher average age raises risk for LIC of India. Lower the age of people, the mortality rate such cases are lower.
Thus, it will help the company in improving profitability. The insurer behemoth has a market share of around 81% in terms of new business policies and 71.3% in terms of new business premium the year during 2011-12.
Finance minister Mr. Pranab Mukherjee in a recent meeting with the heads of the public sector insurers had appreciated role of LIC in implementation of social security schemes.
Mr. Pranab Mukherjee said, “I congratulate LIC for being the trust factor among the people. LIC also is successfully implementing Social Security Schemes — ‘Aam Aadmi Bimay Yojana & Janashree Bima Yojana (JBY). I would advise LIC to work out ‘Kisaan Bima Yojana’, a life insurance scheme for the farmers on the lines of JBY where the coverage can be extended up to the age of 65 or 70 years and the additional premium could be borne by the farmers covered under the scheme"
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