Study of Marketing Activities of LIC of India in the Global Competitive Insurance Environment

Abstract

Since Liberalization and a continuous increase in competition from the private life insurance companies (23) in India, LIC’s market share has considerably reduced since 2001. Despite of its servicing to the customers with more than 2000 branches, more than 1.50 Lakh employees and more than 13 Lakh agents, the competition from private players has put LIC in major threat, which has led LIC to take some fruitful marketing steps to retain its market share. LIC has managed to continue as the largest player in India’s life insurance market with achieved market share of 75.55% in F.Y 2013-14. Without getting much affected with the tough competition from the private players, the corporation directly operates through its branch offices nationally as well as internationally in Mauritius, Fiji and United Kingdom. During the year 2012-13 these foreign branches together issued more than 10,985 policies with First Premium Income of almost INR.99.9 Crore. LIC also operate through Joint Venture Companies in Bahrain, Qatar, Kuwait, U.A.E., Oman, Kenya, Saudi Arabia, and Nepal & Sri Lanka.