Economic Survey 2024: FM Sitharaman praises Life Insurance Corporation while sharing these IRDAI findings

1. Financial Performance:
   • Profitability: LIC’s consistent profitability over the years, reflecting its effective management of investments and underwriting practices.
   • Asset Quality: Sound asset quality with a diversified investment portfolio that balances risk and return.
2. Market Presence and Reach:
   • Market Share: LIC’s dominant position in the life insurance market, both in terms of premium income and policyholder base.
   • Geographical Reach: Extensive branch network and presence across urban and rural areas, facilitating greater access to insurance products.
3. Customer Service and Satisfaction:
   • Claims Settlement: High rate of claims settlement, indicating prompt and fair resolution of claims for policyholders.
   • Customer Feedback: Positive feedback and satisfaction levels among policyholders, reflecting trust and reliability in LIC’s services.
4. Innovation and Product Development:
   • Product Diversity: Range of insurance products catering to various customer needs, including traditional plans, unit-linked plans, and pension schemes.
   • Digital Initiatives: Adoption of digital technologies to enhance customer experience and streamline operations.
5. Regulatory Compliance and Governance:
   • Compliance Standards: Adherence to IRDAI regulations and guidelines concerning solvency margins, investment norms, and customer protection.
   • Governance Practices: Strong corporate governance framework ensuring transparency, accountability, and ethical practices.
6. Role in Economic Development:
   • Investment in Infrastructure: Contribution to economic growth through investments in infrastructure projects and government securities.
   • Employment Generation: Direct and indirect employment opportunities created through its operations and expansion.
7. Future Outlook and Challenges:
   • Growth Prospects: Potential for further growth in insurance penetration and market expansion.
   • Challenges: Addressing emerging risks such as technological disruptions, changing customer expectations, and regulatory developments.

These detailed aspects provide a comprehensive picture of LIC’s strengths and contributions to the Indian economy, underscoring its significance as a key player in the insurance sector, as highlighted in the Economic Survey of 2024.