LIC restructures strategy after Irdai proposal, readies for IDBI sale
LIC is shaking up its strategy after India's insurance regulator, the Insurance Regulatory and Development Authority of India, or Irdai, proposed new rules on how policies are sold.
The company is leaning on its low costs and a wide network to stay ahead, even as it prepares for the sale of IDBI Bank, its biggest partner for selling insurance through banks.
LIC says it is already taking steps to keep its bank partnerships strong.
CEO R Doraiswamy prioritizes agent protection
LIC's CEO and managing director R Doraiswamy points out that its cost advantage makes it tough for rivals to compete unless they seriously cut expenses.
With IDBI Bank soon being sold, LIC is teaming up with more lenders so it does not miss a beat.
Hemant Buch, executive director, marketing, bancassurance and alternate channels, shared that IDBI now brings in only about 20% of LIC's bank business, down from 50%.
Even with Irdai pushing for lower commissions and costs, Doraiswamy says protecting agents' interests within the regulatory framework is a top priority.