The Hindu Business Line : Market volatility on ULIPs slows LIC business

Kolkata, Sept. 1 The sale of unit linked policies (ULIPs) by the eastern zone of Life Insurance Corporation of India has started to pick up from August, with the segment contributing 40-50 per cent of its total business.

An LIC official said here on Monday that the stock market volatility had considerably slowed down the corporation’s business through ULIPs, during the first quarter, accounting for only 25-30 per cent of total business, he added.

“The ULIP market is again picking up with the people starting to regain confidence in it,” he said. These policies used to contribute nearly 80 per cent of LIC’s business before the dip in stock market this year.

Policy sales

The eastern zone of LIC registered a 20-per cent drop in business — both in terms of number of policy sold as well as first premium income as on August 30, this year.

The zone has sold 11,75,000 policies during the period, against 15 lakh over the same period last year.

It clocked first premium income of Rs 907 crore during the period (Rs 1,100 crore).

“The business had slowed down mainly due to the impact of the market volatility on performance of ULIPs,” said Mr R.R. Dash, Zonal Head.

The zone has a target of selling 52.5 lakh policies and earning Rs 5,500 crore first premium income this year.

Recruitment

LIC is planning to recruit 474 development officers and 347 class III employees in the eastern zone this year, Mr Dash said.

The agent base is expected to go up by 30 per cent from the current 1.48 lakh agents in the zone.

There are also plans to open 45 satellite offices this year, he added.

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