A few days ago, there were some reports that the Insurance sector will get a boost and some very big announcements will be made in Budget 2020. Having said that, which companies are going to get more benefit on Budget 2020? Life Insurance Corporation (LIC) or private insurers?
According to Sandeep Grover, expert, There are bigger announcements expected under section 80C. He said, “We are expecting that this budget government may introduce separate provision under 80c. Its going to be a very big step for the betterment of insurance companies, especially with life insurance ones.” The situation of the insurance companies has improved, whenever you talk about life insurance companies, most of the time LIC comes in our mind but if you analyze the data of private insurance companies, their performance has improved a lot. Here’s how?
— Zee Business (@ZeeBusiness) January 24, 2020
CLAIM SETTLEMENT TREND: LIC VS PRIVATE
The data says that the claim settlement trend in FY19 was 97.79% with LIC, but with private company its 96.64%. The claim settlement trend of LIC is stronger but if you look at the data you can see neck to neck fight with private companies.
PREMIUM: LIC VS PRIVATE
We also look for those insurance companies where we need to give less premium and expect maximum coverage. If you draw a comparison between LIC and private insurance companies, You can expect more from private companies. Suppose, If you want to take 1 crore of insurance at the age of 30 in LIC then you have to pay 14000 premium but in case of Kotak Life, you just have to give Rs 9200.
GROWTH POTENTIAL: LIC VS PRIVATE
Around 75% of the population of the country does not have life insurance. So the growth potential is higher with private companies than LIC. They have performed extraordinarily over the past few years. According to revenue growth data, HDFC, ICICI Pru and SBI Life are topping the charts and have delivered over 100 % growth.