The government may look at the listing of Life Insurance Corporation (LIC), the public sector insurance giant, as part of the Modi 2.0 next big reforms.
“The government is exploring legal opinion on the amendment of LIC Act for public listing,”
ETNow reported quoting sources.
LIC holds two-thirds share of India’s huge life insurance market .
ETNow reported that talks on listing of LIC are at an early stage and an IPO may be planned going forward.
It said the government was looking at two different ways on the listing of LIC: A public listing will make it transparent and better run while at the same time it will also turn the insurer bottomline-focused and make it hard to bring down life insurance policy premiums.
The Department of Investment and Public Asset Management (DIPAM) and DFS are exploring the for and against of listing the insurance company.
Insurance companies like ICICI Prudential Life Insurance, ICICI Lombard General Insurance, SBI Insurance, General Insurance Corporation of India and HDFC Life Insurance have already got listed on the stock market.
June data showed the LIC of India witnessed more than two-fold jump in new premium collection to Rs 26,030.16 crore, up from Rs 11,167.82 crore in the same period last year. With this high growth in business, the market share of the insurance giant increased to 74 per cent.
Remaining 26 per cent is shared by rest of the 23 private players operating in the space. LIC sold 13.32 lakh policies in June to collect over Rs 25,000 crore in just one month.
Private sector insurance companies witnessed an increase of 14.10 per cent in their collective new year business premium at Rs 6,211.17 crore in June, as compared to Rs 5,443.75 crore collected in the year-ago month.
By: Abhinav Ranjan, Editorial Desk, DKODING Media