LIC bets on customer service to stay ahead..

With almost two dozen players fighting for new customers, life insurance market in India has become extremely competitive. Yet, Life Insurance Corporation (LIC), the market leader, has been able to increase its market share from 61 per cent to 65 per cent last fiscal.

According to Mr D.K. Mehrotra, Managing Director, LIC, providing the best of products and services to customers is the key to maintaining market share.

In India, insurance is still a push product. LIC have not reached that level of financial literacy where customers will buy policies on their own. Policies still have to be sold. And the intermediary needs some remuneration for selling the product.

They started the ‘direct channel' last August. This online service was aimed at tech-savvy people who have little time to visit branches.

The first step is ‘lead generation'. When the customer shows interest, it is captured by the server and is passed on to the direct sales executive who approaches the customer. It is a virtual office for the customer.