India's largest life insurance company has lost 4% market share in the last three months

It is important to note that the market share taken for consideration here is based on the total insurance premium collected by the life insurance industry. On the positive side though, LIC is still sitting with a market share gain of 55 basis points between April 2022 and February 2023.

From losing market share to LIC in the first half of the year, private life insurance companies have made a comeback. All listed private life insurance companies gained market share on a month-on-month (MoM) basis with HDFC Life Insurance seeing a growth of 19 basis points in its market share followed by ICICI Prudential Life Insurance and Max Life Insurance.

The private life insurance industry gained market share of almost 100 bps or 1 percent between January and February.

So far, on a year-to-month basis, except SBI Life Insurance, all private life insurance companies have lost market share. It is only since November that these companies started regaining their lost market share.

Since November 2022, SBI Life Insurance gained market share of 89 basis points followed by HDFC Life Insurance, which gained market share of 72 basis points.

Overall the private life insurance industry gained 400 bps or 4 percent market share in the last three months.

Going forward, March will be an important month to track as it would be the last month before the new taxation rules on large ticket savings life insurance kicks in.

Market share amongst life insurance companies could move significantly depending on which company sells more of the large ticket policies.

Shares of LIC are trading 0.9 percent lower at Rs 593.40. The stock has declined 16 percent so far this year.