Life Insurance Corporation of India (LIC) eroded its market share significantly between November 2022 and February 2023.

The market share of India’s largest insurer fell by almost 400 basis points or 4% during the period mentioned. LIC’s market share has dropped from 67.73% at the end of November 2022 to 63.8% at the end of February this year.

Of that 4%, nearly 1% of the market was lost in February.

It is worth noting that the market share considered here is based on the total premiums collected by the life insurance industry. On a positive note, though, LIC still gains 55 basis points in market share between April 2022 and February 2023.

Private life insurers have returned after losing market share to LIC in the year’s first half. All listed private life insurers increased their market share quarter-on-quarter. HDFC Life Insurance gained 19 basis points in market share, followed by ICICI Prudential Life Insurance and Max Life Insurance.

Between January and February, the private life insurance industry gained nearly 100 basis points, or 1%, of market share.

On a year-on-year basis, all private life insurance companies have lost market share so far except SBI Life Insurance. The companies did not regain lost market share until last November.

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

Overall, the private life insurance industry has grown by 400 basis points or 4% market share over the past three months.

Looking ahead, March will be an important month to track, as it will be the last month before new tax rules for life insurance with large savings come into effect.

The market share of life insurance companies can change significantly depending on which company sells more large ticket policies.

Shares of LIC were down 0.9% at Rs 593.40. The stock has fallen 16% so far this year.