The Life Insurance Corporation of India (LICI) Fiji continues to serve a stable number of life insurance policies, with figures typically ranging between 61,000 to 63,000 annually. Each year, around 6,000 to 6,500 new policies are signed, in line with trends shown in previous years. Last year, LICI reported an increase with approximately 6,200 to 6,400 new policies. Notably, August of the current year saw 800 new policies, reflecting a growth from the 650 in the same month last year.
Pradeep Shenoy, the General Manager of LICI Fiji, pointed out that while there has been an increase in new policies over the past five to six years, the total number of serviced policies has largely remained stagnant. Shenoy anticipates that by 2025, LICI might see about 7,000 new policies annually, reflecting a growth rate of 10-15% in new business.
Despite the influx of new policies, a significant number do not continue to maturity. Reasons for this include financial illiteracy within the country, where savings are considered less important than spending. Shenoy notes that approximately 30% of policies are discontinued within two years, with 15-20% not lasting beyond the first year.
However, there seems to be a silver lining; policies with higher premiums tend to remain active, suggesting that individuals who invest more are less likely to terminate their policies prematurely. This trend indicates a broader awareness and understanding of the benefits of life insurance among some segments of the population, even amid financial challenges such as job loss or family issues.
In addition to maintaining policy numbers, LICI is also focusing on technological advancements and community engagement. The company has shifted towards offering electronic policies to improve accessibility and streamline services, which complements its community outreach initiatives through roadshows and service camps.
LICI’s strategic efforts include planning expansions, such as opening new offices and enhancing services in more remote areas like Labasa and Nadi. By adopting digital solutions and remaining engaged with the community, LICI aims to enhance financial literacy and encourage a positive perception of savings and insurance among Fijians, thereby contributing to a more financially stable future.