The Life Insurance Corporation of India (LICI) in Fiji has maintained a steady number of life insurance policies, consistently serving between 61,000 and 63,000 policies annually. Despite the stable overall number of serviced policies, LICI has reported encouraging growth in new policy signings each year, aligning with historical trends. Last year, new policies increased, with figures ranging from 6,200 to 6,400. August of this year saw a further rise with 800 new policies, an improvement over the 650 from the same period last year.
Pradeep Shenoy, LICI Fiji’s General Manager, highlighted an increasing trend in new policy acquisitions over the past five to six years. Shenoy projects that by 2025, LICI might reach approximately 7,000 new policies annually, indicating a growth rate of 10-15% in new business. Despite the influx of new policies, a significant portion does not continue to maturity. This issue is partly attributed to financial illiteracy, where immediate spending is often prioritized over long-term savings. Roughly 30% of policies lapse within two years, with 15-20% discontinuing within the first year.
Interestingly, policies with higher premiums show a stronger tendency to remain active. This trend suggests that individuals investing more substantial amounts are more committed to maintaining their policies, indicating a growing recognition of the significance of life insurance among some segments, despite financial challenges like job losses or family issues.
LICI is not only focused on maintaining its policy numbers but is also keen on enhancing its service offerings. This includes embracing technological advancements by providing electronic policies, making them more accessible, and simplifying services. Moreover, the company is actively engaging with the community through initiatives like roadshows and service camps to strengthen its outreach.
Strategically, LICI has plans to expand its footprint by opening new offices and improving services in remote areas such as Labasa and Nadi. By incorporating digital solutions and fostering community engagement, LICI aims to elevate financial literacy levels and promote the value of savings and insurance among Fijians, contributing to a more financially stable future.