The popularity of IPOs (Initial Public Offerings) has been going through the roof nowadays.
The keyword word “Latest IPO” threw up 16.8 crore search results on Google in just 0.51 seconds.
But isn’t it startling that even a query for “LIC IPO” also fetched 1.63 crore results within 0.43 seconds on Google’s search engine? Indeed, LIC IPO is one of the most sought-after amongst the upcoming IPOs.
Life Insurance Corporation (LIC) is India’s largest life insurance company and thus a household name. As disclosed by LIC, 75% of the new life insurance policies issued in India in 2021 belonged to LIC of India. This seems to be the primary reason for LIC IPO being all the rage.
Moreover, IPO-bound LIC was the world’s 3rd strongest and 10th most valued life insurance brand in 2021, according to Brand Finance—a leading brand valuation consultancy globally.
Brand Finance valued the LIC brand at Rs 63,446.2 crore in 2021. Brand value of LIC essentially reflects its trademark value, including that of the marketing Intellectual Properties (IPs), going by the methodology discussed by Brand Finance.
To arrive at the brand strengths, Brand Finance uses three criteria namely—marketing investment, stakeholder equity, and business performance. It is noteworthy that at a time when some of the largest insurance brands have taken a hit during the pandemic, LIC brand has shown improvements in its positioning.
Such high brand equity might have put IPO-bound LIC on the map of global investors already.
LIC has grown through a monopoly, some may argue but that doesn’t seem to be the case.
LIC isn’t loosening its grip on the life insurance market despite the two-decades of co-existence with private sector insurers. In its six decades of existence, LIC overhauled business operations and tweaked strategies regularly to respond effectively to the rapidly changing socio-economic and business landscape of India.
LIC of India not only embraced the latest technologies from time to time but also developed a unique business model revolving around phygital strategies. The corporation’s large agent base helped it reach out to customers in the remotest areas and investments in technologies helped in serving them well.
LIC’s share in the branch network of the entire life insurance sector is 45% and 94% of its new business in the individual category comes from individual agents.
Effective brand communication and equally flawless delivery of services seems to be the secret mantra of LIC of India. As you may know, Yogakshemam Vahamyaham (योगक्षेमं वहाम्यहम्) has been its guiding principle.
According to Verse 22, Chapter 9 of Shrimad Bhagavad Gita, the almighty assures devotees who revere God without expecting anything in return that God will always guide them on the path of attainment and protect all their means in this journey.
अनन्याश्चिन्तयन्तो मां ये जना: पर्युपासते | तेषां नित्याभियुक्तानां योगक्षेमं वहाम्यहम् ||22||
LIC seems to have taken a leaf out of Bhagavad Gita to demonstrate its commitment to its policyholders and their family members in helping them achieve life goals irrespective of eventualities.
The claim settlement ratio of 98.62% in FY21 speaks volumes about India’s largest life insurance company, LIC.
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You may also like to read: Applying for an IPO? One lot is a lot!
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