Insurance Sector in India

with monopoly, the premium rates charged by LIC was among the highest in the world,and its customer service was pathetic. With a huge workforce in the clerical category, LIC runs the risk of high fixed cost,outdated technology which will decide the productivity in the competitive scenario. 80% of LIC's business is procured by 20% of its ill-trained agent force. The foreign player, with the domestic partner through brokers, the Internet, the banking distribution system, etc. Although foreign players keep their operation in the big cities the real market lies in rural India, which accounts for the lion's share of LIC's present business.