Transcript of "The seasons of Indian life insurance - a sample"
The seasons of Indian life insurance • How well do you know your seasons? • Can you use that knowledge to run the business operations more profitably? Presented by: IBEXI Met Department ( IBEXI Analytics and BI team)
Sure, it pours in March every year. But do you know:•Which month always has second-highest sales?•Is there a greater skew for group vs.individuals?•For single premium or regularpremiums?•Has the skew changed over the lastfew years?•Are there outlier companies? Whatdo they tell us? • Does your guess/ intuition•How can a company use its match the data?seasonality index? • Check it out.
Which month always has the second-highest sales?• Options: Feb; Jan; Dec; Nov.; None of the above.
Which month always has the second-highest sales?• Options: Feb; Jan; Dec; Nov.; None of the above.• Answer: None of the above. – It varies from year to year! In 2006-07, it was November. In 07-08 and 08-09, it was January. In 09-10, it was December. In 10-11, it was August! And it was back to January in 11-12. 25% 20% 15% 10% 5% 0% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
The March sales skew: is it usuallysharper for LIC or for private insurers?• Options: LIC; Private Insurers
The March sales skew: is it usuallysharper for LIC or for private insurers?• Options: LIC; Private Insurers• Answer: Usually, and on the average, private insurers have a sharper March skew than LIC. 30% 25% 20% 15% Private LIC 10% 5% 0% 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Average
Seasonality measurements need to take into account• Options: – Rate of annual growth/decline – Regulatory changes – Management changes – All of the above• Answer: All of the above
Seasonality index can be used for• Options: – Performance assessment – Predicting future trends – Planning for temp staff for March operations – Understanding impact of product launches. – Deciding when to launch advertisement campaigns. – All of the above• Answer: All of the above – Performance assessment should be relative to the normal seasonal variation. So we should set targets by season to achieve annual targets. – Predicting future trends e.g. sales figures for the rest of the year. – Planning for temporary increases or decreases in staff, space etc. to manage predictable peaks e.g. additional staff for March operations support – To eliminate it for analysis of other effects, e.g. advertisements, product launches. – Make operational decisions for seasons – pricing, advertisements etc.