INSURANCE SECTOR ANALYSIS

1. GROUP PROJECT ON
INSURANCE SECTOR
BY GROUP B9
PRIYANSHU MOHAN
SWARUP BANERJEE
AMAN TEWARI
RUKMINI GANGULY
BHANU PRATAP SINGH

2. OVERVIEW OF THE INSURANCE SECTOR
• WHAT IS INSURANCE?
• EVOLUTION OF INSURANCE
SECTOR.
• REGULATORY BODY-IRDAI.

3. OVERVIEW OF INSURANCE INDUSTRY

4. INDUSTRY ANALYSIS
• MARKET SHARE OF COMPANIES
• SALES OF DIFFERNET COMAPANIES
• PREDICTION FORECAST INDUSTRY
• SWOT ANALYSIS OF INDUSTRY
• PESTEL ANALYSIS OF INDUSTRY
• BCG MATRIX
• PORTER 5 FORCES

5. 67%
7%
6%
5%
15%
LIFE INSURANCE MARKET SHARE 2018
LIC HDFC STANDARD LIFE SBI LIFE INSURANCE ICICI PRUDENTIAL LIFE INSURANCE OTHERS
NEW INDIA
ASSURANCE
15%
UNITED INDIA
INSURANCE
12%
NATIONAL
INSURANCE
COMPANY
11%
ICICI LOMBARD
8%
ORIENTAL
INSURANCE
8%
BAJAJ ALLIANZ
6%
OTHERS
40%
NON LIFE INSURANCE MARKET SHARE 2018

6. 0
5
10
15
20
25
30
35
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
TOTALINSURANCESOLD(INUSDBILLION)
YEAR
Non life insurance sector
0
10
20
30
40
50
60
70
80
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
TOTALINSURANCESOLD(INUSDBILLION)
YEAR
Life insurance sector

7. SWOT ANALYSIS
STENGTHS
• NEW PRODUCT
• RISE IN PER CAPITA INCOME
• BUSINESS GROWTH
• EMERGING MIDDLE INCOME
GROUP
WEAKNESS
• LOW INVESTMENT
• DOMINANCE OF PUBLIC SECTOR
• OLD TARIF STRUCTURE
• LIMITED FACILITIES
OPPORTUNITIES
• CREATION OF STRONGER
DEMAND
• STRONG FUTURE GROWTH
• RISE IN INCOME
• RISE IN AWARENESS
THREATS
• THE POLITICAL ENVIRON ENVIRONMENT
IS NOT CONDUCTIVE TO CONSTRUCTIVE
CHANGE
• DOMINANCE OF ENTRENCHED PLAYERS
WHO MAKE INDUSTRY STAGNATE

8. P- POLITICAL
2015 Amendment bill- FDI from 26% to 49%
Tax Reductions in health insurance in 2015-67%
increment.
Ayushman Bharat Scheme to provide 5 lac Rs.
coverage to 100 million families- union budget
2018-19.
IRDA has allowed 10+ years listed companies to
raise capital through IPO.
E- ECONOMIC
The sector is shifting from monopoly to
oligopoly.
Government has relaxed norms and its easy
to enter but tough to exit.
Industry shifting to non linked traditional
plans and it is growing by 45% yoy.
L-LEGAL
As specified by the regulations under the
provisions of Section 14 (2) of the Insurance
Act, the fee collected shall not exceed Rs 50
(Rupees fifty only)inclusive of all applicable
taxes, while the above the fee collected shall
not exceed Rs 100. No other fee shall be
collected for rendering any other services
S-SOCIAL
High net worth households would grow at at
a CAGR of about 21.5%. By the end of 2025,
global HNWI wealth is estimated to grow to
over USD100 trillion.
Rural credit segment is a large market, which
can be tapped by ensuring timely loans .
E-ENVIRONMENTAL
The employment rate is increasing as a result
of increasing no. of companies.
Consumers are gaining more options due to
the competition in the market.
More focus on the women and handicapped
section of the society-taping the unreached
market.
TECHNOLOGY
Companies are focusing on customized plans.
Technologies like cloud computing are being used by SBI life.
Investing in technologies like internet banking, IOT- user
friendly EXPERIENCE.
As per Gartner Inc, the insurance sector is estimated to
spend about USD2.15 billion on IT products and services in
2016, up 9.6% from 2015
PESTEL ANALYSIS
OF INSURANCE
SECTOR

9. COMPETITIVE RIVALRY
1. There are 13 private
players and 1 PSU in the
life insurance sector.
2.Identical offerings of all
the companies- very less
differentiation.
3.Ministry of finance
controls the sector- very
tough to leave the
market.
POWER OF SUPPLIERS
1. Bargaining leverage- Nil.
2.Tax exemption- suppliers
bargaining power increases.
3.Uncertainty of private
player's solvency.
THREATS OF NEW ENTRANTS
1. Acceptance of new brands-
very low.
2.Special permission from GOI.
3.Economies of scale very
difficult in initial years.
4.Existing Brand loyalty- very
high.
5.Fixed returns-basic taste of
indian customers.
POWER OF BUYER
1. Volatility- very high.
2. Lack of trust in major players.
3. Exercise bargaining leverage
over premium.
4.High switching cost- buyers get
locked in.
THREATS OF SUBSTITUTES
1. FD and gold
investments-promising
returns.
2.Government securities.
3.Share markets- high
returns.
POSTER’S FIVE
FORCES FOR
INSURANCE
SECTOR

10. LIC
HDFC
SBI LIFE
ICICI PRU
-45
-40
-35
-30
-25
-20
-15
-10
-5
0
5
10
-2 -1.5 -1 -0.5 0 0.5 1 1.5
GROWTHRATE
RMS
BCG matrix of life insurance companies in 2018
Series1 Series2 Series3 Series4

11. MAJOR INDUSTRY PLAYERS
• Life Insurance Corporation of India.
• Tata AIG General Insurance.
• HDFC Life Insurance
• Bajaj Allianz General Insurance.
• New India Assurance.
• ICICI Prudential Life Insurance.
• IFFCO TOKIO General Insurance.
• ICICI Lombard General Insurance.
• Oriental Insurance.

12. 1.ORIGINAL OF LIC.
2.GENRAL INFORMATION ABOUT THE COMAPANY.
3.FINANCIAL INFORMATION ABOUT THE COMPANY.
4.TYPES OF PRODUCTS LIC SELL.
5. WHY LIC IS BIG?

13. Life insurance,Health,Property,
Auto, credit, mutual fund
insurance.
ULIP, group schemes to cater to
higher returns taste.
Settlement ratio is 97%-highest in
the life insurance sector.
Single endowment plans-majority
Varied range of price.
Mode of premium payment-
Cash,DD,Cheque,net banking.
Different tax rates for
different products.
8 zonal office,113 divisional
office,2048 branch office,1381
satellite office.
The new initiative called 'Satellite
Sampark' offices have been opened
for easy access to policy holders.
IVRS, Call centers, Customer
zone, SMS, e-mail, website and
social networking sites, media.
Tagline- ZINDGI KE SATH
BHI,ZINDGI KE BAAD BHI.
First insurance to include 3rd
gender option.
PRICEPRODUCT
PROMOTIONPLACE

14. 1.ORIGINAL OF HDFC LIFE .
2.GENRAL INFORMATION ABOUT THE COMAPANY.
3.FINANCIAL INFORMATION ABOUT THE COMPANY.
4.TYPES OF PRODUCTS HDFC LIFE SELL.
5. WHY HDFC IS SO BIG IN LIFE INSURANCE SECTOR?

15. Technologically user friendly plans.
Each plan has a relatively higher
coverage as compared to LIC as
they are market linked plans.
Most of the plans are targeted to
benefit the youth.
Premium pay by net banking,
credit and debit
cards,cheque,cash,NEFT,Bill Pay
etc.
Plans are cheaper than LIC.
The minimum assured amount is
more than LIC in all related
policies.
.
First private player to enter
the Indian insurance market.
'Respect yourself" gives a
sense of pride among the
youth.
Tagline- "Sar Utha Ke Jiyo".
EVA- an artificial intelligence
based Chatbot assistant .
customers and non-customers
can complete transactions
through FB messenger
PRODUCT PRICE
PLACE PROMOTION

16. CURRENT SCENARIO
• AFTER LIBERALIZATION AND
PRIVATIZATION
• ROLE OF INFORMATION TECNOLOGY
• PRODUCT INOVATION
• MODERN MARKETING APPROACH

17. THANK YOU