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The seasons of Indian life insurance                          •    How well do you know                               your...
Sure, it pours in March every year.               But do you know:•Which month always has second-highest sales?•Is there a...
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...
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: U...
In Indian life insurance, which skews          more: individual or group?•    Options: Individual; Group; Similar
In Indian life insurance, which skews          more: individual or group?•    Options: Individual; Group; Similar•    Answ...
Are the skews the same for regular or              single premium?•     Options: Single premium; Non-single; They are simi...
Are the skews the same for regular or              single premium?•     Options: Single premium; Non-single; They are simi...
Has the skew changed over time from            2006 to 2011?• Options: Yes, it has become less; No, it has not changed.
Has the skew changed over time from            2006 to 2011?• Options: Yes, it has become less; No, it has not changed.• A...
Which company has the highest skew           in March?
Which company has the highest skew               in March?•               IndiaFirst, consistently, with 63% and 43% of it...
•            Note that the huge March skew of India First is             driven by Group Regular business in each year.100...
Which company has the lowest skew           in March?
Which company has the lowest skew                   in March?  •         Max Life: It has 2 comparable sales peaks – one i...
This pattern is consistent across years       Note: the quarterly waves!25%20%15%10%5%0%      Apr   May   Jun        Jul  ...
Seasonality measurements need to           take into account•    Options:      –   Rate of annual growth/decline      –   ...
Seasonality measurements need to           take into account•    Options:      –   Rate of annual growth/decline      –   ...
You can use your companys           SEASONALITY INDEX for•   Options:      –    Performance assessment      –    Predictin...
You can use your companys           SEASONALITY INDEX for•   Options:      –    Performance assessment      –    Predictin...
Seasonal insurance sales             25%             20%                                                                  ...
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The seasons of Indian life insurance

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How well do you know the seasons of Indian life insurance?
Does your guess/ intuition match the data? What do the charts tell?
Can you use that knowledge to run the business operations more profitably?

Published in: Business, Economy & Finance
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The seasons of Indian life insurance

  1. 1. 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)
  2. 2. 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.Source: www.irda.gov.in; Note: Sales = Annualised First Year Premiums
  3. 3. Which month always has the second-highest sales?• Options: Feb; Jan; Dec; Nov.; None of the above.
  4. 4. 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
  5. 5. The March sales skew: is it usuallysharper for LIC or for private insurers?• Options: LIC; Private Insurers
  6. 6. 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
  7. 7. In Indian life insurance, which skews more: individual or group?• Options: Individual; Group; Similar
  8. 8. In Indian life insurance, which skews more: individual or group?• Options: Individual; Group; Similar• Answer: On an average, group business especially historically. More on it later! 30% 25% 20% Group 15% Individual 10% 5% 0% Average March sales
  9. 9. Are the skews the same for regular or single premium?• Options: Single premium; Non-single; They are similar
  10. 10. Are the skews the same for regular or single premium?• Options: Single premium; Non-single; They are similar• Answer: On an average, across years, the group business has a greater skew for regular business; but the individual business is equally skewed for both! 35% 30% 25% 20% 15% 10% 5% Group Non-Single Premium Group Single Premium 0% Individual Non-Single Premium Average Individual Single Premium
  11. 11. Has the skew changed over time from 2006 to 2011?• Options: Yes, it has become less; No, it has not changed.
  12. 12. Has the skew changed over time from 2006 to 2011?• Options: Yes, it has become less; No, it has not changed.• Answer: Across years -10-11 and 11-12 - the group business skew has reduced greatly; but the individual business has changed only a little. 45% 40% 35% 30% 25% Group 20% Individual 15% 10% 5% 0% 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
  13. 13. Which company has the highest skew in March?
  14. 14. Which company has the highest skew in March?• IndiaFirst, consistently, with 63% and 43% of its new business in March in 11-12 and 10-11. – Note: The nearest highest skew is just 29%. 70% 60% 50% 40% IndiaFirst – 2010 30% IndiaFirst – 2011 Industry average 20% 10% 0% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
  15. 15. • Note that the huge March skew of India First is driven by Group Regular business in each year.100%90%80%70% 2010 - Group Non-Single Premium 2010 - Group Single Premium 2010 - Individual Non-Single Premium 2010 - Individual Single Premium60% 2011 -Group Non-Single Premium 2011 -Group Single Premium 2011 -Individual Non-Single Premium 2011 -Individual Single Premium50%40%30%20%10% 0% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
  16. 16. Which company has the lowest skew in March?
  17. 17. Which company has the lowest skew in March? • Max Life: It has 2 comparable sales peaks – one in December and one in March. The sales push in March is lowered by the sales push in December!25%20%15% Max Life – average Industry average10%5%0% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
  18. 18. This pattern is consistent across years Note: the quarterly waves!25%20%15%10%5%0% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Max – 2006-07 Max – 2007-08 Max – 2008-09 Max – 2009-10 Max – 2010-11 Max – 2011-12
  19. 19. Seasonality measurements need to take into account• Options: – Rate of annual growth/decline – Regulatory changes – Management changes – All of the above
  20. 20. 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
  21. 21. You can use your companys SEASONALITY INDEX 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
  22. 22. You can use your companys SEASONALITY INDEX 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.
  23. 23. Seasonal insurance sales 25% 20% 2006-07 2007-08 2008-09 15% 2009-10 2010-11% of sales 2011-12 10% Industry 5% 0% Thank You Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Months Presented by: IBEXI Met Department ( IBEXI Analytics and BI team) © IBEXI Solutions Pvt. Ltd. .

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