3. ULIPs are Unit Linked Insurance Plans. Also addressed as wealth insurance plans.
It is a package of financial solutions that ensure returns on your investment.
They are innovative forms of life insurance that provide safety of your insurance
cover with wealth enhancement opportunities.
ULIPs also provide good cover against death.
They also serve as means for long term savings that gives maximum benefits.
In ULIP, some part of your investment is reserved in life protection cover and the
rest is invested in funds like stocks and bonds.
In simple terms, ULIP are a combination package of life cover and investment.
5. The different types or
categories of Ulip Plans
include the following:
- Retirement
Plans
- Wealth Plans
- Child
Education
Plans
- Health Plans
Based on life’s
priority, one can
invest in any of
the above ULIPs
accordingly.
Best ULIPs are the
ones that give you
appropriate life
cover, better fund
option and a long
period investment.
6. Existing market Share Of ULIP
Products
The share of unit-linked products in total premium
declined considerably to 11.95 per cent in 2013-14 as
against 16.98 per cent in 2012-13
7. Growth for last five years
2010-11 Rs. 1,09,036 Cr
2011-12 Rs. 69,650 Cr (decline by 36.12%)
2012-13 Rs. 48,830 Cr (decline by 29.89%)
2013-14 Rs. 37,547 Cr (decline by 23.02%)
(Source: Annual Report IRDA)
8. Growth projections for next five
years
As we have seen the trends of previous years in last slide
that the ULIP market is falling year after year with no
positive sign so we can say that in future also there are
very less chances for growth of ULIP market and this
market will probably come more down if following the
recent trends.
9. Major four Players of Insurance
Sector
April-Sept
2013(in Cr)
April-Sept
2014(in Cr)
% change
LIC 37,906.37 35833.41 -5.5
ICICI Prudential 1,625.35 2225.18 36.9
MAX Life 902.83 1038.14 15
MET Life 297.64 306.68 3
Source: Economic Times
10. Major products and comparison
Insurance
Company
Plans Term Maturity Age
LIC Money Plus 5-30 yr 18-75 yr
ICICI Prudential Life Stage RP 10-75 yr 19-75 yr
Max Life Life Maker
Platinum
10-58 yr 70 yr
Met Life Met Smart
Premier-RP
10-30 yr 20-50 yr
18. Porter's 5 Forces Model
Threat of New Entrants. The average entrepreneur
can't come along and start a large insurance company.
The threat of new entrants lies within the insurance
industry itself.
Power of Suppliers. The suppliers of capital might
not pose a big threat, but the threat of suppliers luring
away human capital does.
Power of Buyers. The individual doesn't pose much
of a threat to the insurance industry. Large corporate
clients have a lot more bargaining power with
insurance companies
19. Porter's 5 Forces Model
Availability of Substitutes. This one is pretty straight
forward, for there are plenty of substitutes in the
insurance industry. Most large insurance companies
offer similar suites of services.
Competitive Rivalry. The insurance industry is
becoming highly competitive. The difference between
one insurance company and another is usually not that
great. As a result, insurance has become more like a
commodity - an area in which the insurance company
with the low cost structure, greater efficiency and
better customer service will beat out competitors.
20. Sales Strategy of two major players
LIC
LIC has taken help of advertising agencies to promote
Brand LIC.
They use creative slogans which affects customer’s
mindset and able to attract their attention.
These slogans help LIC to make the customer
emotionally attached to services provided by them.
They spend huge amount of money in advertising and
sales promotion to build their brand equity and
identity.
