Professional Documents
Culture Documents
Life Insuradustrynce in
Life Insuradustrynce in
Life Insuradustrynce in
Gopalakrishnan.C
Contents
Key Points Major IT players SWOT Mobility in Insurance Key player profiles
Over two-thirds of total revenue is collected from industrial buyers significantly higher than the average in most developed economies.
The industry is highly concentrated & is still heavily dominated by the state-owned Life Insurance Corporation of India (LIC)
Life Insurance & Pension Funding are the key products offered in this sector
Threats
inefficient underwriting practices Price competition Redefined regulatory changes in F2011 Distributors Leaving business due to sharp fall in ULIP Adverse Macro Environment Volatile Market, Inflation
Emerging Trends
Emergence of new Channels Private Players Innovative Products
BAncassurance NBFCs NGOs
Increasing Market share of Private Market awareness Rising Mergers & JVs Affluent middle class
Competitive Landscape
Buyer PowerModerate
Substitutes
Lack of Close Substitutes Higher no. of industrial customers High Switching cost for Individual Consumers
Complex Processing systems High Switching Costs Forward Integration is difficult Supplier Training Cost
Capital Intensive Highly monopolized business Strength of Channel High Exit costs by regulator
Lack of close Substitutes Protection offered by Life insurance is high Reliability of the alternates
Regulatory Landscape
Proposal to maintain minimum premium payment term at 5 years Cap for maximum commission IRDA -new product phasing out products guaranteeing highest NAV. designing minimum sum assured for traditional products guidelines
Impact
Negative Impact on Insurers with less products Positive impact on Insurers with more products Change of the product portfolio
Across the globe, Mobility Solutions have been predominantly adopted across the following stakeholders Customer Claims submission, photos upload Quote Generation and locating agents Status Updates-claims, policies Premium Billing and Payments Sales promotions E-mail, Alerts, SMS etc Agent Quote Generation, retrieving real time policy data Policy, Commission status updates Real-time access to email, calendar Alerts, Broadcast, Messages about new
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12.0
Life Non-Life
The Indian Insurance Industry needs to embrace Mobility Solutions because There is a large market to be tapped out there both in Life and Non-life Insurance has to keep pace with the giant strides made by other industries vis--vis enhancing customer experience Insurance can not be oblivious to the rapid developments in telecommunication technology that India has been witnessing in recent years Personal insurance space life, motor, accident, health, etc. is likely to witness record growth numbers. It is virtually impossible to capitalise on it unless insurers employ technology in reaching out to millions of individuals
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Insurance Mobility Solutions in India neither justifies the market potential nor the technology at its disposal However, there have been some prime movers when it comes to adoption of mobility solutions Insurer Field Force Access to front-end application system in the offline mode offered by IFFCO Tokio General Insurance Company Ltd to its field force Customer Bill payments over telephone using a credit card introduced by ICICI Lombard in 2008
Agent Access to front-end application system in the offline mode offered by IFFCO Tokio General Insurance Company Ltd to its field force
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WHY Mobility?
Operational challenges for Insurers Opportunities for leveraging Mobility Solutions
Cost of Service Customer acquisition and service costs
Need for increased focus on rural markets distribution Challenge of Low premiums & large volumes customers need for cost-effective distribution channel Fierce competition for urban pie challenge of business growth & retention Large manual processes with multiple handoffs- Lack of straight through processing & paper based leading to higher overheads
Extensive Manual Handling Low usage of Web SelfService Limited Access to Information
Need for customer awareness will help lower transaction cost Mobile access to operational information is limited Web-to-Mobile conversion is not in place
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Branding
Branding opportunity
Immediate opportunity : Cost Reduction and Customer Experience hold the most near-term promise Medium terms : Revenue Growth contributes as stakeholders & consumers change their habits to favor mobile transactions
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Where
Customer
Make payment
Intermediary
Receive payment
Contact existing customers to identify additional needs Communicate Multipolicy Discounts Communicate referral incentives for existing customers
Issue quote
Insurance company
Analyse proposal
END
Contact intermediary / existing customers to identify additional needs Communicate Multipolicy Discounts Communicate referral incentives for existing customers
Possible Points of usage of Mobility Solutions in the New Business Sales Process
Customer
Make payment
Intermediary
Receive payment
No
END
Insurance company
Analyse proposal
UW required? Yes
Yes
Proposal acceptable
No
Assessment
Right information at hand of coverage & policy helps assessment & reduces site visits
Repair
Negotiation
Claimant
Insurance company
Right scheduling affects efficiency of adjustor & satisfaction of customer
Loss Adjustor
Conducts assessment & sends report Advices rental car company for customer
Yes
Workshop
Ability to settle small claims to customer at site reduces cost & effort
Insurer
Improved operational effectiveness and efficiency Reduced cycle time for sales and claims processes Increased retention of agents Higher customer satisfaction and retention Stronger brand value and competitive edge
convenient
Fast and seamless support from Insurance company service providers Superior customer service with faster response time
improved operational
efficiencies Enhanced productivity Faster quote issuance due to greater access to leads and customer information Seamless information access and self-service support across the Claims/Customer value chain
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Financials
Largest Life Insurer in India 71.4% market share
2011(x1000 INR) Net worth 403736000 OPEX 1.698E+10 Total Assets 1.3174E+12 NBP 38.40% IT Expenses 927084900
Systems landscape
EPS: Enterprise Portal System
Application Server: Oracle WebLogic Portal 10.3.2 (11g R2) (64 bit) Operating System: Red Hat Linux AS 5.4 (64 bit) Database: Oracle Enterprise Edition 10g with RAC (64 bit) Application: J2EE platform
SBI life
Individual Plans
Unit Linked Plans Special Protection Plans
Financials
Second largest player with a market share of 19.22% as on March 2011
2011(x1000 INR) Net worth 16,297,016 OPEX 15,545,123 Total Assets 395,258,108 NBP growth 7% IT Expenses 239,053
Systems landscape
Shift from Vendor TCS to Credence iDeal
Recent IT initiatives
efforts to make IT system secure and process driven Integrated Dealing Solution in Dealing room Integrated Treasury system solution in 2009 Mobile payments and viewing of details
Bajaj Allianz
Unit Linked Traditional Plans Life + Health plans Term Plans Women Plans Group Life Insurance Micro Insurance
Financials
Market share of New Business premium 8.3%
(X 1000 INR) Net worth OPEX Total Assets NBP IT Expenses 2012 35,606,071 14,062,756 394,485,970 27,200,000 572,420 2011 22,494,057 16,065,847 392,749,002 34700000 232,010
Systems landscape
GIOS (Global Insurance Operating Solution) Opus Software vendor - CGI
ICICI Prudential
Unit Linked Plans Traditional Plans Group Plans Term Plans Micro Insurance
Financials
ICICI prudential has a market share of 6.2% which shrunk to 4.4% in 2012
Systems landscape
BMC Software's Control-M, work automation & integration KASTLE Banking Solutions of 3i infotech
Systems Landscape
HDFC life
Term Plans Women Insurance Savings & investment Plan Micro& group Insurances The company has adopted customer segmentation approach for designing new products & identified 3 segments
Young Aspirant, Wisdom Investor Urban Woman
Systems Landscape
Maia 1key for CRM ATLAS-Agency training software
Reliance
Individual plans Savings and Investment plans Group Insurance The company has lowered the number of agents in order to focus on productivity and performance Product mix sifted towards traditional products with 70% share
Financial data
Ranked number 1, in terms of Individual premium policies sold during FY12 Have infused fresh capital of Rs 3bn in 2012 Have recorded Rs 3.7bn PAT during FY12
Recent Trends
Reliance Insurance (RGICL) partnered with GoDB Tech, for the development of a mobile insurance point of sale (M-POS) application enterprise mobility solutions