A Presentation on INSURANCE

INDUSTRY

Presented by,
Group 3
Stevens Business School
SEM-2
 Insurance
• Introduction
• Types
• Market shares
• Products
• Media Preference
• Major players in Insurance Industry
• Competitions in Insurance Industry
 Introduction
• Insurance = collective bearing of risk
• Basic human trait is to be averse to the idea of
risk taking.
• Insurance whether life or non life it provides
people with reasonable degree of security and
assurance that they will be protected in the
event of a calamity or failure of any sort.
 Types

INSURANCE

GENERAL LIFE INSURANCE

INSURANCE

FIRE MARINE MOTOR

MEDICLAIM
INSURANCE INSURANCE VEHICLE
• Life insurance
is a written contract between the insured and the
insurer, that provides for the payment of the insured sum on the
date of the maturity of the contract or on the unfortunate
death of the insured, whichever occurs earlier.
• General insurance or non-life
insurance policies, including automobile and homeowners
policies, provide payments depending on the loss from a
particular financial event. General insurance typically comprises
any insurance that is not determined to be Life Insurance.
 Main Objectives
• Maximize mobilization of people's savings by
making insurance-linked savings adequately
attractive.
• Conduct business with utmost economy and
with the full realization that the moneys
belong to the policyholders.
• Act as trustees of the insured public in their
individual and collective capacities.
 Major Players Of LI And their Market Share

COMPANIES MARKET SHARE (%)2010

LIC 48.3
ICICI Prudential 13.7
BAJAJ LIC 10.3
SBI 6.2
HDFC LIC 4.1
BIRLA SUN LIC 3.4
MAX NEW YORK LIC 2.4
KOTAK LIC 1.9
RELIANCE LIC 3.4
AVIVA LIC 1.8
Major Players Of LI And their
Market Share
 Major Players Of GIC And their
Market Share
COMPANIES MARKET SHARE (%) 2010
BAJAJ ALLIANZ 7.2
ICICI LOMBARD 9.5
TATA AIG 6.5
NATIONAL INSURANCE 5.7
NEW INDIA ASSURANCE 6.3
ORIENTAL INSURANCE 6.7
Others 58.1
Major Players Of GIC And their
Market Share
 Products Provide by LIC’s
• Health Care Insurance
• Retirement and Pension Plan
• Asset Plan
• Life time Gold Investment
• Mutual Fund
• Children Plan
• Group Insurance Plan
 Products Provide by GIC’s
• Motor Insurance
• Home Insurance
• Accident and Health Insurance
• Travel Insuarnce
• Small Business Insurance Plan
• Corporate
– Liability
– Energy
– Health
 Advertisement
• These Insurance companies mainly do advertisement
through television media.
• But mainly top insurance companies frequency of
advertisement is quick.
• Other sources of media used by insurance companies
are magazine, Radio, Newspaper, Hoardings, etc…
• Their most of the advertisements are emotional
promotion.
 Trends of promotion
• PAST
– In past they did promotion through bank
promotion
– They did promotion through flyers
– Did individual promotion
– And maximum promotion had been done by
direct contact with public.
• Present
– Use of upgraded hoardings
– Internet
– Television
– Magazines
– Sponsorships
– Events
– Radio
– Weekly letters
• How much do they spent on advertisement?
– Life Insurance Corporation kind of companies
spending on advertisement is high.
– Top insurance companies do more then 20%
expense on advertisement from their profit.
– They do advertisement through some events,
brand promotion, etc…
These are the logos and advertisement
Picture They Do
 Recall Exercise on LIC
• Founded in 1956
• Largest insurance company in India
• Owned by Government
• More then 8 zonal Offices
• 100 divisional offices
• 2049 Branches
• More then 100,21,500 agents
 Recall exercise On LIC
• Life Insurance in its existing form came to
India from the United Kingdom with the
establishment of a British firm Oriental Life
Insurance Company in Calcutta in 1818
followed by Bombay Life Assurance Company
in 1823.
Products
 Insurance Plans
• Bima account plans
• Endowment plus
• Children plan
• Plans for handicapped dependent
• Endowment assurance plans
• Money back plans
 Life Insurance Corporation Of India Use
Media Sources
TV Commenrcial
• Health Protection
• Na Chinta Na fikar
• Jeevan Anand
• New Bima Gold
• Jeevan Saral
• Children’s Plan
• Market Plus
 Promotion
• The company is pursing aggressive marketing
strategy advertising in TV, magazines,
newspaper, hoardings and other media.
• The TV advertising is taken care of by
corporate office while the strategies for
newspaper and hoardings advertising is
prepared by the zonal office.
• Up till now the advertising budget of LIC was
1% of the total business, but now to create
awareness the company is spending more.
• 55% of LIC’s business is from rural area and
45% is from urban.
• As we know insurance companies now-a-days
try to reach customer’s heart, want to affect
their emotions, etc…
 Analysis
• From the 100 samples
– 40% of the respondents are in the age group of 15
to 30. People say that, Life Insurance Corporation
is the company that first comes in their mind.
– 48% of respondents in the age group of15 to 30
knows the symbol of Life Insurance Corporation.
– 60% of the respondents said their awareness of
insurance company is from TV commercial