INSURANCE SECTOR (LIFE)

Comparative study of LIC and ICICI Prudential

SYNOPSIS

Introduction to insurance Introduction to LIC Introduction to ICICI Prudential

Marketing mix
Service marketing triangle Market share SWOT analysis Conclusion

WHAT IS INSURANCE?

Insurance, in law and economics, is a form of risk management primarily used to hedge

against the risk of a contingent loss.

Insurance rate is a factor used to determine the amount, called the premium, to be charged for a certain amount of insurance coverage.

Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment.

An insurer is a company selling the insurance; an insured, or policyholder, is the person

or entity buying the insurance policy.

The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium

INTRODUCTION TO INSURANCE SECTOR

Life insurance in its modern form came to India from England in the year 1818.

Bombay mutual life assurance society heralded the birth of first Indian life
insurance company in the year 1870, and covered Indian lives at normal rates.

The first two decades of the twentieth century saw lot of growth in insurance business.

From 44 companies with total business-in-force as rs.22.44 Crore, it rose to 176 companies with total business-in-force as rs.298 Crore in 1938.

Previously people felt that insurance is only for classes not for masses but now the picture is vice-versa.

In 1997 IRDA was set up .

Life insurance in India made its debut well over 100 years ago

The Life Insurance of India Act was passed in the year 1956.
Largest institutional investors in India. It is fully owned by the Government of India.

It also funds close to 24.6% of the Indian Government's expenses.

Largest life insurance company in India. LIC is one of the largest employers in India

The current Chairman is Mr. T.S. Vijayan.

Claim ratio is 96.4% & claim repudiation ratio is 1.43%.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank & Prudential PLC. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000. The company has a network of about 56,000 advisors; as well as 7 banc assurance and 150 corporate agent tie-ups. For the past four years, ICICI Prudential has retained its position as the No. 1 private life insurer in the country.

MARKETING MIX

Product Mix
LIC

ICICI PRUDENTIAL

Children plan Money back plan Plans for handicapped dependents Endowment assurance plans

Protection Plans Premium Guarantee Plans

Education Insurance Plans

Wealth Creation Plans Group Plans Health insurance plans

Whole life plans

Term assurance plans Joint life plan Pension plans ULIPS

Retirement Plans
Rural Plans

Plans for high worth individuals

PRICE MIX
LIC Managements Expenses Insurable Interest Mortality Rating

Place Mix
LIC
Yogekshma 7 Zonal Offices 18 such divisions

ICICI PRUDENTIAL BANCASSURANCE Largest distribution networks amongst private life insurers in India. Around 1,400 branches

18 Main Branches

Promotion Mix
LIC

ICICI PRUDENTIAL

Posters and Hoardings:

Booklets, Brochures and Pamphlets Journals and Publications: Trans-slides: Radio advertising Television advertising Press Conferences: Information Kiosks: Customer Contact Programme

Radio advertising Television advertising Press Conferences: Booklets, Brochures and Pamphlets Journals and Publications: tie-up with the Dabbawalla Organisation in Mumbai

The Process Mix (general process)

The People Mix

LIC of India

ICICI PRUDENTIAL

The Agent is a pioneer field force, in procurement of the LICs business. In the year 2009-10 total number of agents was 13,44,856. The corporation 17,684 urban career agents 22,324 rural career agents

People are the main assets of in any organization Thy are precious in the service sector People strategy of icici prudential is to build a committed team with a culture of innovation, learning & growth

Physical evidence
LIC

ICICI PRUDENTIAL

Appearance and dressing of the agents and the frontline staff, The office dcor, The office building on the whole, The quality of paper used in the forms, etc. Calendars, bags, diaries, etc. Are also given to the policyholders as a token of gifts.

Facility design, Employee dress, Signage, Tangibles, Reports and statements. We cover you at every step of life Jeete raho

SERVICE MARKETING TRIANGLE:-

COMPANY

Internal Marketing

External Marketing

PROVIDERAGENTS Interactive Marketing

CONSUMERSPOLICY HOLDERS

MARKET SHARE

Market Segmentation
1.

2.
3. 4. 5.

Business class Service (earning) class Agricultural laborers Farmers High net worth individuals

ICICI
STRENGTHS 1. 2nd largest in insurance sector 1. Slow WEAKNESS

2. Strong & well developed distribution network 3. advantage of government guarantee is accompanied with it.

decision making process 2. Not reachable to village area 3. Try to attract middle-lower level people also

SWOT
OPPORTUNITIES 1. THREATS

Huge market is literally untapped 2. insurance coverage both to the parent and child

1. Competition is more 2. People are taking more time for decision

LIC
Strengths
1.Oldest and most well experienced player having a Pan India presence. 2. LIC has a strong and very well developed distribution network.

Weakness
1.Employees and other staff are lethargic and least motivated to render prompt and sincere customer service. 2. After sales customer grievance redressal mechanism is inefficient.

SWOT
Opportunity :
1. Emergence of a huge middle income consumer market in the country 2. People becoming more aware and demanding so there is scope for a whole lot of innovative products. 3. Pension markets, health insurance and large real estate portfolio.

Threats : 1. There is too much internal discord. 2. Entry of new private players in industry.

CONCLUSION