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AMIT KUMAR
COMPETETORS
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LIC
SAHARA LIFE INSURANCE
HDFC STANDARD LIFE
BIRLA SUN
TATA AIG
AVIVA
RELIANCE LIFE INSURANCE
MAX NEW YORK LIFE INSURANCE
KOTAK MAHINDRA
COMPETETORS
AVIVA LIFE INSURANCE:
Aviva Life Insurance Company India Pvt. Ltd. Is a joint venture
between Aviva of UK and Dabur, one of India's leading producers of
traditional healthcare products? Aviva holds a 26 per cent stake in the
joint venture and the Dabur group holds the balance 74 per cent share.
BAJAJ ALLIANZ
MARKET SHARE:
Weakness:
1. Is less aggressive in generating business compared to other
private life insurance players.
2. Over dependence on the banc-assurance channels.
Opportunities:
1. Growing population, strengthening incomes, purchasing power,
and transforming demographics provide growth opportunities.
2. Awareness of need to invest for a secured future for self and
family.
3. Increasing universe of potential insurance takers Individuals and
Companies across industries.
4. Mobile-based insurance model: There are over 865 million
mobile users in India as of December 2012 of which around
535million are urban users while 330 million are rural users.
Extending the business capabilities to mobile devices has
quickly become a fundamental requirement for companies.
Threats
1. Introduction of new players in the market with high level of
product differentiation threatening the existing market share
of the companies.
2. Increasing number of providers offering a comprehensive range
of products at competitive prices and higher level of customer
satisfaction.
3. Decrease in the savings of the people which will lea d to lesser
income to be invested in insurance plans.
There are not many substitutes which can provide the benefits of riskcoverage to the customers at the same cost.
Threat of substitute as an Investment and saving tool HIGH
There are multiple tools available in capital market that provides
similar returns for the risk involved.
Power of buyer HIGH
There are signs of fundamental changes in consumer behaviour, a
factor which will affect all insurers.
Due to a high level of competition in the life insurance sector, the
customers enjoy a moderate to high bargaining power. Firms compete
with each other on the basis of customer service, lower premiums,
higher coverage, tax benefits which result in an overall benefit to the
customer.
Market is highly segmented
Insurance industry very return oriented and switches easily
High switching cost creates buyers lock in and makes a buyers
bargaining power
Exercise bargaining leverage over premium
Threat of new entrants: LOW
Though there are high barriers to entry in the life insurance sector;
joint-venture and partnering models are changing the competitive
landscape across the world. Insurers are teaming up with large nontraditional players or companies from other industry sectors.
Information from data provider BvD suggests that both mature and
emerging markets find joint ventures attractive: 40 percent of almost
400 joint ventures in the insurance sector since 2000 were established
in the Far East and Central Asian region, with about 30 percent in
Western Europe.
Potential Indian would seek for a brand with high brand
visibility and thus they would attribute higher reliability to it.
The acceptability of new brand is also very low.
Economies of scale are difficult to find in the initial stage of
entry in to market.
Special permission is required from the government to enter
in the insurance sector.
PEST ANALYSIS
Economical
factors
Political
factors
PEST
Socio-cultural
factors
Technological
factors
Political
a. Insurance business rural sector
b. Capital requirement:
By training the excessive staff, the company could reduce
management expense which will lead to reduction in capital
requirement and also the resources will be used to the optimum.
c. Renewal of registration
d. Investment of funds outside India
e. Power to investigation
f. Tax policy and insurance sector
Economical
a. Adequacy of capital:
i. The company has a lot of capital since its the largest in India.
ii. The company has large balance sheet and funds.
b. Increased economic activity:
Due to increasing knowledge about insurance in India, there has been
an increase in economic activities for the company.
Also, the company has come up with various policy plans to cater to
all kinds of public.
Hence, a considerable increase has been noticed in their economic
activities.
c. Interest rates and Inflation rates.
d. Customer satisfaction:
As their tagline suggests: with us, you are sure; SBI life insurance
aims to satisfy the customer in the best possible ways by having
various policy plans and benefits. With customer satisfaction comes
customer loyalty and hence, sbi life insurance is fast growing.
e. Market Related factors
Socio-cultural factors
a. Population:
i. The company has huge presence in rural sectors and has products
catering to the rural population.
ii. The products offered are a bit differentiated on age and gender.
iii. The growing population of country has offered SBI Life Insurance
with young population which considers life insurance as an
investment.
b. Life style and Level of earning:
The policies are for all the income groups and hence it caters to all
kind of customers.
Technological
A. E-business:
Internet based life insurance helps SBI life insurance reduce cost and
time. At the same time, it can improve the quality of service. Also,
with e-business, it has been able to reach more customers.
B. maintaining the database:
With the efficient use of technology, SBI life insurance has a
systematically maintained database which makes it easier for the
company to target the customers as well get back to them later. With
the database they have, they know what new can be done to expand
their market.
CONCLUSION
To conclude we can say that there is a huge untapped market in India
which is going to benefit the sector in the upcoming years. The share
of private players is increasing. LIC is the biggest player but private
players with their strengths are increasing their market share. With
new FDI norms the sector and the players are surely to benefit.