Indian Life Insurance Industry

An analysis

By:-
Nitam B. – 18021141075
Sarbartha R. – 18021141099
Sudharshan V.R. – 18021141112
Abhilash – 18021141065
Rajesh - 18021141088
 Industry Analysis
Introduction
• Total 24 life Insurance Company
• LIC is the only public sector company
Market Size
• Gross premium written in India reached Rs. 4.58 trillion for FY 18
• In FY 19, premium from new life insurance business increased 3.91 percent
Government Initiatives
• In September 2018, National Health Protection scheme was launched
• The Insurance Regulatory and Development Authority of India (IRDAI) plans to issue
redesigned initial public offering (IPO) guidelines for insurance companies in India
• IRDAI has allowed insurers to invest upto 10 percent in additional tier 1 bonds
Road Ahead
• Life insurance industry is expected to grow at a 12-15 percent annually for the next
three years
• Increasing income of middle class and growing awareness
Growth
Porter’s Five Forces Model of Life Insurance in India

Threat of new
Entrants
(Moderate)

Rivalry
Bargaining Bargaining
among
power of power of
existing
suppliers customers
competitor
(moderate) (High)
s(High)

Threat of
substitutes
(Moderate)
 Bargaining power of suppliers
Threat level - Moderate
• Banks

• Claims verifiers

• Agents / Platforms

• Consumers !
 Bargaining power of customers
Threat level - High
• Switching costs and portability

• Being nullified by lock-in periods

• Customers are price-sensitive due to lack of

clear differentiation

• Customers are also a supplier

 Industry rivalry
Threat level - High
• Major private players
– SBI Life, HDFC Life

• Standardization (in product not service) to an

extent leads to retaliatory price-cutting

• Significant government presence

– PMJJBY, PMSBY, PMJDY
 Threat Of New Entrants
(Moderate)
• Government schemes are helping new companies to
provide insurances
• The threat level is moderate subject to license and
policies.
• LIC, market share-70.31
HDFC-5.65%
ICICI Prudential-4.90%
SBI-13.55%
Others-13.55%
Therefore, this companies are still dominating in respect
to new entrants.
 Threat of Substitute
Threat level - Moderate

• Investing & Savings

• Mortgage Insurance

• AD&D Insurance
 References
• https://www.ibef.org/industry/insurance-
sector-india.aspx