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Comparison Of L.I.C. With Its Competitors

By-Sheetesh RajpootRoll No. 0102927015

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Content

• INDUSTRY OVERVIEW• COMPANY PROFILE• INSURANCE SCHEMES OF LIC• COMPETETORS• SWOT ANALYSIS• RECOMMENDATIONS & ANALYSIS

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Insurance Industry

• In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.

• 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.

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Why do we need insurance?

What Is Life InsuranceLife insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. The contract is valid for payment of the insured amount during: -The date of maturity, or -Specified dates at periodic intervals, or -Unfortunate death, if it occurs earlier.

Overview of L.I.C In India

Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil.The main head quarter of LIC is in Mumbai.Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices,

Continue..7 zonal offices and the corporate officeLIC has launched its SATELLITE SAMPARK offices.The satellite offices are smaller, leaner and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future.

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Objectives of LIC• Spread Life Insurance widely and in particular to the rural areas

and to the socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost.

• Maximize mobilization of people's savings by making insurance-linked savings adequately attractive.

• Meet the various life insurance needs of the community that would arise in the changing social and economic environment.

• Promote amongst all agents and employees of the Corporation a sense of participation, pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective.

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SWOT Analysis

WEAKNESS OPPORTUNUTY

STRENGTHS THREATS

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SWOT Analysis

STRTENGTHSo BRAND NAMEo CUSTOMER REACHo DISTRIBUTION NETWORKo PROMOTION

WEAKNESSo OPERATION SERVICESo OLD WAY OF PROMOTIONo DELAY IN SERVICES

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SWOT Analysis

OPPRTUNITYo INCREASE IN THE RISK PROFILE OF INVESTORSo TARGET RURAL AREAS

THREATSo COMPETITORSo WEATHER CYCLESo NEW SUBSTITUDE PRODUCT EMERGING.o SECURITY FACTOR

Mission & Vision

Mission "Explore and enhance the quality of life of people

through financial security by providing products and services of aspired attributes with competitive

returns, and by rendering resources for economic development."

Vision"A trans-nationally competitive financial

conglomerate of significance to societies and Pride of India."

Members On The Board Of The Corporation

ShriD.K. Mehrotra, (Current-in-Charge & CHAIRMAN, LIC )

Shri T. S. Vijayan, (Managing Director, LIC )

Shri Thomas Mathew T. (Managing Director, LIC )

Shri A.K. Dasgupta, (Managing Director, LIC )

Shri R. Gopalan, (Secretary, Department of Economic Affairs, Ministry of Finance, Govt. of India.)

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LIC operates all over India.

Organisation structure of LIC Chairman

Managing Director

Executives Directors

Chiefs

Zonal Managers

Regional Managers Divisional Managers

100 Seniors Divisional Managers

Marketing Managers

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Organisation structure of LIC

Sales Managers Senior Branch Managers (Head of the Branch) Assistant Branch Managers Sells

Development Officers

Different Agent

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Insurance Plan’s of LIC

• ENDOWMENT PLAN• MONEY BACK PLAN• SPECIAL PLANS• FOR CHILDRENS PLANS• PENSION PLUS

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Competitors

• SBI LIFE• HDFC LIFE• ICICI PRU LIFE• BAJAJ ALLIANZ• TATA AIG• Birla sun life.• ING Vysya.• Aviva.• Kotak Mahindra old mutual.• Max new York.• Met life.

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Awards Received in 2010-11

CNBC Awaz Consumer Award

Readers Digest Trusted Brand Power Brand Award

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MARKET SHARE

Growth Profile

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(Q) WHICH INSURNACE COMPANY PREFERRED BY THE INSURER?

a-LIC .b-SBI.c-ICICI.d-BAJAJ ALLIANZ.e-other’s

68%

6%

6%

3%

18%

Chart TitleLIC SBI ICICI BAJAJ ALLIANZ OTHER's

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RECOMMENDATION & CONCLUSION

• LIC can capture market share through better pricing and client segmentation.

• It needs to apply different set of rules and treatment strategies to different customer segments. However, to personalize interactions, insurers are required to capture customer information in an integrated system.

• The Group Insurance scheme is required to be promoted.

• Premium should be less.

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Thank U…….!