2. INTRODUCTION TO LIC
Formed in September 1956 by an Act of Parliament, LIC Act 1956
Network of seven zones - 100 divisions and 2,048 branches-personnel exceed seven lakhs
employees and over six lakhs agents
Has crossed many milestones and has set unprecedented performance records
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3. INTRODUCTION TO LIC
Vision: A trans-nationally competitive financial conglomerate of significance to
societies and Pride of India.
Mission: To explore and enhance the quality of the life of people through financial
security by providing products and services of aspired attributes with competitive
returns and by rendering resources for economic development.
Objective : Maximise mobilization of people’s savings by making insurance-linked
savings adequately attractive.
4. INTRODUCTION TO ICICI
Joint venture b/w ICICI bank & prudential life insurance company. ICICI bank has 76% of
stake & rest is of prudential.
Prudential is international financial service group having headquarter in U.K.
It started its operations in December 2000, after getting approval by IRDA & today this is
the no. 1 co. in private sector in India.
Maintained its focus on offering a wide range of flexible products that meet the needs of the
Indian customer at every step in life.
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5. INTRODUCTION TO ICICI
• ICICI Prudential Life is all about……
Hea Total alth
lt h We
Protection
Life
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6. PEST ANALYSIS OF LIC
POLITICAL FACTORS:
INCREASED SERVICE TAX ON PREMIUM
ENDING OF GOVERNMENT MONOPOLY
INCREASE IN FDI LIMIT
FAVOURABLE REGULATIONS FOR RURAL INSURANCE
ECONOMICAL FACTORS:
INCREASE IN GROSS DOMESTIC SAVINGS
CONTRIBUTION TO COUNTRY’S
ROLE IN GOVT. SECURITIES MARKET
BIGGEST DOMESTIC PLAYER IN EQUITY MARKETS
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7. PEST ANALYSIS OF LIC
SOCIAL FACTORS:
LOW INSURANCE COVERAGE
INCREASE IN LIFE SPAN AND RISE IN ELDERLY POPULATION
UNCERTAINITY ABOUT LIFE
CHANGING INDIAN PERCEPTION
TECHNOLOGICAL FACTORS
AUTOMATION OF PROCESSES
INTERNET DRIVEN INFORMATION ERA
BUSINESS PROCESS MONITORING
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8. PEST ANALYSIS OF LIC
LEGAL FACTORS:
REGULATORY BODIES
RENEWAL OF REGISTRATION
REQUIREMENTS AS TO CAPITAL
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9. PEST ANALYSIS OF ICICI
POLITICAL FACTORS:
• FDI
• CLOSE SUPERVISION AND CONTROL OF IRDA
ECONOMICAL FACTORS
RISE IN GROSS DOMESTIC SAVING
HIGH SALARIED JOBS
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10. PEST ANALYSIS OF ICICI
SOCIAL FACTORS:
PERCEPTION IN THE MIND OF PUBLIC
SHORTAGE OF EARNING HANDS
TECHNOLOGICAL FACTORS
ONLINE INSURANCE PREMIUM PAYMENT
BUSINESS TIE-UPS THROUGH E-BANKING
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13. CHILDREN PLANS
Jeevan Anurag Komal Jeevan
CDA Endowment Vesting at Marriage Endowment Or
21 Educational Annuity Plan
CDA Endowment Vesting 18
Jeevan Kishore Jeevan Chhaya
Child Career Plan Child Future Plan
Child Fortune Plus
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14. PLANS FOR HANDICAPPED DEPENDANTS
Jeevan Aadhar
Jeevan Vishwas
ENDOWMENT ASSURANCE PLANS
The Endowment Assurance Policy
The Endowment Assurance Policy-Limited Payment
Jeevan Mitra(Double Cover Endowment Plan)
Jeevan Mitra(Triple Cover Endowment Plan)
Jeevan Anand
New Janaraksha Plan
Jeevan Amrit
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15. PLANS FOR HIGH WORTH INDIVIDUALS
Jeevan Shree-I
Jeevan Pramukh
MONEY BACK PLANS
The Money Back Policy-20 Years
The Money Back Policy-25 Years
Jeevan Surabhi-15 Years
Jeevan Surabhi-20 Years
Jeevan Surabhi-25 Years
Bima Bachat
SPECIAL MONEY BACK PLAN FOR WOMEN
Jeevan Bharati-1
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22. FINANCIAL ANALYSIS OF LIC &ICICI
Year Premium of Life Insurers for the Period ended
(`crore)
mber, 2012
No. of lives covered under Group
Premium No. of Policies / Schemes
Schemes
Insurer Upto Upto Upto
September, Upto September, Upto September, Upto
September, September, September,
2012 September,2011 2012 September,2011 2012 September,2011
12 12 12
ICICI
Prudential
Individual
Single 7.82 51.90 148.53 372 2782 9649
Premium
Individual
Non-
234.45 1218.74 1014.15 54537 421332 565554
Single
Premium
Group
Single 40.17 257.56 279.50 11 94 89 70525 740518 824137
Premium
Group
Non-
20.00 501.62 473.41 4 11 17 5350 85490 431011
Single
Premium
LIC
Individual
Single 1554.90 5993.77 5594.18 163212 798448 908382
Premium
Individual
Non-
1873.95 13331.76 9823.81 2424849 12358999 12270977
Single
Premium
Group
Single 1897.33 15250.91 14980.80 17 60 9013 110793 431247 9398286
Premium
Group
122.15 765.09 6322.60 2286 10620 2653 4690197 17012717 2993181
Non-
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23. MARKETING ANALYSIS OF LIC & ICICI
THE TARGET AUDIENCE
CREATIVE STRATEGY
THE CREATIVE EXECUTION – through tv channels and press
OTHER COMMUNICATIONS
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24. STRATEGIES ADOPTED BY LIC
• LIC started intense, systematic and well focused on public relation and publicity
activity both at corporate and operational level
• LIC upped its ad to spend to tackle competition
• LIC has lauched its SATELLITE SAMPARK office
• LIC has established state of art machinery
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25. STRATEGIES ADOPTED BY ICICI
• ICICI Prudential launched the “TruLife Club” for its high-value policy holders as a
part of its marketing strategy
• Pragati Ki Anokhi Paathsaala or PKAP
PKAP aims to bring out inherent creative skills amongst children
• ICICI Prudential Life has also partner with e-governance Kiosks in Andhra
Pradesh- aponline.com and Rajasthan- emitra.com, to enable consumers renew their
policies in their kiosks
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28. FUTURE PROSPECTS OF ICICI
• Understanding the needs of customers and offering them superior
products and service
• Developing and implementing superior risk management and
investment
• strategies to offer sustainable and stable returns to policy holders
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Notes de l'éditeur
Life Insurance Corporation of India (LIC) was formed in September 1956 by an Act of Parliament, LIC Act 1956 with a contribution of Rs. 50 million. Presently the LIC has a network of seven zones….. From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business
ICICI bank is India’s 2 nd largest bank. ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse, and Prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI Prudential Life's capital stands at Rs. 4,793 crores (as of June 30, 2012) with ICICI Bank and Prudential plc holding 74% and 26% stake respectively ICICI Prudential Life Insurance has maintained its focus on offering a wide range of flexible products that meet the needs of the Indian customer at every step in life.
1. The imposition of service taxon the services provided by the insurers has been increased significantlyover past few years by the government. 2. A great revolution in theinsurance sector came in the year 1999 when IRDA passed the bill, liftingall entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. 3. The hike in the insurance foreign direct investment (FDI) limit to 49 per cent from 26 per cent has proved to be very beneficial for the insurance industry in India. It has encouraged foreigninvestors to invest in Indian insurance industry. 4. To encourage insurance sector to increase its spread in rural India, government has made regulations more favourable for rural people by decreasing the amount of premiums, introducing new group insurance plans and various other special plans for farmers. ECONNOMIC 1. INCREASE IN GROSS DOMESTIC SAVINGS : The gross domestic savings of people in India have increased significantly, due to which they are moving towards new ways of investing money for the future benefits including various insurance plans. As compared to previous year i.e.2007, the insurance industry thus expected to grow by about 40% during this fiscal year, i.e.2008. 2.CONTRIBUTION TO COUNTRY’S G.D.P : According to governmentsources, the insurance and banking services’ contribution to the country’sgross domestic product is 7% out of which the gross premium collection by various insurance companies forms a significant part. 3.ROLE IN GOVT. SECURITIES MARKET : Insurance companies are fest emerging as one of the most prominent players in the govt. securities market. The share of insurance companies in overall investment in the G-sec market has more than doubled to 23% during 2007-08 from 9%during the previous fiscal year. 4. BIGGEST DOMESTIC PLAYER IN EQUITY MARKETS : Accordingto RBI’s annual report for 2007-08, the insurance companies invested Rs.35880 crore in the G-sec market, which is over 173.06% higher than theRs.13880 crore they invested in 2006-07. Thus insurers have emerged as the biggest domestic institutional players in the equity markets.
SOCIAL FACTORS: 1.LOW INSURANCE COVERAGE : In India insurance is considered as which is pushed upon the customers to buy. People are unwilling to buy insurance due to lack of awareness. 2.INCREASE IN LIFE SPAN AND RISE IN ELDERLY POPULATION : In India lifespan has increased over past few years due to which the elderly population in India isrising day by day. To live a happy and independent life, more no. of educated peoples is moving towards investing in insurance to ensure a respectful andindependent life even in old age. 3.UNCERTAINITY ABOUT LIFE : Due to increasing no. of events of terrorist attacksin various parts of the country, people have started viewing life as more uncertain. Ithas developed a kind of fear factor in the minds of people leaving them more worriedabout their family and kids. Due to this reason they are moving more and moretowards buying insurance policies in order to secure their family’s future. 4.CHANGING INDIAN PERCEPTION : In India earlier people used to viewinsurance as a tax saving device or as a method of investment. But, nowadays a greatchange in the perception has come. People have started realizing the importance of getting insured. Now more no. of people is viewing it as a transfer of risk for a goodfuture. 5.CHANGE IN FAMILY SYSTEM
SOCIAL FACTORS: 1.LOW INSURANCE COVERAGE : In India insurance is considered as which is pushed upon the customers to buy. People are unwilling to buy insurance due to lack of awareness. 2.INCREASE IN LIFE SPAN AND RISE IN ELDERLY POPULATION : In India lifespan has increased over past few years due to which the elderly population in India isrising day by day. To live a happy and independent life, more no. of educated peoples is moving towards investing in insurance to ensure a respectful andindependent life even in old age. 3.UNCERTAINITY ABOUT LIFE : Due to increasing no. of events of terrorist attacksin various parts of the country, people have started viewing life as more uncertain. Ithas developed a kind of fear factor in the minds of people leaving them more worriedabout their family and kids. Due to this reason they are moving more and moretowards buying insurance policies in order to secure their family’s future. 4.CHANGING INDIAN PERCEPTION : In India earlier people used to viewinsurance as a tax saving device or as a method of investment. But, nowadays a greatchange in the perception has come. People have started realizing the importance of getting insured. Now more no. of people is viewing it as a transfer of risk for a goodfuture. 5.CHANGE IN FAMILY SYSTEM
SOCIAL FACTORS: 1.LOW INSURANCE COVERAGE : In India insurance is considered as which is pushed upon the customers to buy. People are unwilling to buy insurance due to lack of awareness. 2.INCREASE IN LIFE SPAN AND RISE IN ELDERLY POPULATION : In India lifespan has increased over past few years due to which the elderly population in India isrising day by day. To live a happy and independent life, more no. of educated peoples is moving towards investing in insurance to ensure a respectful andindependent life even in old age. 3.UNCERTAINITY ABOUT LIFE : Due to increasing no. of events of terrorist attacksin various parts of the country, people have started viewing life as more uncertain. Ithas developed a kind of fear factor in the minds of people leaving them more worriedabout their family and kids. Due to this reason they are moving more and moretowards buying insurance policies in order to secure their family’s future. 4.CHANGING INDIAN PERCEPTION : In India earlier people used to viewinsurance as a tax saving device or as a method of investment. But, nowadays a greatchange in the perception has come. People have started realizing the importance of getting insured. Now more no. of people is viewing it as a transfer of risk for a goodfuture. 5.CHANGE IN FAMILY SYSTEM