GB1218 Recent Trend in Marketing Strategies and performance evaluation of Life Insurance Corporation of India
Abstract Life Insurance Corporation of India (LIC) is a monolithic company from last few decades. After the successful implementation of economic reforms in life insurance sector in India, LIC of India has made several positive efforts to triumph the hearts of the people. To achieve that LIC of India have adopted a number of new trends in marketing strategies for introducing innovative technologies. This study is an attempt to know about the recent trends followed by LIC of India in order to make their products available to each and every forthcoming customer in the life insurance market. The present research paper is a comprehensive study to know whether the implemented strategies have truly helped LIC of India in the changing trends of the society and will also suggest how these recent trends have helped LIC of India as a whole to manage the existing leading position in the life insurance market.
The setting up of the Insurance Regulatory and Development Authority (IRDA) was a clear signal of the end of the monopoly in the insurance sector. It has become imperative for LIC to face the competition posed by the entry of new private players. If under this pressure, Life Insurance Corporation of India improves its performance, the whole economy will be benefited. The insurance industry has undergone a drastic change since liberalization, privatization and globalization of the Indian economy in general and the insurance sector in particular. For almost four decades LIC has been sole player with virtual monopoly in the life insurance sector. The entry of so many companies in this sector was likely to affect the performance of Life Insurance Corporation. Thus the LIC public sector giant, which never faced competition earlier, now has to compete with the private players who boast of the rich and long experience of their partners from the developed countries of the world Introduction The insurance sector in India has completed a full circle from an open competitive market to nationalization and then back to liberalized open market. The insurance sector in India has completed a full circle from an open competitive market to nationalization and then back to liberalized open market. LIC of India has been the bystander of the entire transformation from one phase to another. In 2000, when Insurance Regulatory and Development Authority (IRDA) was set up in India, 23 more private life insurance companies entered till date into the Indian market other than one already existing public life insurance operator LIC of India.
COMPANY PROFILE Name of the company: Life Insurance Corporation of India. Head Office:Yogakshema Jeevan Bima Marg, P.B.No. 19953. Mumbai - 400021 Organizational Structure till today: Central office - at Mumbai Zonal offices - 8 Divisional offices - 106 City Branches 790 Moffussill Branches 1258 Total Branches - 2048 Branches in Centers 1363 Emerging private players Years Public Private Total 2001 1 10 11 2003 1 12 13 2005 1 14 15 2007 1 17 18 2009 1 22 23 2011 1 23 24 2013 1 25 26 Purpose of the study LIC of India plays a vital role in the growth of life insurance sector and also to the economic development of the country. Since economic reforms the life insurance sector is changing rapidly due to the continuous change in the customer needs and preferences. These changes have helped in a great number to both the urban and rural consumers. Life Insurance Corporation of India has worked continuously hard to grow since 2000. In order to increase its business LIC of India has increased their life insurance offices. Objective of the Study To know about the recent trends in the marketing strategies adopted by LIC of India. To know whether the new adopted marketing strategies have helped LIC of India to increase their business volume. To understand the importance of Life Insurance in human life. To know the working of LIC (Life Insurance Corporation). To identify major attributes for the success of plans. To evaluate the operating efficiency of LIC of India. To measure the performance of LIC of India. Hypothesis of study IN ORDER TO ACHIEVE DEFINED PURPOSE OF THE STUDY FOLLOWING HYPOTHESIS HAVE BEEN CONSIDERED.
Is the recent trends in marketing strategy adopted by LIC are fulfilling the customer needs and preferences.
Is the recent trends in marketing strategy adopted by LIC are helpful in terms of increased volume.
Ho: There is no significant difference in expenses of sampled unit during the period of the study.
H1: There is significant difference in expenses of sampled unit during the period of the study Hypothesis of the study: Following is the hypothesis of the study. Research Methodology The research methodology adopted for this study is basically related to the evolutionary research method. The research study is based on the secondary sources for collecting data. The secondary data consisted of Annual reports of LIC and IRDA and also some other published journals and magazines of LIC like Yogeashema monthly journal. The present research study is mainly based on the Annual reports of I.R.D.A. and LIC of India for important data of respective years since 2000 till 2013. The research study has also collected some information from websites of LIC and IRDA. Research methodology Sampling: The Insurance industry now a day has so many Life Insurance institutions in India; I have selected LIC of India as a sample. Tools & Techniques of the Study: I have used the tools as per the need and type of the study. The information so collected has been classified, tabulated and analysed as per the objectives of the study. As per the nature of the data available the graphical presentation was also done. As per the objectives of the study F-test was applied. Significance of the study: Life insurance is a very significant factor in human life. The present study gives the perfect knowledge of life insurance and current situation of LIC plans. Life insurance being an important form of social security. In this present world human life become so risky.
Data collection and analysis The research has mainly focused its findings based on the Annual Reports of LIC and IRDA for respective years and also from Life Insurance Today. Besides, a few websites of LIC and IRDA have also been consulted to collect data related to the research study. The data used in the paper covers the period from 2000 to 2012. Based on the collected data analysis has been done with appropriate observation techniques.
Product development fundal Since after the setting up of IRDA it had became imperative for LIC of India to face the competition posed by the entry of new private players. Life Insurance Corporation of India not only managed to uphold the high pressure confidently but is also improving its performance day by day. According to the changing demand of the society LIC of India has changed a lot in the nature of products they offer to their customers. LIC of India today has many new innovative products spread over a large canvas. LICs products and services are scattered in various dimensions right from the basic Insurance plans to special plans for special people. All these varied products give a strong marketing orientation to LIC of India. The product line of LIC of India includes products like several Endowment plans, pension plans, unit link plans, money back plans, health insurance plans etc.
SCOPE OF THE STUDY The present study covers secondary data of LIC of India during the period of the study. Besides, commission expenses and operating expenses of LIC have also been included for the analysis of operating efficiency. LIMITATION OF THE STUDY This study is restricted or limited to Life Insurance Corporation (LIC) of India only. It should be noted that the suggestions and conclusion viewed here would be as per the data collected by the researcher. DATA ANALYSIS
Life Insurance Corporation (LIC) is doing business of Insurance in India since 1961. By providing insurance, as such it tries to secure the human life value and there by adds further security to the person having insurance policy. As mentioned earlier that as per the type and nature of the data available researcher has analyzed major five components of the expenses of the sampled unit. All Expenses are analyzed through statistical measures. This chapter goes further, and Descriptive Analysis has been being carried out. The following table shows the major five variables which are taken for the analysis. Findings it is clearly observed that there is an overall growth in NOP from 19673320 in 2000-01 to 35751238 in 2011-12 except a small number of down falls in a few years. the marketing strategies adopted by LIC of India is helpful in increasing their business volume but a lot have to be done in the areas of increasing number of lives which will certainly affect the overall performance of the corporation. Conclusion The present state of Life Insurance Sector in India is awe- inspiring as far as the awareness of customers is concerned. LIC of India has well managed to take the spirit of competition in a positive way which has helped the corporation to grow further with high strength of mind in contribution to the growth of the country. The present research study thus reveals those important areas where more contribution on the part of LIC of India is required. The one is to increase in the number of offices both in urban and rural areas which will help the corporation to increase their business and reach among the customers. LIC of India must increase their agents base to retain its dominating market share because agents are the backbone of the corporation. LIC of India should also open more Life- Plus offices and authorized collection centers to make its objectives achieved in true way to spread the life insurance business in every nook and corner of the country.