LIC Competitors:

Market Share:
• LIC of India is still the market
leader

• Private players allowed in the

market in 2000

• Currently, close to 30 public

and private firms in India
dealing in life insurance

ICICI Prudential
HDFC Standard Life
SBI
Reliance
Bajaj
Birla Sun Life
Max New York etc.
Source: Free press India(Oct 4, 2010)
Performance of LIC:
Paid up capital:
Insurer March 31,2008 Additions March 31,2009
LIC 5.00 0 5.00
Private Sector 12291.42 5956.62 18248.04

New Policies Issued:

Insurer 2007-08 2008-09
LIC 37612599 35912667
(-1.61) (-4.52)
Private Sector 13261558 15010710
(67.40) (13.19)

Number of Offices: Operating Expenses Ratio:

Insurer 2009 2008 Insurer 2007-08 2008-09

Private 8785 6391 LIC 5.55 5.76
LIC 3030 2522 Private Sector 23.25 25.83
Porter’s Five force Model:

POTENTIAL
SUBSTITUTES
ENTRANTS UNIT PLUS (SBI
DLF PRAMERICA LIFE, LIFE),
STAR UNION DAI-CHI NEW CAPITAL GAIN
LIFE, FUTURE (BAJAJ ALLIANZ)
GENERALI LIFE, etc.
SRIRAM SUNLAM LIFE
INDUSTRY
COMPETITORS
LIC, BAJAJ ALLIANZ,
SBI LIFE, RELIANCE
LIFE, HDFC STANDARD
LIFE, BIRLA SUN LIFE,
MAX NEW YORK LIFE,
KOTAK MAHINDRA
BUYERS SUPPLIERS GROWING
SWITCHING TO POWERS
DIFFERENT BANKS, CA ARE
INVESTMENT SECTORS IMPORTANT
FOR BETTER RETURNS, CHANNELS TO REACH
UNDIFFERENTIATED THE CLIENT. HIGH
PRODUCT BARGAINING POWER
Strategy adopted by LIC for Competitors:

 Launched many new products

 Improved their services
 Increased expenditure on advertising
 Employs local people as sales intermediaries
 Direct channel (online service aimed at tech- savvy people)
 Lead generation (virtual office)
Brand Image of LIC compared to competitors:

 Old and Trusted brand

 Better Customer Loyalty and Service
 Strong Customer Database
 Huge Investment capital
 Distinct and Diversified Insurance products
 Frontline Sales personnel
Long Term Objectives:

 Spread life insurance to the rural areas and socio-economically

backward classes

 Maximize mobilization of people’s savings by making

insurance-linked savings more attractive

 Involve all people working the Corporation to the best of their

capability in furthering the interests of the insured public