AGENDA

ABOUT INSURANCE INDUSTRY

SWOT ANALYSIS

EFE MATRIX

BCG MATRIX

PEST-LE-DLCSCC

MCKINSEY DPM
 LIFE INSURANCE INDUSTRY
Industry Profile
INDIAN
INSURANCE INDUSTRY

LIFE NON LIFE Source IRDA Report

INSURANCE INSURANCE April 2006
According to July Report
LIC-78.53%, others-
21.47%.

Public Private Public Private

Sector (1) Sector (14) Sector (4) Sector (9)
SWOT
Strength:

 THE REACH

 TRUST

 AWARENESS AMONG THE PEOPLE

Weakness:
 SLOW TO REACT TO CHANGING NEEDS

 ALL PLANS DO’NT HAVE GOOD RETURN OPTION

 ATTRITION RATE IS HIGH

 MARGINAL PROFIT IS LOW

Opportunities :

 UNTAPPED MARKET

 FDI

 NEW FACILITIES

 CONSIDERED AS A GOOD INVESTMENT OPTION

Threats :

 NATURAL CALAMITIES

 INSURANCE FRAUDS
EXTERNAL FACTOR EVALUATION (EFE)
MATRIX
KEY EXTERNAL FACTORSWEIGHT RATING WEIGHTED SCORE

OPPORTUNITIES:

Untapped market 0.25 2 0.50

FDI 0.15 3 0.45
New facilities 0.15 2 0.30
Considered as a good 0.20 3 0.60
investment option

THREATS:

Natural calamities 0.10 2 0.20

Insurance Frauds 0.15 3 0.45

TOTAL 1.00 2.50

 BCG MATRIX
Company Market share Relative market Relative company
(%) share sales growth rate
(%)

Bajaj Allianz 26.49 1 215.17

ICICI Prudential 25.72 .97 156

Reliance 1.89 .07 105

SBI 8.08 .30 91

HDFC 10.04 .38 120

Shriram .10 .003 18

Sahara .21 .007 23

 BCG MATRIX (Only Private players)
RELATIVE MARKET SHARE

High 1.00 Medium 0.5 Low 0.00

INDUSTRY SALES GROWTH RATE

( Bajaj Allianz)- 1.00 (Reliance)- 0.07

(Icici Pru) – 0.97 (HDFC)- 0.38 HIGH
+437.5%
(SBI) -0.30
STAR QUESTION MARK

MEDIUM
(Sahara)0.007 0
(40.61%)
(Shriram)0.003

CASH COW
DOG

LOW
-437.5%

SOURCE:IRDA March 2006

PEST-LE-DLCSCC
ANALYSIS
POLITICAL AND LEGAL ENVIRONMENT
 Legislation

 Enforcement
 Foreign Direct Investment

ECONOMIC ENVIRONMENT

 Changes in Income

 Changes in consumers spending pattern

 Economic growth and development
SOCIAL ENVIRONMENT
 Greater concern for ethics

 Healthier life style

TECHNOLOGICAL ENVIRONMENT

 Increased cost reduction

 Fast pace of change
DEMOGRAPHIC ENVIRONMENT:
 Changing family structure

 Education Level
 Geographic Shifts

LABOUR MARKET

 Willingness to perform social duty

 High attrition Rate

Suppliers

Customers

competition
MCKINSEY DPM
PARAMETERS HIGH MEDIUM LOW

1. INDUSTRY ATTRACTIVENESS √

2.AMOUNT OF COMP. √

3.MARKET CONCENTRATION √

4.SEASONALITY √

5.CYCLES OF DEMAND √

6.BUSINESS COMPETITIVE POSITION √

CONTD……
7.PRICE COMPETITIVENESS √

8.REPUTATION √

9.MARKET SIZE √

10.INDUSTRY PROFITABILITY √

11.QUALITY √

12.GEOGRAPHY √

13.CUSTOMER AND MARKET √

KNOWLEDGE