AGENDAABOUT INSURANCE INDUSTRY

SWOT ANALYSIS

EFE MATRIX

BCG MATRIX

PEST-LE-DLCSCC

MCKINSEY DPM

INDIAN INSURANCE INDUSTRY

Private Sector (14)

Public Sector (1)

PublicSector (4)

Private Sector (9)

LIFE INSURANCE

NON LIFE INSURANCE

Industry Profile

Source IRDA Report April 2006

According to July Report

LIC-78.53%, others- 21.47%.

LIFE INSURANCE INDUSTRY

SWOTStrength:

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 investment option

0.20 3 0.60

THREATS:

Natural calamities 0.10 2 0.20

Insurance Frauds 0.15 3 0.45

TOTAL 1.00 2.50

Company Market share

(%)

Relative market share

Relative company 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

HIGH+437.5%

MEDIUM 0 (40.61%)

LOW-437.5%

BCG MATRIX (Only Private players) RELATIVE MARKET SHARE

(Bajaj Allianz)- 1.00 (Icici Pru) – 0.97 STAR

(Reliance)- 0.07(HDFC)- 0.38(SBI) -0.30 QUESTION MARK

CASH COW

(Sahara)0.007(Shriram)0.003 DOG

IND

US

TR

Y S

AL

ES

GR

OW

TH

RA

TE

High 1.00 Medium 0.5 Low 0.00

SOURCE:IRDA March 2006

PEST-LE-DLCSCC ANALYSISPOLITICAL 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 DPMPARAMETERS 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

√