Globalization and Marketing Strategy 2016

Globalization & Marketing Strategy.
R. Ravindra Kumar
Secretary (Audit)
LIC OF INDIA
AHMEDABAD

Life Insurance Premium Growth in
Industrialized Countries(%)
Country 2010 2011 2012
US -3.5 0.7 3.0
UK 1.1 0.6 -7.2
Australia -9.1 -5.0 6.1
Japan 5.7 2.4 4.4
Netherlands -16.4 -13.4 -2.0
Germany 23.9 -17.7 -2.2
Italy 13.9 -26.4 -7.3

2010 2011 2012
Emerging Asia -2.5 9.6 7.3
Middle East 11.2 9.8 17.7
Latin America 10.0 8.5 20.5
Central & Eastern Europe 4.8 6.1 -7.2
Life Insurance Premium Growth in
Emerging Markets(%)

Insurance Density(2012) in Select Countries
COUNTRY Ins Density(Rs)
Switzerland 214500
Australia 121000
Germany 104500
South Korea 77000
World 76000
UK 66000
Singapore 55000
Malaysia 20900
USA 13200
Brazil 13200
China 4400
India 3300
Sri Lanka 1100
Russia 550
Pakistan 440
Bangladesh 275

COUNTRY INSURANCE PENETRATION (%)
South Korea 12.0
UK 11.2
Switzerland 9.8
World 7.6
USA 7.0
Germany 5.8
Singapore 5.5
Australia 5.5
Malaysia 4.9
India 4.2
Brazil 3.1
China 2.7
Russia 2.1
Sri Lanka 1.4
Bangladesh 0.9
Pakistan 0.6

Life Insurance Density in India
Year Insurance Density(Rs)
2001 410
2002 527
2003 581
2004 707
2005 824
2006 1494
2007 1818
2008 1854
2009 2147
2010 2507
2011 2900
2012 3300

Life Insurance Penetration in India
Year Penetration (%)
2001 2.15
2002 2.59
2003 2.26
2004 2.53
2005 2.53
2006 4.10
2007 4.00
2008 4.00
2009 4.60
2010 4.40
2011 4.32
2012 4.21

In 2014, a number of factors will influence insurers’ strategies
in Asia-Pacific, including:
• Clarity on the best growth opportunities (including emerging
areas like health and pensions).
• Implications of a rapidly changing regulatory environment.
• The need to invest in technology to enable growth and
improve operations and risk management.
• The need to innovate new services for the mobile technology
revolution. (Social Media Marketing)

MARKET SHARE OF LIC(%)
2008-09 2009-10 2010-11 2011-12 2012-13 2015-16
57.95 61.31 63.16 65.84 67.24 56.26

Analysis of Individual Market Share
• In Individual Single Premium Segment Pvt. Players have
registered growth of 7.54 % whereas LIC has shown de-
growth of 4.93 %
• In Individual Non- Single Premium segment Pvt. Players have
registered growth of 13.66 % as against 3.40% by LIC
• In Individual policies LIC has registered growth of 1.88 % as
against 7.93 % by Pvt. Players.
• Ever Best Market Share in last 10 years
• • Single Premium: 89.59 % in 2008-09
• • Non- Single Premium: 63.08 % in 2011-12
• • Total Individual: 72.46 % in 2006-07

LIC’s Strengths…
• Brand Equity
• Wide reach
• Human Resources
• Wide Range of Products
• Hi-Tech Operations and Services
LIC has the
Full Guarantee* of the
Government of India

“ Life Insurance is the
language of love.
It is something we do
for someone else.”

CURRENT Industry scenario:-
• 1. 24 lakh Agents in 24 company
• 2. Branches 12000
• 3. Renewal growth 4% to 10%
• 4 only few company reported profit.

CHANGING ENVIRONMENT
• 1. Falling commission rates
• 2. Focus on professional Agents.
• 3. Customer interest uppermost.
• 4. Realignment of companies DOs and Agents
• 5. DTC code have negative impact.

FACT SPEAKS
• 1. ULIP share down by 37% to 18%
• 2. Only 5 companies offer ULIP.
• 3. Pension premium down by 30% to 5%
• 4. LIC'S 97.5% business comes from agency force while Pvt.
Players 47%. From agency.
• 5. Last year 11% lost their Agency. 5% in LIC & 6% in Pvt..

INDUSTRY IN TRANSITION PHASE
• 1 No new company; only Banks.
• 2. IPO of Pvt. Co. expected.
• 3. 1000 branches closed in last 2-yrs.
• 4. 1 out of 4 persons lost job in Pvt. Co.

COMPANIES CHANGING HAND
• 1. Reliance us in talks with Nippon life.
• 2. NYL sell to MNYL
• 3. Mukesh Ambani
• 4. B.S.L.I to 30% stake in Syndicate bank.
• 5. METLIFE to PNB
• 6. 70,000 bank branches was to sell insurance but NEW
GUIDELINE BY RBI FOR BANKERS

STRENGTH OF LIC
• 1. 56.26% market share in FPI
2. 77.84 % market share in N.O.P.
3. 97% claim settlement ratio.
4. Solid base of traditional products.
5. High level of service.
6. Insulated from market instability.
7. Committed sales force.
8. YOU

CHALLENGES BEFORE LIC
•
• 1. Lack of big ticket policies.
2. Weighted premium share 54%
3 No. Of policies vs. No. Of lives
4. Fresh premium.
5. May loose 18000 cr. Loans to State bodies.
6. Advantage in claim settlement
(claim=maturity+Death+S.B)
7. Expensive term plans.

ROLE OF DOs.
• 1. Biggest strength if LIC.
2. Can be biggest weakness also
3. Do u have 15-yrs experience?
(1-yrs experience repeated 15 times)
4. Most training on product and rules only.
5. Think like businessman(Show must go on in
spite of problems)
6. Other channel is part of life now.

• private
LIC mind set |
LIC trainer recruit |
WHAT TO EXPECT FROM AGENTS

What are we doing
• 1. Is your team size us increasing?
2. Is ur knowledge more than ur agents?
3. Is recognition is fascinating u?
4. Is ur ranking improving?
5. Are u high achiever in any count?
(Premium/S.A./lives/Policies)

HOW TO COMMAND a RESPECT
• 1. Ur knowledge.
2. Your coaching, ability to give solutions.
3. Your guidance for his growth.
4. Giving him comfort in office.
5. Open appreciation to achievers.
6. He is internal customer( for us Agent is our
customer)

BIG AGENT A PROBLEM
• 1.What have u given him beyond agency?
2. Are u growing as fast as he is growing?
3. Can u create more agents like him?
4. Is your job is saved by him?
5. He work through me and not under me
6. Would he choose u again?
7. Would he recommend agents to u for
agency?

CHANGING WITH TIME
• 1 Still selling video cassette?
2. Are u getting royalty if old book?
3. Does he have computer, email,
smartphone?
4. Does he use software for sales?
5. Do u arrange any training for them?

LET'S TAKE CARE
• 1. Give details of club membership/ MDRT
Status.
2. Tracking their income
3. What time does your day starts?
4. What is Your routine?
5. Are Your agents independent?
6. What is Your punctuality and originsing
ability?

ASK YOUR SELF
• 1. Why should a new, Aspirant Agent join
You?
2. Do you hold unit meeting every month?
3. What do you give them in unit meeting?
4. Do you go to joint call with each agents?
5. Do you stand at stall with your agents?
6. Do u ever make a group presentation?

IT IS TIME TO THINK
• 1. Ever held an experience sharing session?
2. Give them a call plan wise?
3. Can You make a normal Agents a big
Celebratee Agent
4. Do u visit You agent's house?
5. Ever invited Agent's families?

COMPULSION FOR AGENTS
• 1. To increase volume for same income
2. Big opportunities for big agents
3. Can you replace out going agents easily?
4. Can you only wait and watch.

DO HAS TIME LIMITATION
• 1. Handling 50 to 100 agents team.
2. 40000 policies to service
3. Underwriting and servicing in branch.
4. Looking for new recruits
5. Administration of own staff/office.
6. Can you give you agents something new
regularly?
7. Do blame other factors for decrease in you
business or take full responsibility to increase
in any scenario

• This report provides a comprehensive analysis of the personal accident and health
insurance segment in India:
- It provides historical values for the Indian personal accident and health insurance
segment for the reports 2009 - 2013 review period, and projected figures for the
2013 - 2018 forecast period.
- It offers a detailed analysis of the key sub-segments in the Indian personal
accident and health insurance segment, along with market forecasts until 2018.
- It covers an exhaustive list of parameters, including written premium, incurred
loss, loss ratio, commissions and expenses, combined ratio, frauds and crimes,
total assets, total investment income and retentions.
- It analyses the various distribution channels for personal accident and health
insurance products in India.
- Using Porters industry - standard "Five Forces" analysis, it details the competitive
landscape in India for the personal accident and health insurance segment.
- It provides a detailed analysis of the reinsurance segment in India and its growth
prospects.
- It profiles the top personal accident and health insurance companies in India and
outlines the key regulations affecting them.

32
R. Ravindra KumarR. Ravindra Kumar
Secretary
LIC OF INDIA
Ahmadabad Audit Centre
rravindrakumar
rravindrakumar
rravindrakumar.mop
+91 9726351246 Only Or
send TEXT ON +919427960310
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rravindrakumar@gmail.com
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