Diversification options for LIC

By: Ali Rassai M024

Shivansh Manish M029
Charu Shroff M030
Bhavik Surani M034
Ronak Ranka M041
Rushabh Ajmera M042
 LIC today

Aam aadmi Bima Yojana

Insurance plan
Special plans
Unit plans
Micro insurance plans
Withdrawn plans
Health plans
 What LIC can do
Related

1. Gadget insurance
2. Travel insurance
3. Financial consulting
4. Property insurance
5. Hospitals & Health Care
 Unrelated

1. Data selling
2. Banking
3. Reserves -> invest into real estate
4. Education (promote actuarial science)
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.
Porters Five force
Model:
POTENTIAL SUBSTITUTES
ENTRANTS UNIT PLUS (SBI
DLF PRAMERICA LIFE),
LIFE, STAR UNION NEW CAPITAL
DAI-CHI LIFE, GAIN (BAJAJ
FUTURE ALLIANZ) etc.
GENERALI LIFE,
SRIRAM SUNLAM INDUSTRY
LIFE COMPETITORS
LIC, BAJAJ
ALLIANZ, SBI LIFE,
RELIANCE LIFE,
HDFC STANDARD
LIFE, BIRLA SUN
LIFE, MAX NEW
BUYERS YORK LIFE, KOTAK SUPPLIERS
SWITCHING TO MAHINDRA GROWING
DIFFERENT POWERS
INVESTMENT BANKS, CA ARE
SECTORS FOR IMPORTANT
BETTER RETURNS, CHANNELS TO
UNDIFFERENTIATE REACH THE
D PRODUCT CLIENT. HIGH
BARGAINING
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 peoples 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
Attributes Responses

Percent

Multiple choice of policy

Service

Value for money

Reliability

Attractiveness

Country of origin

Brand Name