2. AGENDA
 ABOUT INSURANCE INDUSTRY
 SWOT ANALYSIS
 EFE MATRIX
 BCG MATRIX
 PEST-LE-DLCSCC
 MCKINSEY DPM

3. 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)

4. 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

5. Opportunities :
 UNTAPPED MARKET
 FDI
 NEW FACILITIES
 CONSIDERED AS A GOOD INVESTMENT OPTION
Threats :
 NATURAL CALAMITIES
 INSURANCE FRAUDS

6. EXTERNAL FACTOR EVALUATION (EFE) MATRIX
KEY EXTERNAL WEIGHT RATING WEIGHTED SCORE
FACTORS
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

7. BCG MATRIX
Company Market share Relative market Relative
(%) share 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

8. 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
0
(Sahara)0.007 (40.61%)
(Shriram)0.003
CASH COW
DOG
LOW
-437.5%
SOURCE:IRDA March 2006

9. 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

10. SOCIAL ENVIRONMENT
 Greater concern for ethics
 Healthier life style
TECHNOLOGICAL ENVIRONMENT
 Increased cost reduction
 Fast pace of change

11. DEMOGRAPHIC ENVIRONMENT:
 Changing family structure
 Education Level
 Geographic Shifts
LABOUR MARKET
 Willingness to perform social duty
 High attrition Rate

12.  Suppliers
 Customers
 competition

13. 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 √

14. CONTD……
7.PRICE COMPETITIVENESS √
8.REPUTATION √
9.MARKET SIZE √
10.INDUSTRY PROFITABILITY √
11.QUALITY √
12.GEOGRAPHY √
13.CUSTOMER AND MARKET √
KNOWLEDGE