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INSURANCE SECTOR

INTRODUCTION TO LIC

Formed in September 1956 by an Act of Parliament, LIC Act 1956

Network of eight zones - 100 divisions and 2,048 branches

It has assets estimated of INR 13.25 trillion and

provides employment to 115,966 workers including employees and agents

INTRODUCTION TO LIC

Vision: A trans-nationally competitive financial conglomerate of significance to societies and Pride of India.

Mission: To explore and enhance the quality of the life of people through financial security by providing products and services of aspired attributes with competitive

returns and by rendering resources for economic development.

Objective : Maximize mobilization of people’s savings by making insurance-linked savings adequately attractive.

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PEST ANALYSIS OF LIC

POLITICAL FACTORS: INCREASED SERVICE TAX ON PREMIUM 

ENDING OF GOVERNMENT MONOPOLY 

INCREASE IN FDI LIMIT 

FAVOURABLE REGULATIONS FOR RURAL INSURANCE 

ECONOMICAL FACTORS:  INCREASE IN GROSS DOMESTIC SAVINGS 

CONTRIBUTION TO COUNTRY’S GDP  

ROLE IN GOVT. SECURITIES MARKET  

BIGGEST DOMESTIC PLAYER IN EQUITY MARKETS

PEST ANALYSIS OF LIC

SOCIAL FACTORS: LOW INSURANCE COVERAGE

INCREASE IN LIFE SPAN AND RISE IN ELDERLY POPULATION  

UNCERTAINITY ABOUT LIFE  

CHANGING INDIAN PERCEPTION 

TECHNOLOGICAL FACTORSAUTOMATION OF PROCESSES 

INTERNET DRIVEN INFORMATION ERA 

BUSINESS PROCESS MONITORING

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PEST ANALYSIS OF LIC

LEGAL FACTORS: REGULATORY BODIES

RENEWAL OF REGISTRATION

REQUIREMENTS AS TO CAPITAL  

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INDUSTRY ANALYSIS

SWOT ANALYSIS

Strength:•Dedicated Employees.•Well Efficient Management.•Technology•Diversification of funds.•Strong and popular brand name•Adaptability to changes.

Weakness:•Lack of good services.•Lack of awareness about insurance among people.•Less coverage in Rural Areas.

SWOT ANALYSIS

Opportunities:

•Fast growing economy.

•Increasing per –capita income in India.

•Saving behavior.

•High growth of ULIP industry.

Threats:

•Arrival of new entrants in the insurance industry.

•Cut throat competition within the industry.