Stage 2On

Strategic management LIC

Presenter’sSalil

PrateekVijay

Introduction• what is Insurance?

‘Insurance’ is basically a sharing device. The losses to assets resulting from natural calamities like fire, flood, earthquake; accidents, etc. are mate out of the common pool contributed by large number of person who is exposed to similar risks.

• Milestone of Indian life insurance industry:-1912: The Indian Life Assurance Companies Act enacted as the first statute to

regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to

collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with

the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies taken over by the

central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

Need of policies

• lethargic staff, large scale of corruption ,ultra slow decision

• GDP 06-07 9 %, • GDS 06-07 34.3%• New Product Development to

decrease competitive pressure

Competitors

Conclusion

LIC (Life Insurance Corporation of India) still remains the largest life insurance company accounting for 64% market share. Its share, however, has dropped from 74% a year before, mainly owing to entry of private players with innovative products and better sales force.