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    AJAY
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    Before privatization, LIC was the sole provider of life insurance in India and had low penetration and awareness levels. The entry of private insurers in 2000 increased competition and innovation in products, marketing, and distribution. This led to greater awareness, higher penetration rates, and improved services from LIC as it sought to maintain market share against aggressive private sector growth. The document discusses strategies for LIC to compete effectively in the evolving Indian life insurance market.

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    Before privatization, LIC was the sole provider of life insurance in India and had low penetration and awareness levels. The entry of private insurers in 2000 increased competition and innovation in products, marketing, and distribution. This led to greater awareness, higher penetration rates, and improved services from LIC as it sought to maintain market share against aggressive private sector growth. The document discusses strategies for LIC to compete effectively in the evolving Indian life insurance market.

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    655 views1 page

    Abstract Lic

    Uploaded by

    AJAY
    Before privatization, LIC was the sole provider of life insurance in India and had low penetration and awareness levels. The entry of private insurers in 2000 increased competition and innovation in products, marketing, and distribution. This led to greater awareness, higher penetration rates, and improved services from LIC as it sought to maintain market share against aggressive private sector growth. The document discusses strategies for LIC to compete effectively in the evolving Indian life insurance market.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
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    Abstract: The case is about the various changes that happened in the Indian Life Insurance sector after

    privatisation. Till privatisation, Life Insurance Corporation of India (LIC) was the only company providing life insurance services in India. LIC sold its policies as tax instruments and not as products giving protection against risk. Most of the customers were under-insured with no flexibility or transparency in the services provided. Before the entry of private players insurance penetration and awareness was very low especially in rural India The insurance sector opened up for competition from private insurance companies with the enactment of the Insurance Regulatory and Development Authority (IRDA) Act, 1999. As per the provisions of the Act, the IRDA was established on April 19, 2000. This marked the beginning of liberalization of the Indian insurance sector. By 2006, there were 14 private insurers in India whose market share was increasing every year. Innovative products, smart marketing and aggressive distribution helped the private sector grow within a very short period. Slowly but steadily, awareness about insurance was also increasing in India. The increase in penetration and awareness could be attributed to the stiff competition generated among public and private players. As a result of competition posed by the private insurers, LIC launched many new products, improved their services and increased expenditure on advertising. The case facilitates discussion on the strategies to be adopted by LIC to stay ahead of competition. It could also be used to discuss the future of the Indian Life Insurance sector. Pedagogical Objectives:

    What are the strategies adopted by private life insurers to grab market share from LIC? How should LIC use its strengths to maintain the market share it had in the life insurance market? What is the future of life insurance in India? LIC could join with some private insurers.

    Keywords : Life Insurance Corporation of India- LIC; Life insurance industry in India; Monopoly player; Competitive Strategies Case Study; Private insurers in India; Privatisation; Competition; Marketing; Distribution channels in Insurance; Bancassurance; Rural market; Strategy; Product innovation; Need based selling approach; IRDA; Unit Linked Insurance Plans-ULIP Contents :

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