Life Insurance Corporation Of India Research Articles

The present scenario of life insurance corporation of India

The Insurance industry is going through drastic changes. Innovative plans, electronic insurance and minimal role of agents all have contributed towards the modernization of insurance industry in India. Now we can have the option of digitalized insurance policies. There are various players in insurance market competing for delivering satisfaction to the policyholders. This article will through ample light on the recent trends and developments in insurance industry in India.

Investors’ Preference towards Life Insurance Corporation of India

Investments are both important and useful in the context of present day conditions of the economy. It is a common saying “One paisa saved is one paisa earned”. Life is a roller coaster ride and is full of twists and turns. Insurance policies are to safeguard against the uncertainties of life. The insurance principle comes to be more and more used and useful in modern affairs. Not only does it serve the ends of individuals, or groups, it tends to pervade and to transform modern social order, too. At this juncture, the extent to which Life Insurance goes to attract the investors has been undertaken in this study. The analysis of the data evidenced that investment were not determined by either income or education of the respondents, instead they understood the necessity of investment in life insurance for their future requirements which is said to be forced Investment. So, it has been concluded that making sound investment decision requires both knowledge and skill apart from other factors.

Consumers Awareness towards Insurance Companies and their

The insurance sector is growing rapidly all over the world. The insurance industry is gaining key position in the world economy and playing a significant role to cover the life and business risk of millions. At present, the insurance industry is in a nascent stage. The impact of privatization in risk business in India has shown its impact on transformation from the state of monopoly to mushrooming companies offering innovative products to the Indians. The growth in the life insurance sector has shown new heights and the functioning of private companies has given tough challenge to Life Insurance Corporation of India. Within a short span of time, private insurance companies have acquired more than 25 per cent of the life insurance market. Many changes have taken place in the processes and procedures of insurance business in terms of its format and products as well the mindset, motives, interests, and expectations on the part of the customers also. The customers have become more vigilant, calculative and calibrated not only in terms of risk coverage but look forward for safety of investment and higher rate of returns on the saving in insurance sector

Growth of Indian Life Insurance Density and Penetration

The Government of India nationalized insurance industry in 1956 on 19th Januaryleading to the amalgamation of154 Indian, 16 non-Indian Insurers and 75 provident societies, in total 245 Indian and foreign insurers, to form the Life Insurance Corporation of India. The Life Insurance Corporation of India, a public sector corporation, enjoyeda monopoly in the business for four decades until the entry of private life insurers with foreign joint ventures having 26% Foreign Direct Investment(FDI).As per one of the major recommendations of Sri R N Malhotra committee, on 19th April 2000, Insurance Regulatory and Development Authority was set up by the Government of India through the passing of an act of the Parliament. The IRDA aimed to promote insurance and protect the insured. Since its formation, the IRDA has been proving itself successful in promoting orderly growth and development in Indian Insurance sector. This study is an attempt to study life insurance density and penetration in Indian life Insurance industry toassess the growth in theexpansion of life insurance business in India. An analysisis made, and some conclusions are drawn with the help of growth percentages and trend calculations

Customer Preferences for Life Insurance Policies:A Study Using Conjoint Analysis

Life insurance is one of the popular financial services in India as life insurance premium, is used for income tax deduction under instruments under 80 CC of the Income Tax Act by tax assesses. Life insurance is one of the largest and fastest growing service industries in India. New products like ULIP (Unit Linked Insurance Polices) and use of internet technology and reintermediation have changed the dynamics of the life insurance industry. Life insurance accounted for 19.0% of the total household financial assets in India of INR 12, 356 billion in the financial year 2014-15. To boost the household savings, government has hiked the exemption limit by individuals in financial instruments from Rs. 1 lakh to Rs. 1.5 lakh. Post-liberalization of life insurance industry, old and well established public sector giant Life Insurance Corporation of India (LIC) is the market leader. There are numerous studies done to assess demographic variables association with the life insurance purchase but studies associated with policy preferences using multivariate analysis have been sparse. The current study makes modest attempts to fill the gap by assessing the life insurance policy preferences towards LIC using conjoint analysis based on decompositional approach and discusses the managerial implications.

Market Concentration and Firm Performance : Evidences from the Indian Life Insurance Industry

In the pre-reform era, Life Insurance Corporation of India (LICI) dominated the Indian life insurance sector with a market share of close to 100%. But the situation drastically changed since the beginning of the year 2000. With the development of the Insurance Regulatory and Development Authority of India (IRDAI) Act in 1999, private players started entering into the Indian life insurance market. At the end of the FY 2014-15, the market share of LICI stood at 73.48% with the number of private players having risen to 23 in the country's life insurance sector. One of the reasons for such a decline in the market share of LICI during the post-reform period could be attributed to the increasing competition from the private players in the country's life insurance sector. The present study attempted to evaluate the extent of concentration and competition prevailing in the Indian life insurance market over the study-period from 2008-09 to 2014-15, against the backdrop of the global financial crisis. In addition, an attempt was made to ascertain any significant differences in the performances of the 18 life insurance companies in India, inclusive of LICI, in terms of life insurance premium underwritten during the period under review. The present study revealed the pre-existing dominance of LICI in the Indian life insurance market, both in terms of market concentration and premiums underwritten, even after 15 years since the privatization of the country's insurance sector.

Review of Pension Schemes in India

In an immensely populated country like India, as the years pass by the population is showing an increasing trend, and also the numbers of aged persons has been increasing at a faster pace. Therefore this backdrop leads to the prominence of the social security pension schemes, and the magnitude of the fund invested to reform the India’s pension system. Thus this paper tries to create a meta-analysis of the reasons and probable aspects behind the effectiveness of the pension schemes. The paper also provides an outline between the differences between organized and unorganized or informal sector as an important aspect to decipher the reason creating a backlog in the Indian pension system, this leads to the emergence of Life Insurance Corporation of India (LICI) as a sole proprietor to cover workers under the informal sector and private sector. Thus the core objective of the paper is to analyse the importance of LICI considering their pension schemes, and whether the effectiveness of the pension schemes (as operated by the central government) has a causal relation with the pension schemes run by LICI or not. Again, the a part of the paper provides a highlight on the active participation of government to create a structured pension scheme through Atal Pension Yojna, which was launched in the year 2015, during the budget planning of 2015-2016. The ideology of this paper starts with the existing features and details of Atal Pension Yojna. The motive of this scheme (as per the explanation provided by PFRDA) was to eradicate the old-age insecurity faced by individuals. The pension was designed in such a format that with an investment of only Rs 1000 (initial rate of premium, premium ranges from Rs 1000-Rs 5000) by individual within the age range of 18 years to 40 years, will lead to an accumulation of a lump-sum corpus that will be effective during old-age of the individuals. But there are few flaws that can be observed within the scheme, therefore, this paper also tries to create a meta-analysis about the structure of Atal Pension Yojna and also tries to provide a brief explanation on the probable flaws of the scheme.

Improving customer satisfaction by increasing the reach: Life Insurance Corporation of India

Subject area Strategic Management and Marketing. Study level/applicability Management students (MBA). Case overview In the present times of global competition and busy schedules of individuals, it is expected that companies provide service with security, sincerity and flexibility keeping pace with changing global scenario of marketing. Service receiver expects competitive and optimum facilities with ease while sitting in any corner of the world at any time of the day. It implies that the service provider should be available at all times/all places for satisfying the needs of the customers. A daunting task ahead of Life Insurance Corporation of India (LIC) was to change its conventional approach and work toward a newer, user-friendly one. The top management, i.e. the Board of Directors, took up the task of identifying a quicker but securer approach to provide optimum facilities to the policyholders. Expected learning outcomes Achieving customer satisfaction through alternate collection channels and retaining market share, role of customer servicing in creating competitive advantage, challenges for a large public sector enterprise – traditional approach or modern approach, role of private companies in development of insurance industry, creating awareness about the product/service through different distribution channels and use of information and telecommunication technologies to reach remote places, are the expected learning outcomes. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Subject code CSS 8: Marketing

Evaluation of LIC in Post Liberalised Era

The constitution of IRDA in August, 2000, opened up the market for private players in the insurance sector. In spite of privatization, the public sector giant, Life Insurance Corporation of India (LIC) has been still dominating the domestic insurance market. The paper reviews secondary study conducted to narrate ongoing debates on the privatization and globalization of insurance sector. Then, a comparative analysis of pattern of growth of life insurance industry comprising of LIC and other private players has been carried out. The paper finds that after over 40 years of successful journey, LIC still holds the dominant position while private players also gain grounds. However, though Indian Insurance sector has a huge potentiality, penetration of life insurance in Indian society is still limited as evident by various indicators. Moreover, LIC once having monopoly in this sector, is losing out to its private competitors. Unless strategic issues such as diversification of products, changing demography, demand for pensions, and allowing greater freedom with respect to its investments are addressed, LIC may find it difficult to adapt to liberalized scenario. The present study is an endeavor to evaluate the growth of LIC of India in the competitive scenario of liberalized and globalized insurance sector.

Indian Life Insurance Market and Corporate Performances: A Study of Selected Firms

In the pre-reform era, Life Insurance Corporation of India (LICI) dominated the Indian life insurance market with a market share close to 100 percent. But the situation drastically changed since the enactment of the IRDA Act in 1999. At the end of the FY 2012-13, the market share of LICI stood at around 73 percent with the number of players having risen to 24 in the countrys life insurance sector. One of the reasons for such a decline in the market share of LICI during the post-reform period could be attributed to the increasing competition prevailing in the countrys life insurance sector. At the same time, the liberalization of the life insurance sector for private participation has eventually raised issues about ensuring sound financial performance and solvency of the life insurance companies besides protection of the interest of policyholders. The present study is an attempt to evaluate and compare the financial performances, solvency, and the market concentration of the four leading life insurers in India namely the Life Insurance Corporation of India (LICI), ICICI Prudential Life Insurance Company Limited (ICICI PruLife), HDFC Standard Life Insurance Company Limited (HDFC Standard), and SBI Life Insurance Company Limited (SBI Life), over a span of five successive FYs 2008-09 to 2012-13. In this regard, the CARAMELS model has been used to evaluate the performances of the selected life insurers, based on the Financial Soundness Indicators (FSIs) as published by IMF. In addition to this, the Solvency and the Market Concentration Analyses were also presented for the selected life insurers for the given period. The present study revealed the preexisting dominance of LICI even after 15 years since the privatization of the countrys life insurance sector.

Rectangularisation Issues in Health Economics & Insurance: Measures and Mitigations

Aim: Actuaries are financial engineers who construct arrays of risk models combining mathematical techniques in order to carry out required actuarial calculations, such as reserve valuation and pricing. The main purpose is to identify some reliable models which price risk factors embedded in insurance products. Health insurance products which are very different in nature from life insurance products must be examined and priced carefully. This paper discusses predominantly two risks. Excess claims ratio and Rectangularisation risks. Background: The first author, Dr. S. Jayaprakash was responsible for Enterprise Risk Management with MetLife India. He was earlier associated with Life Insurance Corporation of India & Oracle Financial Services. Dr. P. K. Dinakar, the second author, qualified as Fellow of the Institute of Actuaries of India, was Chief Actuary of MetLife India Insurance. He was earlier associated with Life Insurance Corporation of India & Birla Sunlife. The third author, Dr. Michael Ha, FSA, MAAA, CFA, CPA (Australia), FRM, PRM, LLM, was Vice President of Strategic Business Initiatives Units at ING Life Insurance in its Taiwan operation. He started his actuarial career at MetLife, Canada. Earlier, the first and third authors worked on a research paper titled “Modeling Policyholder Behavior through Insurance Resonant Marts for Pricing Options and Guarantees” [1] which was presented at the 5th World Congress on Engineering and Technology. The seven authors decided to collaborate on the current research paper for health insurance design and financing purposes.

Performance Evaluation of Life Insurance Corporation of India for the past decade: Bibliography of Unclassified Literature

Performance Evaluation of Life Insurance Corporation of India for the past decade: Bibliography of Unclassified Literature

Fundamental reengineering for endurance in competitive market: a case study of life insurance corporation of India

The Indian life insurance industry witnessed a monopoly period till the year 2001 when a state owned company, Life Insurance Corporation of India (LIC), was the only player in the Indian market. Scenario got changed all of a sudden in the year 2000 after the privatisation of the insurance sector when foreign players were allowed to enter through joint ventures with Indian companies. This came as a major issue in competitive market in front of LIC to face the challenges given by the companies equipped with global expertise and modern technology as LIC had been a traditional Indian company enjoying a non-competitive, protected market since decades. Consequently, post liberalisation market share of LIC got significantly declined in the next couple of years. A complete overhauling of the system was required to meet the hard-hitting challenges. Rudimentary re-engineering of the entire system was the only remedy to crack the issue to increase insurance penetration and to remain as a market leader.

Policyholders Service Satisfaction on Marketing Mix of Life Insurance Corporation of India

In today's challenging business environment, customer service and customer satisfaction are emerging as key competitive advantages. Life Insurance Corporation of India (LIC) enjoyed monopoly in life insurance sector during the pre-nationalized period. Life insurance is customer based business where retention of existing customers is the biggest challenge in present-day market competition. The study attempts to measure customer satisfaction level on various insurance services offered by LIC. This paper also presents different marketing strategies that the LIC will use to achieve its objectives, and it consists of broad decisions on target markets and market positioning and mix. The primary research was conducted through a market survey consisting of 600 respondents from urban and rural areas of Coimbatore district in Tamilnadu with a well structured questionnaire. Simple statistical tools like percentage and mean ranking scores were employed for data analysis. The study reveals the fact that the majority of the respondents were highly satisfied with the features of the policy, loan on policy, premium charged and effectiveness of advertisement.

Determinants of Insurance Investment: A case study of Life Insurance Corporation of India

Indian insurance markets have changed radically and deeply in the last countable years. Deregulation, globalization of insurance institutions, intensified competition, electronic commerce, bancassurance, and the emergence of new risks are among the challenges confronted by insurance markets. These trends pose both global and local challenges for insurance firms as key advancement in insurance and financial services markets influence insurance markets on a global scale. The paper endeavoured to link insurance investment decisions with underwriting activities of insurance companies. Although, underwriting and investment are two important and related business activities of insurance companies, impact of underwriting activities on investment for life insurers has not been rigorously examined in the literature. Using a sample of public life insurer, this article conducts an empirical investigation of how underwriting impact investment in the period of 2001–2014. The result of study suggests that premium and claim is significantly influenced the investment of insurance sector. In the aftermath of expanding liberalization in the insurance industry together with the worldwide financial crisis has posed a great deal of challenges for insurance regulatory authorities in monitoring investment of insurance companies. Researcher believes the current paper provides some helpful bits of knowledge in this vein.

Determinants of Insurance Investment: A case study of Life Insurance Corporation of India

Determinants of Insurance Investment: A case study of Life Insurance Corporation of India

Impact of Reputation, Ownership Pattern, Quality of Service and Manpower on Overall Satisfaction of the Customers of Life Insurance Corporation of India

The overall satisfaction of customers depends upon a number of factors where over times these factors vary culture-wise, situation-wise, nation-wise, sector-wise as well as industry-wise. These factors are not only playing an important role in customers’ mind about the selection of a particular insurance company among all other existing life insurance companies in the present competitive insurance market but also influencing their overall satisfaction with their service providers. As nowadays customer satisfaction has become the ultimate goal to the different service providers, so considering own reputation and ownership, life insurance companies are dedicatedly involved in providing quality of services to their customers in order to satisfy them with the help of their knowledgeable and well-trained manpower. Observing the usage pattern of the life insurance customers, the researcher in this paper tried to examine whether reputation, ownership pattern, quality of services and quality of manpower have any impact on the overall satisfaction of the customers of Life Insurance Corporation of India (LICI) in Burdwan district or not.

Augmentation of Life Insurance Services with the Help of Information Technology Enabled Services

Globalization and emergence of information technology has changed the customers' socio-economic culture and human interactions are now significantly being replaced by the interactions of human-technology where information technology is playing the most important role in providing variety of services to the customers in order to satisfy them. Like any other companies, life insurance companies are also trying to gain the maximum utilization of the information technology in most efficient and effective way in the business operation especially at the time of delivery of different types of services to the customers in the competitive market where customers are fully aware of their needs and requirements, expectations, information technology, information technology enabled services. In the present context, the researcher in this paper tried to understand how life insurance services can be augmented with the help of information technology enabled services with special reference to the Life Insurance Corporation of India (LICI) in Burdwan district, West Bengal.

A Study of Product Quality of Selected Public and Private Sector Life Insurance Companies

The need for insurance is as old as commerce and trading in the civilized world. Risk is inherent to life, commerce, trading etc. The insurance will provide safety to it. Insurance sector has been playing a leading role in the financial system of India. It has also been facilitating an objective to build an efficient, effective and a stable economic environment in India. It also caters to the needs of the both real economy and socio-economic objective of the country. It is making inroads into the interiors of the economy and is being considered as one of the fast developing areas in the Indian financial sector. It has been mobilizing long-term saving through life insurance to support economic growth and also facilitating economic development. In India after a monopoly of public sector life Insurance company for decades, the sector was opened for the private players in order to bring consumerism in real sense. The healthy competition among these companies has resulted in to better quality, customizations, innovations, choice, value, and affordability of the product offerings. The current study attempts to study the product offerings of largest public sector life insurance Company of India Life Insurance Corporation of India and the private giant ICICI prudential life insurance company Ltd on the aspects of applicability of SERVQUAL dimensions to current product offering and to study and compare the perception of customers in terms of service quality. The study discovers their present levels of the product offerings on the basis of SERVQUAL dimensions. The study also attempts to compare perceived quality of product offerings of the selected life insurance companies on SERVQUAL dimensions. It is an exploratory research study, which after development of conceptual frame work deploys structured instrument and statistical analysis tools like Eigen value scores and variance to measure the output. This study shall be helpful to give a wonderful insight to the practicing managers to identify the gap and take

Emerging Trends in Distribution in the Life Insurance Sector in India: A Study of a few Leading Players

The life insurance industry in India had its birth in the early part of the nineteenth century. For better management of the insurance business, several Acts have been passed from time to time. Two noteworthy events in the history of life insurance are (i) the formation of the Life Insurance Corporation of India in 1956, which served as a monopoly till the year 2000 followed by (ii) the opening up of the insurance sector to the private players in 1999, who were given the permission to operate either single-handedly or as a joint venture with any other private player(s) and/or foreign partner. This drastic regulatory change brought an end to the monopoly status of LIC, and also encouraged the private players to enter into the insurance space. To keep pace with the fast-changing industry environment, one of the functions that is gaining strategic importance is the coming up of newer channels of distribution, which would spread the business to newer markets and serve the customers cost-effectively, steadily, and speedily. This exploratory research (which was carried out in the time period from May-July 2012) discusses the various distribution channels (that emerged in the deregulated period and changed the overall industry trend) operating over a period from 2005-06 to 2009-10. The researcher considered seven dominating private players in the life insurance industry to understand the recent patterns in distribution. The analysis clearly shows a move-away from the traditional channels by the private sector.