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A PRESENTATION ON CASE STUDY OF PRIVATE LIFE INSURANCE COMPANIES IN INDIA : 

A PRESENTATION ON CASE STUDY OF PRIVATE LIFE INSURANCE COMPANIES IN INDIA SUBMITTED TO PROF. PARIMAL TRIVEDI dbmSPCE, VISNAGAR. PREPARD BY VIKAS PATEL - 43 BRIJ PATEL – 24 BHAGVAN KARNAVAT - 25 RAKESH GANDHI - 22

CONTENTS : 

CONTENTS Background Of Private Insurance Players.. Problem Recognition. Porter’s five force model.

BACKGROUND OF PRIVATE INSURANCE PLAYERS : 

BACKGROUND OF PRIVATE INSURANCE PLAYERS In, 1871- “ Bombay Mercantile Life Assurance Society” In, 1874- “ Oriental Government Securities Life Assurance Company” In. 1896- “ Bharat” In, 1897- “ Empire of India” In, 1912- “ INDIAN LIC Act” Period between 1928 to 1956 for development of insurance laws in India.

Slide 4: 

1st Sept. 1956, introduction Life Insurance Act. Formation & nationalization of Life insurance Corporation To break the Monopoly of LIC, The Govt. has proposed reforms…. “MALHOTRA COMMITTEE- 1993” “IRDA- 1999” Private insurance companies were interested because of this reforms….

PROBLEMS RECOGNITION : 

PROBLEMS RECOGNITION To adopt strategies for… Capturing rural and untouched semi-urban areas. Overcoming challenges from LIC. Supportive Reasons for problems:- Due to the traditional orthodox thoughts and beliefs of Indian peoples prefers Government Organization – LIC Indian people generally viewed insurance just sake of tax-saving device and ignores other insurance benefits. With the bankruptcy a few private companies had further triggered the lack of trust in private insurance..

Slide 6: 

Due to lack of infrastructure, long distance from city, poor distribution and high investment of expenditure Many Indian believe that life insurance companies had longer Locke-in investment period. Insurance product faced “Stiff competition”…

PORTER’S FIVE FORCE MODEL : 

PORTER’S FIVE FORCE MODEL

1. BARGAINING POWER OF SUPPLIER : 

1. BARGAINING POWER OF SUPPLIER

2. BARGAINING POWER OF BUYER : 

2. BARGAINING POWER OF BUYER

3. THREAT OF SUBSTITUTE PRODUCT : 

3. THREAT OF SUBSTITUTE PRODUCT Government bonds. Fixed deposits. Mutual fund. NSC- National Saving Certificate. Post office saving. Stock markets. Real estate. Etc…

4. THREAT OF NEW ENTRANCE : 

4. THREAT OF NEW ENTRANCE Low entry barrier. Possibility of 500% growth within next 4 years. Untapped area of rural and semi-urban…

5. INDUSTRY COMPETITORS RIVALRY AMONG EXISTING PLAYERS : 

5. INDUSTRY COMPETITORS RIVALRY AMONG EXISTING PLAYERS There are “stiff” competition among 16 different insurance players.