sbi_mkt_rept_final_755

Welcome One and All:

Welcome One and All Presentation By Mr. Nitin Bhatia Mr. Kiran Radhakrishnan Mr. Elvis D’souza Mr. Dinesh Bhogal Mr. Thomas Joseph Mr. Samir Kulkarni Mr. Barun Sarkar

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IN COLLABORATION WITH Oasis Pvt. ltd State Bank Of India PRESENTS

Company Background:

Company Background American by origin Business undertaking is Insurance World wide turnover is 16 Billion USD Global presence in 29 countries Dominant as Market Leaders in 16 countries

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Vision : To Be There All The Time To Secure the customer against All Odds And live A Safe life Mission : Providing Excellence In All Walk of life.

Why State Bank Of India.:

Why State Bank Of India. State Bank of India (SBI) is a household name, and it stands as the last word for financial strength and security in the country. SBI's illustrious background dates back to the year 1806 when it started business, as a presidency bank, known as Bank of Bengal. Over the long journey, it has learnt to combine the best of banking practices handed down from the imperial management with the more dynamic ways of doing banking in the modern India. It has grown as a responsible giant in the banking field over the years. SBI is the largest bank in India with deposits of Rs 3,67,000 crore as on March 31, 2005. It dominates the Indian banking sector with a market share of around 20% in terms of total banking sector deposits. The increasing focus on upgrading the technology back-bone of the bank will enable it to leverage its reach better, improve service levels, provide new delivery platforms, and improve operating efficiency to counter the threat of competition effectively. Once the core banking solution (CBS) is fully implemented, it will cover over 10,000 branches and ATMs of the State Bank group, and emerge as the strongest technology enabled distribution network in India. The increasing integration of SBI with its associate banks (associates) and subsidiaries will further strengthen its dominant position in the banking sector and position it as the country’s largest universal bank.

Suggested Insurance Policy ( Non Life):

Suggested Insurance Policy ( Non Life) Health Insurance Property Insurance Automobile Insurance Terrorism Insurance Casualty Insurance Workers' compensation

Situational Analysis:

Situational Analysis Market Characteristics Key Success factors Competition Products & Services Technology considerations Legal Environment Social Environment Problems & Opportunities

Market Characteristics:

Market Characteristics Public Sector presence has grown the market Compelled private players to develop new products PSU’s have concentrated more on traditional products Traditional products include Fire and Motor Insurance Both players are experimenting in newer products Reach of insurance products from PSU Insurance cos are limited Range of products offered are inadequate PSU insurance companies are growing at 4.98% per year Private Sector companies are growing at 56.15 % per year

Success factors:

Success factors Strategizing to collect global premium Ratio of Incurred Claims to Net premium is kept low Maintenance of Optimum Acquisition Costs Management expenses must be compliant with Sec 40c Maintain the higher Solvency Margins Designing customized products for customers Maintaining competitive pricing strategies Selecting and retaining channel partners Positioning the agency to be very customer centric

Competitors:

Competitors

Competition between Private Players:

Competition between Private Players Please check the percentage of share and add the share percentage of Birla Sun Life and Kotak if any

Technology:

Technology Procurement of a customized enterprise solution software Wide area connection of regional offices with head office Leased line connections can be preferred Must enable voice and data transfer Database across organization must be one Data exchange & integration from operating office to head office should be ensured This enables business intelligence & multi dimensional analysis of data

Legal environment:

Legal environment The Agency must be Compliant to the regulations laid down by IRDA and RBI Must be registered under the Indian Companies Act 1956 Core business must be General insurance or Reinsurance The minimum paid up equity capital must be 100 crores Incase of reinsurance business the paid up capital must be 200 crores Must be compliant to the Policy holders Interest Regulations Act 2001 with IRDA Strictly maintain solvency margins as per compliance Grievance redress and claim settlement machinery must be in accordance with Insurance Ombudsman Act All communications with shareholders, stakeholders, government, regulators and consumers must be approved from IRDA

Opportunities:

Opportunities Tapping growth visible in organized & unorganized markets Partnering Corporate Agency Relationships Total risk management services will help the agency to tap big corporate accounts Capture market segments which the public sector has left underinsured Capitalize on the demographic change in the country Using the company’s global brand equity to leverage the positioning of the Indian arm Presence of a strong 300 mn middle class base who will play an important role in getting their assets insured An opportunity to be positioned on the basis of need and varieties

Overview of the Indian Economy:

Overview of the Indian Economy 12 th largest economy in the world A 570 billion (USD) in real GDP Consistent & Non Fluctuating growth in terms of GDP 8% Stability in the Balance of Payments position Stable and low inflation rates ( 5.5 % approx)

Threats for the new comer:

Threats for the new comer Public Sector Monopoly in the market place Brand purchase consideration with PSU’s Insurance Cos Select Indian private sector companies growing at 50% per year Lack of a banking presence resulting in loss of business via cross selling IRDA’s watchful compliance, audit and regulatory norms means the company should work with stricter benchmarks and performance metrics A growing market, limited distribution presence and similar product portfolio will be a initial threat to the 1 st financial quarter sales

Market Launch For A Period Of Five Years:

Market Launch For A Period Of Five Years Personal Commercial Industrial Social

Product During The Launch Period:

Product During The Launch Period Personal category Medi-claim policy Personal Accident policy House Holders policy Motor policy House Hold Appliances policy

Commercial Category:

Commercial Category Shop Keepers policy Marine Insurance policy Aviation policy

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Industrial category Fire policy Burglary policy Machinery breakdown policy Plant & Machinery policy Goods Packaging policy

Liabilities Policies:

Liabilities Policies Public Liabilities policy Product Liabilities policy Directors & Officers Liability policy Employers Liability policy

Target Market:

Target Market Identification of markets on the basis of market segments like geography and behavior Retail markets would include the salaried segment, professional credit, medi- plus and the small scale self employed segment Whole sale markets would include mid size, small and medium scale enterprises, corporate and industrial houses

Approach:

Approach Ratio of Incurred Claims to Net premium is kept low Maintenance of Optimum Acquisition Costs Management expenses must be compliant with Sec 40c Maintain the higher Solvency Margins Designing customized products for customers Maintaining competitive pricing strategies Selecting and retaining channel partners Strategizing to collect global premium Positioning the agency to be very customer centric

Marketing Strategy:

Marketing Strategy Strategizing to collect global premium Ratio of Incurred Claims to Net premium is kept low Maintenance of Optimum Acquisition Costs Management expenses must be compliant with Sec 40c Maintain the higher Solvency Margins Designing customized products for customers Maintaining competitive pricing strategies Selecting and retaining channel partners Positioning the agency to be very customer centric

Media Approach / Expenditure:

Media Approach / Expenditure Media Allocation would be Advertising budget : 15 crores Per Quarter 27%- (Print)-Magazines & Publications 06%- Outdoor (Hoarding, Bus Shelters Etc.) 64%- Airtime on Television 03% - Telecom, Internet & Movable ads

Manpower Required:

Manpower Required Country wide Branch break up Business Development : 7 HR : 2 Finance : 2 Back Office : 15 Branch Head : 1 IT : 2 Total Staff Per Branch : 29 Head Office Requirement : 45

Incentive Plan:

Incentive Plan All messaging and communications must reflect the central positioning statement of the company Adopting Above the Line strategies to pull the customer Above the Line involves high spending through television, radio , print & outdoors creating high recalls to build up consumer demand for the product ( Pull Strategy) A “push” promotional strategy makes use of a company's sales force and trade promotion activities to create consumer demand for a product. Below the Line campaigns are more effective in generating public relations, low in cost, direct customer feed back and valuable database for CRM

New Plans:

New Plans Credit insurance Short-Term Disability Cancer/Specified-Disease

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Launch Place : Mumbai Country Operations : Ahmedabad Indore Delhi Chandigarh Calcutta Hyderabad Bangalore Guwahati Bhubaneshwar Lucknow

Budget for Oasis for the Financial year 05-06 (Per Qtr):

Budget for Oasis for the Financial year 05-06 (Per Qtr) Media Budget : 10 Crs. Sales & Distribution : 30 Crs. Printing & Stationery : 20 Crs. Miscellaneous expenses: 5 Crs.

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Balance sheet of Oasis for the financial year 05-06 Liabilities Amount Amount Assets Amount Amount in Crores in Crores in Crores in Crores Share Capital Equity share capital 4 Fixed Assets 6 10% equity share capital of Rs 100 each Cash in hand/ at bank 4 Miscellaneous Expenses 5 Preference share capital 12% preference share capital of Rs 100 each 1 Reserves & surplus Fixed deposits 6 Sundry creditors 4 Total 15 Total 15

Questions:

Questions

Thank You:

Thank You