Stage 2

On
Strategic management
LIC

Presenter’s
Salil
Prateek
Vijay
 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.