SWOT ANALYSIS OF SBI LIFE INSURANCE CO
Presented by.... Siva Rama Rama Krishna, Krishna, Sanchita, Sukamal, Sukamal, Smita, Smita, Soumya, Vivek
SBI LIFE INSURANCE CO. LTD AT A GLANCE `
Joint venture between State bank of India and BNP Paribas Assurance.
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SBI is the largest bank in India and BNP Paribas Assurance is France·s largest Insurance company.
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Investments: SBI - 76% and BNP Paribas ² 24% .
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The Company started its operations in 29th March 2001.
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Provides Life Insurance Solutions to Individuals and Corporates.
STATE BANK OF INDIA
Largest and oldest banking franchise of India dating back to 1806 AD.
6 Associate Banks, 16000 Branches all over the country.
BNP PARIBAS ASSURANCE
4th Largest Insurance company in France.
The Insurance arm of BNP Paribas Bank, the largest bank of France. Operations in 41 countries around the world
One of the oldest foreign banks with a presence in India dating back to 1860 AD.
A worldwide leader in Creditor insurance products offering protection to over 50 million clients.
STRENGTHS `
No. 1 Private Life Insurance company in India (as on 2009-10).
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Leverages the State Bank Group Relationship as a platform for crossselling insurance products.
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As it sells its products through banc-assurance division of SBI, therefore less need on spending money for establishing separate branch offices.
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Market share of 18.34% among private life insurers and a total market share of 6.44%.
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SBI·s access to over 100 million accounts across the country provides for a vibrant base for insurance penetration in the country.
STRENGTHS (CONTD.) `
Growth at a rate of 40 % .
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IRDA has never banned any of SBI Life·s product.
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Only private life insurance company to have posted profits (Rs 276 crores for the year ended March 31st , 2010 ) and declared bonus.
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Solvency ratio of 2.2 and share capital of Rs.1000 Crore, SBI Life is one of the most capital efficient life insurance companies in the industry.
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continues to maintain the lowest ´expense to GWP (Gross Written Premium)µratio in industry of 6.5 %.
STRENGTHS (CONTD.) `
Globally topping the prestigious international MDR Table ( Million Dollar Round Table ² 30 Lacs collections by an agent in a year ) .
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One of the market leaders in Unit Linked Plans by offering products as Smart ULIP, UNIT +, UNIT +2, UNIT +3 etc.
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Profitable business growth demonstrated by all key distribution channels.
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Certifications of ISO 9001:2000, ISO 2700:2005 ( Information security ) AAA rating by ICRA, CRISIL etc.
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Superior Claims Settlement Process ( certified by ISO 9001:2000 ).
STRENGTHS (CONTD.) `
Asset Under Management jumped by 96% to Rs 28,551 Cr and New Business Annualised Premium Equivalent (APE) by 37 % to Rs. 6,358 Crores.
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Restructured Customer Grievances Redressal Mechanism. Regional Directors and Regional Channel Heads resolves customer complaints at local level.
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Through ´Mypolicyµ portal in www.sbilife.co.in, customers can view all policy details including Payment Summary, Fund Value and Premium Calendar.
WEAKNESSES
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Less sales force than others ( LIC·s 3 field advisor : SBI·s 1 field advisor )
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Low productivity of banc-assurance people.
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People at top management/decision making level are from SBI. So, typical PSU attitude in many aspects.
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Hassle free online purchase of insurance policy is not available.
WEAKNESSES (CONTD.)
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Is less aggressive in generating business compared to other private life insurance players.
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Over dependence on the banc-assurance channels .
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Less branch office compared to others .
OPPORTUNITIES
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As only 12% of the 40 crores insurable population is insured, thus, a huge opportunity to reach out to more people.
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It has an edge over LIC as far as service is concerned. So, it can grab more market share from LIC by giving it a tough competition.
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Not so much requirement on establishment of Brand (already have a good brand image of SBI).
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A huge revolutionary change (PARIBARTAN) in SBI is going to happen,so there is an immense opportunity for SBI Life in future.
OPPORTUNITIES (CONTD.)
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Huge market potentiality in Rural markets which has been untapped till now.
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Higher market penetration by being more aggressive in banc-assurance channel of distribution.
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Huge opportunity to grab customers by being more active through other distribution channels as mall-assurance, brokers etc..
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Lower premium ULIP policy (<10000) can attract lower income segment market.
THREATS `
Huge competition from other pre-existing 22 players in the Life Insurance sector in India.
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ICICI Prudential, the market giant already pipped SBI Life to regain top position, garnering new business worth Rs. 303 crores (source Economic Times, 26 th May·10)
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New entrants in the pipeline of the life insurance business.
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New tie-ups of competitors with innovative distribution channels.
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The New Insurance guidelines from September ·10 onwards is really a big challenge for SBI Life·s business.