Summary |
As India begins deregulating the life insurance industry, LIC is in a unique position – a monopoly player with strong position in an underdeveloped market
Deregulation is likely to result in considerable challenges but also tremendous opportunity for LIC
- New highly-skilled players will threaten LIC by going after the most profitable business segments
- But deregulation will stimulate market growth allowing LIC to realize greater profits despite lower market share.
Competition will be daunting; we envisage a scenario where LIC is challenged by a powerful combination of established Indian financial institutions assisted by skilled global insurers
- Foreign players will bring experience in innovation and free market competition
- Indian players will bring established financial services distribution networks and reputable names which can be quickly leveraged in the insurance market
LIC has taken steps to strengthen its business, but there are clear opportunities for further improvement; if LIC confronts this challenge proactively, it can enhance performance and need not view deregulation as a threat.
BA & H is uniquely positioned to help LIC with his challenge
- One of the world’ leading management consulting firms
- Unrivaled focus on implementation and measurable results for clients
- Strong position in the Asian region and, specifically, in the Indian market
- Deep experience in life insurance both globally and regionally
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