in his research paper stated that Life Insurance Corporation of India (L.I.C.I) dominated the Indian Life Insurance market. With the development of the Insurance Regulatory and Development Authority the (IRDA) Act in 1999 was a clear signal of the end of the monopoly of LIC in the insurance sector. It has become imperative for LIC to face the competition posed by the entry of new private players. The insurance industry has undergone a drastic change since liberalization, privatization and globalization of the Indian economy in general and the insurance sector in particular. With the entry of private players, the competition is becoming intense. After the entry of these private players, the market share of LIC has been considerably reduced.
They identified the strength as strong financial position, weakness included slack in expense management affecting margins. Opportunities for improvement include optimistic Indian economy. Threats to the company include intense competition.The Life Insurance Corporation in India (LIC), with its 40 years of experience and wide reach, is in an advantageous position. LIC is a largest insurance group and Investment Company in India. It's a state-owned where Government of India has 100 percent stake. Strengths include strong financial position. Weaknesses include slack in expense management affecting margins. Opportunities for improvement include optimistic Indian economy. Threats to the company include intense competition. The study concluded that LIC is a largest Insurance group and Investment Company in India.LIC is obtaining a lot of weaknesses and threats particularly the lack of innovation, payments from banks on five different dates in a month, ECS will bounce along with the penalty, the policyholder will not get any renewal receipt for subsequent months, tough competition, economic crisis and so on. Hence the LIC must take necessary actions to remove all weaknesses and threats of the LIC. If the LIC remove all the hurdles that time the LIC market economy will flourish a
The Indian life insurance sector has witnessed a robust growth with the advent of private players in 1999. The growth in the business of life insurers both private and the public is remarkable. A product mix company has changed significantly and an array of contemporary products on par with international standards is offered. It takes a minimum of six to seven years for the life insurance companies to reach the breakeven point. Hence, in order to enhance their market share and to have a sustainable premium growth. Companies have started expanding their presence by establishing branches all over the country. They are also bringing another innovative form of distribution channels.Though the Indian insurer’s track record of performance is reasonably good, it cannot be denied that such a performance to a large extent is the outcome of various prudential policies followed by the IRDA. Moreover, there are few challenges faced by the Indian insurance companies. These companies at present spend around 50% of their expenses for developmental purposes. So, expenses management may be a daunting task for them. Another area of concern is the shortage of actuaries. Given the rapid rate of growth, there is an acute need for more trained actuaries as actuarial skills are fundamental to the development of risk management capacity.Indian life insurance companies also face