SWOT ANALYSIS OF SBI LIFE INSURANCE CO

Presented by.... Siva Rama Krishna, Sanchita, Sukamal, Smita, Soumya, Vivek

` ` ` ` .SBI LIFE INSURANCE CO. SBI is the largest bank in India and BNP Paribas Assurance is France·s largest Insurance company. Provides Life Insurance Solutions to Individuals and Corporates. The Company started its operations in 29th March 2001. Investments: SBI .76% and BNP Paribas ² 24% . LTD AT A GLANCE ` Joint venture between State bank of India and BNP Paribas Assurance.

16000 Branches all over the country. ‡ ‡ . A worldwide leader in Creditor insurance products offering protection to over 50 million clients. 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.STATE BANK OF INDIA ‡ ‡ Largest and oldest banking franchise of India dating back to 1806 AD. BNP PARIBAS ASSURANCE ‡ ‡ 4th Largest Insurance company in France. 6 Associate Banks.

1 Private Life Insurance company in India (as on 2009-10). Market share of 18. therefore less need on spending money for establishing separate branch offices. Leverages the State Bank Group Relationship as a platform for crossselling insurance products.STRENGTHS ` No. SBI·s access to over 100 million accounts across the country provides for a vibrant base for insurance penetration in the country. ` ` ` ` .44%. As it sells its products through banc-assurance division of SBI.34% among private life insurers and a total market share of 6.

1000 Crore. SBI Life is one of the most capital efficient life insurance companies in the industry.5 %. continues to maintain the lowest ´expense to GWP (Gross Written Premium)µratio in industry of 6. Only private life insurance company to have posted profits (Rs 276 crores for the year ended March 31st.2 and share capital of Rs. IRDA has never banned any of SBI Life·s product. Solvency ratio of 2.) ` Growth at a rate of 40 % . ` ` ` ` .STRENGTHS (CONTD. 2010 ) and declared bonus.

Certifications of ISO 9001:2000. UNIT +3 etc. CRISIL etc. ISO 2700:2005 ( Information security ) AAA rating by ICRA. UNIT +. Profitable business growth demonstrated by all key distribution channels. UNIT +2. Superior Claims Settlement Process ( certified by ISO 9001:2000 ). One of the market leaders in Unit Linked Plans by offering products as Smart ULIP. ` ` ` ` .STRENGTHS (CONTD.) ` Globally topping the prestigious international MDR Table ( Million Dollar Round Table ² 30 Lacs collections by an agent in a year ) .

Regional Directors and Regional Channel Heads resolves customer complaints at local level. Through ´Mypolicyµ portal in www.co.sbilife.in.358 Crores. Fund Value and Premium Calendar. 6.) ` Asset Under Management jumped by 96% to Rs 28.551 Cr and New Business Annualised Premium Equivalent (APE) by 37 % to Rs. Restructured Customer Grievances Redressal Mechanism. ` ` . customers can view all policy details including Payment Summary.STRENGTHS (CONTD.

So.WEAKNESSES ` Less sales force than others ( LIC·s 3 field advisor : SBI·s 1 field advisor ) Low productivity of banc-assurance people. ` ` ` . People at top management/decision making level are from SBI. Hassle free online purchase of insurance policy is not available. typical PSU attitude in many aspects.

Over dependence on the banc-assurance channels . ` ` .) ` Is less aggressive in generating business compared to other private life insurance players. Less branch office compared to others .WEAKNESSES (CONTD.

It has an edge over LIC as far as service is concerned. it can grab more market share from LIC by giving it a tough competition.OPPORTUNITIES ` As only 12% of the 40 crores insurable population is insured. So.so there is an immense opportunity for SBI Life in future. ` ` ` . thus. a huge opportunity to reach out to more people. Not so much requirement on establishment of Brand (already have a good brand image of SBI). A huge revolutionary change (PARIBARTAN) in SBI is going to happen.

) ` Huge market potentiality in Rural markets which has been untapped till now. Lower premium ULIP policy (<10000) can attract lower income segment market. brokers etc.. ` ` ` .OPPORTUNITIES (CONTD. Higher market penetration by being more aggressive in banc-assurance channel of distribution. Huge opportunity to grab customers by being more active through other distribution channels as mall-assurance.

New tie-ups of competitors with innovative distribution channels. garnering new business worth Rs. ` ` ` ` . 26th May·10) New entrants in the pipeline of the life insurance business. 303 crores (source Economic Times.THREATS ` Huge competition from other pre-existing 22 players in the Life Insurance sector in India. The New Insurance guidelines from September ·10 onwards is really a big challenge for SBI Life·s business. the market giant already pipped SBI Life to regain top position. ICICI Prudential.

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