SWOT ANALYSIS

OF
SBI Life Insurance Co

Presented by....
Siva Rama Krishna, Sanchita, Sukamal, Smita, Soumya, Vivek
 SBI Life Insurance Co. Ltd at a Glance
 Joint venture between State bank of India and BNP Paribas Assurance.

 SBI is the largest bank in India and BNP Paribas Assurance is France’s
largest Insurance company.

 Investments: SBI - 76% and BNP Paribas – 24% .

 The Company started its operations in 29th March 2001.

 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).

 Leverages the State Bank Group Relationship as a platform for cross-

selling insurance products.

 As it sells its products through banc-assurance division of SBI, therefore

less need on spending money for establishing separate branch offices.

 Market share of 18.34% among private life insurers and a total market
share of 6.44%.

 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 % .

 IRDA has never banned any of SBI Life’s product.

 Only private life insurance company to have posted profits (Rs 276
crores for the year ended March 31st, 2010 ) and declared bonus.

 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.

 continues to maintain the lowest “expense to GWP (Gross Written

Premium)”ratio in industry of 6.5 %.
 STRENGTHS (contd.)
 Globally topping the prestigious international MDR Table ( Million
Dollar Round Table – 30 Lacs collections by an agent in a year ) .

 One of the market leaders in Unit Linked Plans by offering products as

Smart ULIP, UNIT +, UNIT +2, UNIT +3 etc.

 Profitable business growth demonstrated by all key distribution channels.

 Certifications of ISO 9001:2000, ISO 2700:2005 ( Information security )

AAA rating by ICRA, CRISIL etc.

 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.

 Restructured Customer Grievances Redressal Mechanism. Regional

Directors and Regional Channel Heads resolves customer complaints at
local level.

 Through “Mypolicy” portal in www.sbilife.co.in, customers can view all

policy details including Payment Summary, Fund Value and Premium
Calendar.
 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. So,

typical PSU attitude in many aspects.

 Hassle free online purchase of insurance policy is not available.

 WEAKNESSES (contd.)

 Is less aggressive in generating business compared to other

private life insurance players.

 Over dependence on the banc-assurance channels .

 Less branch office compared to others .

 OPPORTUNITIES

 As only 12% of the 40 crores insurable population is insured, thus, a huge

opportunity to reach out to more people.

 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.

 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,so

there is an immense opportunity for SBI Life in future.
 OPPORTUNITIES (contd.)

 Huge market potentiality in Rural markets which has been untapped till now.

 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, brokers etc..

 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.

 ICICI Prudential, the market giant already pipped SBI Life to regain top
position, garnering new business worth Rs. 303 crores (source Economic Times,
26th May’10)

 New entrants in the pipeline of the life insurance business.

 New tie-ups of competitors with innovative distribution channels.

 The New Insurance guidelines from September ’10 onwards is really a big
challenge for SBI Life’s business.