In today's dynamic and competitive business environment, survival, growth and profitability are the essence goals of all industries. Porter's Five Forces model is currently being adopted as the powerful management tool of choice by many organizations. The essence of this model is that it can help senior managers to make right decision and build and sustain competitive advantages in the organization level. This document presents the overview approach of Porter’s five forces framework across organizations. And critically evaluation of porter’s five forces model mainly focused on identifying the benefits and limitations of it and exploring some perceived issues or problems regarding implementation.

India’s rapid rate of economic growth over the past decade has been one of the more significant developments in the global economy. This growth has its roots in the introduction of economic liberalization in the early 1990s, which has allowed India to exploit its economic potential and raise the population’s standard of living.

Health insurance and pension systems are fundamental to protecting individuals against the hazards of life and India, as the second most populous nation in the world, offers huge potential for that type of cover. Furthermore, fire and liability insurance are essential for corporations to keep investment risks and infrastructure projects under control. Private insurance systems complement social security systems and add value by matching risk with price. Accurate risk pricing is one of the most powerful tools for setting the right incentives for the allocation of resources, a feature which is key to a fast developing country like India.

By nature of its business, insurance is closely related to saving and investing. Life insurance, funded pension systems and non-life insurance, will accumulate huge amounts of capital over time which can be invested productively in the economy. In developed countries (re)insurers often own more than 25% of the capital markets. The mutual dependence of insurance and capital markets can play a powerful role in channeling funds and investment expertise to support the development of the Indian economy.




To study the Porter’s Five Forces analysis of general insurance industry with special reference to L & T General Insurance limited, Chennai.


To trace out the threat of new entrants in insurance industry.

To study the bargaining power of buyers in insurance industry.

To measure the competitive rivalry within the insurance industry.


Larsen & Turbro Finance Limited is a 16 years old company, it was initially incorporated as a Non-Banking Financial Company. L&T Finance offers number of financial products and services for trade, industry and agriculture. The company focus segments are corporate products, construction products, commercial vehicles and Tractors. Recently L&T extended their business into insurance industry and they are interested to identify their opportunity to excel in the general insurance industry. Hence the researcher is interested to do “the porter’s five force analysis of insurance industry with special reference to L&T Insurance” focuses on

To identify the entry level problems To know the bargaining power of buyer To measure the competitive rivalry with in the industry

The study titled “The porters five force analysis of insurance companies in Chennai with special reference to L&T Insurance Ltd”. Outcome of this analysis may help the growth of their business in future. The study further help to manage the competitors in market focuses on the various factors which facilitates for starting an insurance company and threat which may block the entry of insurance companies. On analyzing all the five forces the researcher had sort out only the following three forces, which is applicable for insurance industry.

• • •

Entry level problems of insurance companies Bargaining power of buyers Competitive rivalry with in the industry



Insurance in India used to be tightly regulated and monopolised by state-run insurers. Following the move towards economic reform in the early 1990s, various plans to revamp the sector finally resulted in the passage of the Insurance Regulatory and Development Authority Act of 1999. Significantly, the insurance business was opened on two fronts. Firstly, domestic private-sector companies were permitted to enter both life and non-life insurance business. Secondly, foreign companies were allowed to participate, albeit with a cap on shareholding at 26%. With the introduction of the 1999 IRDA Act, the insurance sector joined a set of other economic sectors on the growth march.

Notwithstanding the rapid growth of the sector over the last decade, insurance in India remains at an early stage of development. At the end of 2003, the Indian insurance market was the 19th largest in the world, only slightly bigger than that of Denmark and comparable to that of Ireland. This was despite India being the second most populous country in the world as well as the 12th largest economy. Yet, there are strong arguments in favour of sustained rapid insurance business growth in the coming years, including India’s robust economic growth prospects and the nation’s high savings rates.

The dynamic growth of insurance buying is partly affected by the income elasticity of insurance demand. It has been shown that insurance penetration and per capita income have a strong non-linear relationship. Based on this relation and other considerations, it can be postulated that by 2014 the penetration of life insurance in India will increase to 4.4% and that of non-life insurance to 0.9%.


General Insurance in India has its roots in the establishment of Triton Insurance Company Ltd. The first general insurance company. This was probably a pre-cursor to modern day insurance. insurance has a deep-rooted history. Insurance in India has evolved over time heavily drawing from other countries. general insurance business was nationalized with effect from 1st January. the New India . In 1972 with the passing of the General Insurance Business Act. Yagnavalkya (Dharmasastra) and Kautilya (Arthasastra). 1973. 107 insurers were amalgamated and grouped into four companies. It finds mention in the writings of Man (Manusmrithi). History of insurance In India. followed by the Bombay Assurance Company in 1823. In 1907. namely National Insurance Company Ltd. It came to India as a legacy of British occupation. They insured the lives of Europeans living in India. a wing of the Insurance Association of India. epidemics and famine. floods. The General Insurance Council framed a code of conduct for ensuring fair conduct and sound business practices. and the Madras Equitable Life Insurance Society in 1829. The writings talk in terms of pooling of resources that could be re-distributed in times of calamities such as fire. In 1957 saw the formation of the General Insurance Council. The first company that sold policies to Indians with “fair value” was the Bombay Mutual Life Assurance Society starting in 1871.5 MODERN INSURANCE CAME WITH A BRITISH ACCENT Insurance in its modern form first arrived in India through a British company called the Oriental Life Insurance Company in 1818. This was the first company to transact all classes of general insurance business. England in particular. the Indian Mercantile Insurance Limited was set up. In 1968. Triton Insurance Company Limited. the Insurance Act was amended to regulate investments and set minimum solvency margins.. in the year 1850 in Calcutta by the British.. was established in 1850. Ancient Indian history has preserved the earliest traces of insurance in the form of marine trade loans and carriers’ contracts.

Parliament passed a bill de-linking the four subsidiaries from GIC in July. This millennium has seen insurance come a full circle in a journey extending to nearly 200 years. the Oriental Insurance Company Ltd and the United India Insurance Company Ltd. N. The IRDA opened up the market in August 2000 with the invitation for application for registrations. the Government set up a committee under the chairmanship of R. 2000. while ensuring the financial security of the insurance market. the subsidiaries of the General Insurance Corporation of India were restructured as independent companies and at the same time GIC was converted into a national re-insurer. The objective was to complement the reforms initiated in the financial sector. 2002. In December. the Insurance Regulatory and Development Authority was constituted as an autonomous body to regulate and develop the insurance industry. Foreign companies were allowed ownership of up to 26%. 2000. In 1993. The committee submitted its report in 1994 wherein. Following the recommendations of the Malhotra Committee report. to propose recommendations for reforms in the insurance sector..6 Assurance Company Ltd. in 1999. 1938 and has from 2000 onwards framed various regulations ranging from registration of companies for carrying on insurance business to protection of policyholders’ interests. The process of re-opening of the sector had begun in the early 1990s and the last decade and more has seen it been opened up substantially. Today there are 24 general insurance companies including the ECGC and Agriculture Insurance Corporation of India and 23 life insurance companies operating in the country. Malhotra. They stated that foreign companies are allowed to enter by floating Indian companies. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums. The Authority has the power to frame regulations under Section 114A of the Insurance Act. The IRDA was incorporated as a statutory body in April. among other things. it recommended that the private sector be permitted to enter the insurance industry. . former Governor of RBI. preferably a joint venture with Indian partners. The General Insurance Corporation of India was incorporated as a company in 1971 and it commence business on January 1st 1973.

pay less in settlements and defend their claim decisions in court. According to Price Waterhouse Coopers. insurance companies are doing what they can to deny claims. How Contributor updated: Factors in the economy. Together with banking services. • Solvency: . risk management. keeping costs low and retaining business in a competitive market are issues insurance companies face on a regular basis. In an effort to hold on to whatever funds they have. a battle that can take several years.term funds for infrastructure development at the same time strengthening the risk taking ability of the country. insurance companies have to deal with problems relating to collapses in hedge funds. according to the company's "Top Nine Insurance Industry Issues in 2009" publication. A well-developed and evolved insurance sector is a boon for economic development as it provides long. • Maintaining Funds in Hard Economic Times Price Waterhouse Coopers stated that instead of seeing collapsing assets. As a result. credit markets seized sales in life insurance policies dropped. asset management fees lowered and bond and mortgage insurers lost significant amounts of capital. according to a 2007 CNN article. Uncertainty regarding the economy along with changes in how people do business keep this industry on its toes as it strives to meet the demands of consumers and ensure long-term success. structured securities and equities.7 The insurance sector is a colossal one and is growing at a speedy rate of 15-20%. PROBLEMS WHICH ARE FACED BY INSURANCE COMPANIES By Flora Richards-Gustafson. insurance services add about 7% to the country’s GDP.

Market sensitive products that involve long. but is an issue they face in an effort gain capital. insurance companies face difficulties when it comes to creating improvement plans that reduce costs when the plans lack a basis in resources. electronics and IT. Financial Web states that as insurance company costs increase. cutting employee benefits reduces employee retention. Consequently. L&T has integrated its strengths in basic and detailed engineering. A strong customerfocus approach and constant quest for top-class quality have enabled L&T to attain and sustain leadership over 6 decades. such as training. Additionally. priorities. project management. their capital decreases. according to Price Waterhouse Coopers. procurement. EPC project business constitutes a critical part of the L&T’s engineering core. For example. fabrication and erection.and short-term investments for companies that sell life insurance are seeing low returns. more complex and the investment portfolios require more attention in order to manage them so returns and cash flow align with future liabilities.8 Companies that offered whole and term life insurance began offering "market-sensitive" products in an effort to expand product portfolios. which can make an insurance company less competitive. • Reducing Costs: Cost cutting efforts can have devastating consequences to insurance companies. Insurance companies. This gave policyholders competitive returns and gave insurance companies an edge in the financial service market. communication and performance management. insurance companies need to look at other avenues to ensure solvency and increase retention efforts. reserve calculations are subjective. construction . This helps them ensure a cut in one area does not increase the cost in another. process technology. as they determine which costs to cut. or cuts in staff can lead to long turn-around times. must look at forces behind costs. COMPANY PROFILE Larsen & Toubro Limited (L&T) is India’s largest engineering and construction conglomerate with additional interests in electrical. dependencies and the integration of the human element. As a result.

viz. with a global spread of over 30 offices and joint ventures with world leaders. They arrived on Indian shores as representatives of the Danish engineering firm F L Smith & Co in connection with the merger of cement companies that later grouped into the Associated Cement Companies. who built a world-class organization that is professionally managed. to offer single point responsibility under stringent delivery schedules. L&T’s international presence is on the rise. .9 and commissioning. large scale turnkey projects to maintain its leadership position. L&T operations are supplemented by a comprehensive distribution network and nationwide ramifications for customer service and delight. It was the business of cement that brought the young Mr. Its large technology base and pool of experienced personnel enable it to offer integrated services in world markets.K. Strategic alliances with world leaders enable L&T to access technical know-how and execute process intensive. S. and a managed and a leader in India’s engineering and construction industry. Henning Holck-Larsen and Mr. L&T enjoys a brand image in India and several countries offshore. HISTORY: Larsen & Toubro Limited is the biggest legacy of two Danish Engineers. With factories and offices located all over the country and abroad. Toubro into India.. The Company’s businesses have been classified into 6 Operating Division.       Engineering Construction & Contracts Division (ECCD) Engineering & Construction Projects Division (E&C-Projects) Heavy Engineering Division (HED) Electrical & Electronics Division (EED) Machinery & Industrial Products Division (MIPD) and Technology Services Division.

which was converted into a limited company on February 7. Holck-Larsen and Mr. ECC was conceived as Engineering Construction Corporation Limited in April 1944 and was incorporated as wholly owned subsidiary of Larsen & Toubro Limited. Mr. . entrepreneurial and empowered team constantly Creating value and attaining global benchmarks. this has metamorphosed into one of India’s biggest success stories. Today. Toubro laid the foundation for ECC. L&T shall be an innovative. L&T’s founders Mr. 1946. Holck – Larsen and Mr. L&T shall foster a culture of caring. The company has grown from humble origins to a large conglomerate spanning engineering and construction. stakeholders and society. VISION: L&T shall be a professionally-managed Indian multinational. Toubro founded the partnership firm of L&T in 1938. trust and continuous learning while meeting expectations of employees. It has today emerged as India’s leading construction organization. committed to total customer satisfaction and enhancing shareholder value.10 Together.

11 L&T INSURANCE OVER VIEW L&T General Insurance Company Limited (L&T Insurance) is a wholly owned subsidiary of Larsen & Toubro Limited . .one of the world's top 50 most reputed companies in the June 2009 issue of Forbes-Reputation Institute’s “World’s Most Reputable Companies” survey.

We seek to create a single technological platform that integrates all the key functions to provide seamless services to our customers through any interface of their choice. It was ranked as 14th by the Economic Times in their survey of the Top 500 Companies in India. In this survey. engineering and construction group with operations spread across the globe. Another feather in its cap was added when L&T was ranked 47th in the world in the June 2009 issue of Forbes-Reputation Institute’s “World’s Most Reputable Companies” survey. Having established its foothold in engineering and construction. L&T was the only engineering and construction company in the world to have made it to the top 200. L&T Insurance will be a state-of-the-art technology-driven company that delivers world-class services. backed by a prudent underwriting approach. We bring to the table the credibility. it is our people who will help us achieve our vision.12 COMPANY VISION Our vision is to be an insurance company distinct in character. L&T forayed into the financial . We will cater to all lines of general and health insurance throughout the country.8 billion technology. Our Heritage Larsen & Toubro Ltd is a USD 9. We are committed and equipped to offer the same levels of service in the insurance space that our parent (Larsen & Toubro Limited) is renowned for. industrial products and information technology. Finally. electrical and electronics. calibre and capability. L&T Insurance comprises of an array of top notch Insurance Professionals who have come together to combine their experience and expertise to create an entity which will lead by innovation. financial strength and expertise. backed by a world class brand and seven decades of unmatched leadership of the L&T Group. in its other fields of business.

This discipline and its importance to the company have been ingrained in all our employees.  satisfaction has always been their ultimate goal and they remain committed to constantly delivering customer needs with their innovative products and services. Small and Medium Enterprises. and a special focus on Rural and Micro Insurance. It has been L&T’s vision to become a ‘wholesome’ player in this area of business. L&T’s ‘Financial Services’ initiative will cater to an entire spectrum of customers. Our Values In order to become an insurer of choice. in the competitive market conditions prevailing today. Automobile. Health. Customer in all their endeavors. they believe in building their business on • • • Integrity – by conducting our business with utmost fairness and honesty Transparency – by maintaining clean records accessible to all our customers and stakeholders Professionalism . Financial Services has been identified as a strategically important business for L&T Group.  Following a disciplined underwriting approach. Corporate with business lines that include Property & Casualty. With an entire range of products and service offerings.through building strong relationships based on tolerance.  Focusing on different customer segments. They endeavor to provide a complete range of general insurance products and specialized services for various customer segments across Individuals. Philosophy  Creating a world-class insurance company by constantly maintaining exalted quality standards Providing sustained innovation by working towards ever-evolving solutions. and their various financial needs. They work hard to constantly reinforce customer trust in us.by ensuring that the growth of our society and nation parallels cooperation • the growth of the business . The launch of the General Insurance business is a major step in this direction.13 services space. trust and mutual Active social responsibility .

thereby ensuring optimal usage of your financial resources CORPORATE GOVERNANCE Governance is a key component of corporate leadership. GOVERNANCE STRUCTURE To run a transparent and accountable business requires effective upholding of the principles that they stand for. the highest decision-making body within the organization. FOUR TIER GOVERNANCE STRUCTURE . increased public confidence and a well performing management in place. fostering a healthy growth.14 • High customer focus – by anticipating and proactively responding to all your priorities and Providing mutual value – by constantly working towards building a relationship based on needs • mutual value and respect. Highest priority is given to visible accountability across financial and non-financial segments – without making any exceptions. This responsibility is vested in company experienced and erudite team of executive and non-executive directors. the only antidote is transparency. At L&T. With a ‘trust crisis’ emerging across sectors. They consistently adopt innovative approaches for leveraging resources. converting opportunities into achievements and development of human resources to take the company forward. every action is filtered through integrity and fairness. Our four-tier governance structure ensures greater management accountability and credibility.

15 Board of directors .

16 TYPES OF INSURANCE Health Insurance .

Every human being is exposed to various health hazards. which could arise from various factors viz. Medical emergency can strike anyone without pre-warning. It is a contract between you and the insurance company.17 A health insurance policy will provide a cover to you and your family against sudden medical contingency or bodily injury. The reasons why health insurance is a must: • • • • • Medicines have become quite expensive Private hospitals are too expensive Diagnostic charges are beyond common man’s reach Specialists come at a price People opt for Travel Insurance which covers them against medical expenses they may incur while travelling abroad (outside country of residence) Health risk is a personal risk. • • • • • • Physical condition Accident related Occupational related Environment related Life style related Travel related Motor Insurance Motor insurance protects you against damage caused to your vehicle or third party if you have an accident. You agree to .

Fire. you may be exposed to significant financial liability. and baggage and so on.18 pay the premium and the insurance company agrees to pay your losses as defined in your policy. permanent partial disability and temporary total disability. which one might face like loss of passport. Home Insurance Your most important asset is your home. Travel Insurance Travel insurance policies have been intended to insure you against certain events when you take a holiday or trip to make your trip stress-free. liability and medical coverage Property coverage pays for damage to or theft of your car. There might also be other situations. permanent total disability. Liability coverage pays for your legal responsibility to others for bodily injury or property damage. earthquakes. Motor insurance provides property. With natural disasters and man-made accidents not just a possibility. Personal Accident is an insurance cover which is recommended to you and your family in the event of accidental death. but an eventuality. many individuals choose to purchase insurance coverage to help family members and loved ones deal with the associated financial instability. but also to cover disablement. flight delay. and floods are all too often a part of our life today. leading to loss of earning capacity. it is essential that you secure your home from natural and man-made disasters. Before going on a trip you need to address all your travel worries. Home insurance provides compensation for loss of or damage to a home and it’s contents. Medical treatment abroad can be costly and one never knows when one would require it. Personal accident policies cover you for four contingencies in the event of an accident: death. Personal Accident Insurance Accidents occur unexpectedly. Without appropriate travel insurance. Home insurance policy makes sure you have a peace of mind by protecting the structure and/or the contents of your home. .

Even if you already have permanent health insurance. Engineering Engineering Insurance provides comprehensive insurance solutions for Construction and Erection projects as well as Operational insurance covers like Contractor’s Plant and Machinery. Commercial Insurance Large corporations or even Smaller Companies have varied needs for insurance. liabilities. Group Health Comprehensive health insurance solutions. designed for the employees of your company and their family members. Machinery Breakdown Insurance. vehicles. assets. You can also insure Consequential loss of profits following damage to your assets due to insured perils. construction/engineering/marine cargo/logistics activity & employees against sudden and unforeseen loss or damage. It covers your employees and their family members from hospital and medical expenditure that arise out of an illness or accident. you should also have Personal Accident insurance to provide cover in case of accidents. Fire (property) Fire Insurance is designed to cover your business assets against sudden and accidental loss or damage due to wide range of perils. Most insurance companies offer a comprehensive set of products designed to protect business. Family members include spouse and two dependent children.19 Personal Accident Insurance is inexpensive and it is recommended that you select the highest level of cover available. Electronic Equipments. .

Medical expenses could pile up. TECHNOLOGY In this shrinking. It doesn’t just cover your employees. Fidelity Guarantee & Plate glass and Neon Sign Board. time is money. dependent children and parents if they choose to cover. they have envisaged a state-of-the-art technological platform that integrates all the key business functions to build a . covering the legal liability of your company and your directors towards third parties and employees. As a step towards this. anywhere. They truly understand this and this is what has prompted us to build a state-of-the art technology-driven company that delivers world-class services to all our stakeholders. Burglary. Group Personal Accident Accidents can happen to anyone anytime. Cover can be arranged on a 24 hours basis or only to cover accidents occurring during the period of employment. Group Personal Accident Insurance provides cover to your employees against accidental bodily injury. adding to the financial burden of your employee. fast paced world. death or disablement.20 Marine Marine insurance protects your assets against loss or damage while in transit by Rail/Road/Air/Sea. Liability Provides complete range of business and commercial insurance liability policies. it also covers their dependants which include their spouse. Casualty Casualty insurances encompass a wide range of insurances like Money.

claims management.. rivalry among competitors. . etc. This innovative technology platform will provide the following features in a phased manner • Anytime. all in a single window • Risk Management Systems that deploys different techniques to understand. Porter has made immense contribution in the development of the ideas of industry and competitor analysis and their relevance to the formulation of competitive strategies. A single window will allow you to purchase new policies. using our IT platform to Single View of customer account which includes customer contact details. Mobile and Capacity to help customers generate ‘Quick quotes’ and issue on-the-spot policies for select Insurance website • Telephone • products • • • Management of Business Process on ‘real-time’ basis They having an Integrated Claims System for Motor & other portfolios Ability to connect to various health care Networks like Hospitals etc. renew your policy. A model has been proposed consisting of five competitive forces – threat of new entrants. family members and give customer seamless automated services • their details.21 deeper customer connect and create uniform brand experience. manage and most importantly mitigate ‘Risk’ REVIEW OF LITERATURE Michael E. manage your policies and view the status of claims. Anywhere customers can access their account through our 24X7 support on L&T Company system has the capability to contact customer through Internet. He advocates that a structural analysis of industries be made so that a firm is in a better position to identify its strengths and weaknesses.

The concept of entry barriers implies that there are substantial costs involved in entering into a new industry. entry barriers are significant demotivators for new entrants. new entrants may case comparatively lesser sales volume and revenue and lower the returns for all the firms in the industry. The chance that new entrants will enter into an industry depends on two factors: the entry barriers to an industry and the expected retaliation from existing firms. The existing firms have either to share a growing market pie with a larger number of competitors or part with some of their own market share to the new entrants. Such new entrants augment the existing production capacity and often possess a desire to make large investments and secure substantial market share. Either way. 200 crores . In the case of a re-insurance company the minimum paid-up equity capital will have to be Rs. the less likely are the new entrants to enter that industry. The higher the entry barriers in an industry. higher entry barriers serve to keep out potential entrants into an industry. These new entrants are firms that are interested in investing in the industry to share the growth prospects. bargaining power of buyers and threat of substitute products – that determine the intensity of industry competition and profitability. So. Of these. 100 crores. • Capital requirements being very high may prevent new entrants from making CAPITAL REQUIREMENTS OF NEW INSURANCE COMPANIES Any new life insurance company or non-life insurance company will not be registered unless the company has a paid-up equity capital of a minimum Rs.22 bargaining power of suppliers. THREAT OF NEW ENTRANTS Any industry that is perceived as being profitable tends to attract new entrants.

However. the equity holding of the foreign company in the Indian insurance venture has been reduced from the maximum allowable 26 per cent. the quantum of paid-up equity share capital held by other foreign investors. On account of the above guidelines. Sec. 7 of the amended Insurance Act. other than the foreign promoters of the applicant and their subsidiaries and nominees. for purposes of calculation referred to above. overseas corporate bodies and multinational agencies in the applicant company. 1938). The calculation of the holding of equity shares by a foreign company either by itself or through its subsidiary companies or nominees in the applicant company. the deposit to be made under Sec. account need not be taken of the holdings of equity in an Indian promoter company held by foreign institutional investors. deposit with the Reserve Bank of India . Further. 7 and any preliminary expenses incurred in the formation and registration of the company shall be excluded. 6 of the Insurance Act. 1938 provides that every insurer shall. and Indian mutual funds. in the case of the HDFC.Standard Life insurance venture. and the quantum represented by that proportion of the paid-up share capital to the total issued equity share capital of an Indian promoter company held or controlled by the category of persons mentioned in (i) and (ii) above. in respect of the insurance business carried out by him in India. This also means that any dilution of norms would also have to be passed by Parliament. 6 provides that in determining the paid-up capital requirement. non-resident Indians. Equity capital held by a foreign company The IRDA has issued detailed guidelines regarding the manner in which the quantum of foreign investment will be calculated.23 (Sec. This makes the insurance industry different from other industries where foreign direct investment norms can be changed by administrative fiat. The IRDA had to issue such strict guidelines as the upper cap on foreign equity limit in the new insurance companies was insisted upon by Parliament. shall be the aggregate of the quantum of paid-up equity share capital held by the foreign company either by itself or through its subsidiary companies or nominees in the applicant company. Deposits Sec.

of his total gross premium written in India. No risk to be assumed unless premium is received in advance. 64V provides the details and valuation of liabilities (general insurance). in any financial year commencing March 31. solvency margin. Sufficiency of assets The new IRDA Act (Sec. • Switching costs from the existing products or services to a new one may discourage customers from making new commitments owing to the costs incurred in buying new ancillary equipment. a sum equivalent to three per cent. 30 per cent of net incurred claims Rs. 10 crores. net of re. not exceeding Rs. a sum equivalent to Rs. Non-life Company: The required solvency margin shall be the highest of the following amounts. . the following provisions are required to be made in addition to those listed in the Section: fire and miscellaneous business 50 per cent. Sec. of his total gross premium written in India in any financial year commencing March 31. The IRDA has to specify the percentages. and marine hull business 100 per cent of the premium. during the preceding 12 months. retraining employees or establishing a new network of relationship.24 (RBI) either in cash or in approved securities estimated at the market value of the securities on the day of deposit: * In the case of life insurance business. The minimum solvency margin shall be Rs. on a simple level the following solvency margins have to be maintained: Life Company: The minimum amount of the value of assets over liabilities will be a sum of a percentage of mathematical reserves and a percentage of the sum at risk. 2000. Twenty per cent of net premium income. 10 crores. 50 crores. 2000. 50 crores. 64VA of the Insurance Act) has introduced detailed provisions regarding the levels of solvency margins to be maintained by insurance companies. assets and liabilities how to be valued. marine cargo business 50 per cent. 20 crores. *In the case of reserves for unexpired risks for general insurance business. * In the case of re-insurance business.insurances. a sum equivalent to one per cent. * In the case of general insurance business. However. not exceeding Rs.

. • firms to an industry. the expected retaliation to the new entrants from the existing firms may be a potential threat to entry. Any potential entrant to an industry would have to predict the likely moves that the existing firms could make. one player loses at the expense of the other.25 • Product differentiation by existing firms based on perceived distinctiveness by the customers based on effective advertising. The situation in an industry keeps changing with the actions and reactions of the constituent firms. RIVALRY AMONG COMPETITORS Competitor is a game in which normally. This has implications for existing firms as well as those firms contemplating entry into the industry. For instance. The popular strategy for doing so is finding market niches not served by existing firms and to gradually build up a presence in the industry. • Besides the entry barriers. The extent of the rivalry among competitors in an industry affects the competition within the industry. When the rivalry is weak. an existing firm with a large stake in the industry may lower its price to create a difficult situation for the new entrant. reputation as a service provider. In this manner. new firms do enter industries if they find them to be promising. brand loyalty of customers towards existing firms or some such other factor. there is likely to be lesser competition. A move on the part of a player may cause other players to make countermoves or initiate efforts to protect themselves from the danger posed by the initial move. Despite the formidable hurdles posed by existing firms. • Access to distribution channel can be monopolized by the existing firms on the basis Government policies through licensing and other means can prevent the entry of new Existing loyalty to major brands of their long–terms relationship with the distributors. Or an existing firm with substantial resources may attempt to alter the basis of competition so that the new entrant is discouraged from making a foray. when such rivalry is high. firms within an industry are mutually dependent. The desire to be market leader or to corner a larger market share leads to rivalry among competitors. the level of competition is higher.

there might be cutthroat competition leading to underpricing or severely fought competitive battles on the basis of other factors such as delivery.26 The dimensions of rivalry among competitors are several. a company in the same industry or a similar industry which offers a similar product or service. . or different organizational culture. A consolidated structure consists of a few large companies (an oligopolistic market) or of just one large firm (a monopoly). Competition is intense and the industry faces booms and busts. Competitive actions of the competitors are under close watch by the others as they affect the distribution of market share. A fragmented structure means that there are a large number of small or medium – sized companies. Different types of competitive structures have different implications for the existing firms and for the new entrants. Fast-food restaurants McDonald's and Burger King are competitors. The intensity of competition may range from benign tolerance to fierce rivalry. one of them in a position to dominate the industry. advertising or after – sale service. the competitors may adopt a policy of ‘live and let live’. The presence of one or more competitors can reduce the prices of goods and services as the companies attempt to gain a larger market share. leading to products becoming commodities. An industry with greater diversity poses a higher potential challenge to existing firms or new entrants for devising competitive strategies. as are Coca-Cola & Pepsi. Diversity among competitors means that different firms in an industry have different ideas on the basis of which to compete. In some industries. different set of goals to achieve. Structures could either be fragmented or consolidated. and Wal-Mart & Target. In business. This structure is characterized by low entry barriers and less or no differentiation. Some of the major ones are described below:  Competitive structure It refers to the number of competitors. leading to frequent changing of the structure. their size and diversity.  Competitors Any person or entity which is a rival against another. while in others. Competition also requires companies to become more efficient in order to reduce costs. Such a structure has a closely knit group of companies whose actions and reactions are matched: the actions of one lead to reactions from others.

as described in section 8. An industry in the mature stage today might be a declining industry tomorrow. the general insurance industry recorded 22. it is important for firms to align their business strategies to the changing conditions in the industry environment. The public sector players posted 21. According to the IRDA's Summary Reports of Motor Data of Public and Private Sector Insurers .31 billion was collected. The nature of industry environment varies across industries and also with time. The competitive equations change. Here again. The state-run insurers fared better than their private counterparts.25 million in the same period last year. Entry barriers erected today may fall by the wayside as soon as some new development takes place. with New India Insurance collecting the maximum premium of US$ 916. Such is the dynamic nature of strategic management where anything that a firm might do today does .19 per cent y-o-y increase in gross premium. There might be embryonic or introductory industries.31 billion in the same period last year. At the same time. Each of these industries would require a different approach to the formulation of business strategies. you must have noticed that business strategies are critically dependent on the industry environment.09 per cent y-o-y growth in gross premium during April–October 2010 over the corresponding period last year.2009-10. It is also important to note that industries respond to time and follow a life cycle. so do the demand conditions.29 billion during April–October 2010 compared with US$ 4. growing by 19. mature or stable industries and declining or sunset industries.76 per cent year-on-year (y-o-y) growth in gross premium underwritten during April–October 2010.77 million during April-October 2010. growth or sunrise industries.27  Industry growth rate General Insurance According to data released by IRDA. nearly 28. compared to US$ 770. private players recorded a 25.  Diversity of competitors.4 million policies were issued and a total premium of US$ 2. As we described these factors constituting the force of competitive rivalry within an industry.5. The industry collected gross premium of US$ 5.04 per cent.

The bargaining power of suppliers constitutes their ability. demand a higher quality or better service or to seek more value for their purchases in any way. to force an increase in the price of products or services or make the buyers accept a lower quality of product or level of service. THREAT OF SUBSTITUTE PRODUCTS . unless there is a willingness to respond to environmental conditions as they arise in between. Product differentiation Product innovation BARGAINING POWER OF SUPPLIERS Like the bargaining power of buyers. BARGAINING POWER OF BUYERS The bargaining power of buyers constitutes the ability of the buyers. A low buyer bargaining power enables a firm to pass on the cost escalation to buyers or to make the buyers accept a lower quality of product and service at a higher price. A high supplier bargaining power constitutes a positive feature for the existing firms or new entrants of an industry. individually or collectively. A high buyer bargaining power constitutes a negative feature for existing firms or new entrants of an industry. suppliers to have a level of bargaining power.28 not guarantee success tomorrow. A low supplier bargaining power prevents a firm from passing on its cost increases to the buyers or to make the buyers accept a lower quality of product and service at a higher price. to force a reduction in prices of products or services. When the switching costs of buyers from one supplier to the other is low. The bargaining power of buyers is high under these conditions:     When the few buyers place large orders individually. individually or collectively.

The purpose of an industry analysis. It follows that. it does not offer long – term growth opportunities) then the strategic alternatives that lie within the industry should not be considered. For industries where close substitutes are available. It also means that alternatives may have to be sought outside the industry. its position within the industry. if the industry in not. calling for diversification moves.. the level of price of products chargeable is restricted by the price of the substitute available. We referred to the example to tea and coffee as substitutable products in the beginning of this section. in the context of strategic choice. fax and courier services and electrical gadgets like bulbs and tube lights. In other words. obviously. Using the five forces model of industry competition. The availability of close substitutes constitutes a negative competitive force in an industry. the areas where strategic changes may yield the maximum profits and the significant opportunities and threats. firms have to formulate their business strategies keeping in view the intensity of the competitive force arising out of the presence or absence of the threat of substitutes. firms in an industry having no close substitutes can charge a higher price and earn higher returns. but satisfy the same set of customer needs. The platform for substitutability in every case is the serving of the customer need. a firm can analyze its critical strengths and weaknesses. is to determine the industry attractiveness and to understand the structure and dynamics of the industry with a view to finding out the continued relevance to strategic alternatives that are there before a firm. USE OF THE INFORMATION FROM FIVE FORCES ANALYSIS: .29 Substitute products or services are those that apparently are different.e. Thus. for instance. We could also include aerated drinks as another form of substitute products and services could be alternative modes of transportation. postal. those industries which have no close substitutes are more attractive than those that have one or more of such substitutes. or is no longer sufficiently attractive (i.

Dynamical Analysis: In combination with a PESTLE Analysis. The result could be a new strategic direction. Technological. Economical. The model can be applied to particular companies. It provides insights on profitability. Analysis of Options: With the knowledge about intensity and power of competitive forces. Therefore. industries or regions. Following. Thus. the model can be used to compare the impact of competitive forces on the own organization with their impact on competitors. a new positioning. This may influence the structure of the whole industry. Expected Political. organizations can develop options to influence them in a way that improves their own competitive position.g. Legal and Environmental changes can influence the five competitive forces and thus have impact on industry structures. it is necessary to determine the scope of the market to be analyzed in a first step. it supports decisions about entry to or exit from and industry or a market segment. market segments. Social. which reveals drivers for change in an industry. all relevant forces for this market . differentiation for competitive products of strategic partnerships Porter’s model of Five Competitive Forces allows a structured and systematic analysis of market structure and competitive situation. Competitors may have different options to react to changes in competitive forces from their different resources and competence’s. Five Forces Analysis can reveal insights about the potential future attractiveness of the industry. Moreover. e.30 Five Force’s Analysis can provide valuable information for three aspects of corporate planning: Statistical Analysis: The Five Forces Analysis allows determining the attractiveness of an industry.

M. Coincidently. A company that is highly leveraged might not be able to meet financial obligations when a large catastrophic event occurs. Everyday insurers are taking in premiums and paying out claims to policyholders. The Five Forces Model is based on microeconomics. managers can search for options to influence these forces in their organization’s interest. these are the same ones that the A. it is not necessary to analyzer all elements of all competitive forces with the same depth. Analyst Insight There are three major factors that we must consider when analyzing an insurance company. The objective is to reduce the power of competitive forces. It takes into account supply and demand. oligopoly or perfect competition. complementary products and substitutes. Best taken into account. Although industry-specific business models will limit options. Influencing the Power of Five Forces After the analysis of current and potential future state of the five competitive forces. Companies should strike a balance between high returns while keeping leverage intact. The following three things act to increase leverage: *Writing more insurance policies * Dependence on reinsurance * Use of debt . the own strategy can change the impact of competitive forces on the organization. and market structures like monopoly. The ability to meet their obligations toward these policy holders is extremely important. the relationship between volume of production and cost of production.31 are identified and analyzed Hence. Leverage The first things you want to check when considering an insurance company are the quality and strength of the balance sheet.

The one thing to remember is that higher premium collections do not equate to higher profits. Underwriting income is just that any revenue derived from issuing insurance policies. Ideally. It tests whether a firm has enough short-term assets (without selling inventory) to cover its immediate liabilities. Too many high and medium risk bonds could lead to instability. but be careful. there are two components of profits that we must consider: premium/underwriting income and investment income. By averaging the premium's growth rates of several past years. The second area of profitability that you need to include in your analysis is investment income. equities or money market securities. you can determine the growth trends. Also take a close look at cash flow. A majority of the assets should be invested in low-risk bonds. looking for only the highest quality insurance opportunities. profitability is a key determinant for deciding whether to invest. a greater proportion of an insurer's income comes from investments. Conversely. Lower numbers of claims (via low risk clients) contribute more to the bottom line. take a look at the company's asset allocation strategy (usually mentioned in the notes of the financial statements). Other things to keep an eye on are the investment grades of the company's bond portfolio. a company whose premium income is growing at a slower rate might be too picky. Growing premium income is a "catch 22" for insurance companies. To evaluate this area. Profitability As with any company. For an insurance company.32 Reinsurance allows a company to pass off some of the risk exposure to other insurers (usually a good thing). you want the growth rate to exceed the industry average. An insurer should almost always have a positive cash flow. Some insurers invest a substantial portion of their assets in real . Too much dependence on reinsurance means that the company is not keeping a fair portion of responsibility for each premium dollar. As we mentioned earlier. You aren't likely to find any secrets in this area. but you want to be sure that this higher growth does not come at the expense of accepting higher-risk clients. Liquidity The first test of an insurer's ability to meet financial obligations is the acid test.

Meaning of Research Research in common parlance refers to a search for knowledge. . take a look at what type of property it is and where it is located.  Systematic and organized effort to investigate a scientific problem. Idah RESEARCH METHODOLOGY The project study mainly focuses on analysis of General Insurance companies through porter’s five forces analysis. If this is so. In fact. One can also define research as a scientific and systematic search for pertinent information on a specific topic.  Gather information. Research is an academic activity and as such the term should be used in a technical sense.33 estate.  Identify the problem. A building in New York City is much more liquid than one in Boise. research is an art of scientific investigation.

Data collection Method  Nature of Data The data collected is secondary in nature.34  Analyze the data. which only identify for secondary data. According to Redman and Mory define research as a “systematized effort to gain new knowledge. The function of researcher is to ensure that required the data collected or accurate and economically. . Analytical research The researcher has to use information already available and analyze those details to make a serious assessment of the Receivable Management. Research Design is purely and simply the framework or plan for a study that guides the collection and analysis of data. This is due to the nature of analysis. Research Method The research is analytical in nature. Definition of Research The advanced learner’s dictionary of current English lays down the meaning of research as “a careful investigation or inquiry especially through search for new facts in any branch of knowledge”.  Take corrective action and solve the problem.” Research Design Research is an organized activity focused on specific objective with the support of data collection involving tools for analysis deriving logically sound inferences.

It used for the analysis and for preparing reports. Balance Sheet. we discuss two commonly-used methods of measuring industry concentration: The Concentration Ratio and . and government agencies. Tools and Techniques for Analysis: Various tools and techniques are used for the analysis are as follows. Secondary Data The secondary data are collected mainly from Annual Reports. The data for the analysis are collected and collected from the printed reports of L&T Insurance Limited like annual reports. Industry Concentration The concentration of firms in an industry is of interest to economists.35  Source of Data The source of data is the various year’s balance sheet. The records maintained by the company where referred to get the required information. Income and Expenditure and other broachers of the company. profit and loss account and statements provided by the L&T Insurance Limited. official files from IRDA records and other available related material from related sites. Period of study: The period of study will be carried out from last four financial years. Here. business strategists.

where m is a specified number of firms. but sometimes a larger or smaller number. The concentration ratio can be expressed as: CR m = s1 + s2 + s3 + . if the CR1 measure is more than about 90. The concentration ratio often is expressed as CRm. Herfindahl-Hirschman Index (HHI) The Herfindahl-Hirschman Index provides a more complete picture of industry concentration than does the concentration ratio... and these market shares are squared in the calculation to place more weight on the larger firms. for example. this value would indicate an extremely competitive industry since the four largest firms would not have any significant market share. but none owning a very large chunk of the market. The HHI uses the market shares of all the firms in the industry. often 4. If there are n firms in the industry. then the industry is considered to be very competitive. CR4. the HHI can be expressed as: HHI = s12 + s22 + s32 + .. Concentration Ratio (CR) The concentration ratio is the percentage of market share owned by the largest m firms in an industry. In general. that one firm that controls more than 90% of the market is effectively a monopoly. with a number of other firms competing.. + sn2 .... On the other extreme..Hirschman Index. + sm where si = market share of the ith firm.36 The Herfindahl .. If the CR4 were close to zero. if the CR4 measure is less than about 40 (indicating that the four largest firms own less than 40% of the market)..

indicating nearly perfect competition. classification and tabulation of the collected data so that they are easy to analysis. On the other extreme. Interpretation refers to the task of drawing inference from the collected facts after an analytical and/or experimental study. Technically speaking. The analysis was restricted to three excluding suppliers and substitute product because there is no suppliers for insurance and no substitutes for GI. each of which having nearly zero market share. processing implies editing. if there were a very large number of firms competing. The Herfindahl-Hirschman Index is calculated by taking the sum of the squares of the market shares of every firm in the industry.000 -.the maximum possible value of the Herfindahl-Hirschman Index.   Fish bone tool Trend analysis ANALYSIS AND INTERPRETATION The data after collection has to be processed and analyzed in accordance with the outline laid down for the purpose at the time of developing the research plan. then the HHI would be close to zero. that firm would have 100% market share and the HHI would be equal to 10. coding.37 where si is the market share of the ith firm. It has been done with the assistance of the secondary sources such as four years gross premium data collected from IRDA. the HHI will change if there is a shift in market share among the larger firms. For example. . if there were only one firm in the industry. Tools such as trend analysis and fish bone diagram are used to have a clear analysis. Unlike the concentration ratio.

49 193.43 153.38 It is a device through which the factors that seems to explain what has been observed by researcher in the course of study can be better understood and it also provides a theoretical conception which serve as a guide for future research.76 403.1 .irda. No 1 2 3 4 5 6 Companies Royal sundaram TATA-AIG $ Reliance IFFCO TOKIO ICICI Lombard Bajaj Allianz Years 2007 99.1 Fire Insurance Gross Premium hold by top six Private General Insurance companies (Rupees in Crores) S.25 287.65 133.8 438.2 126.in CHART NO: 4.72 75.25 146.gov.59 105.48 234.16 294.81 234.19 176.53 2010 37.19 2008 69.05 381.53 2009 33. TABLE NO: 4.76 244.72 160.18 Source: www.81 176.25 127.08 130.

Gross premium decreased up to 39%. . Gross premium Increased up to 18%. But. in 2010 ICICI Lombard had lesser gross premium than 2007. 2010 TATA-AIG had good gross premium than 2007. past four years ICICI Lombard having high gross premium compared with others competitors. All the six companies having good gross premium in the year 2007 compared to 2010.39 INTERPRETATION: From the above table it is clear that. all six companies gross premium were started to decrease from 2008.

31 24.41 69.irda.41 2009 15.44 71.96 155.43 57.25 72.07 53.83 118.45 224.16 33.gov. No 1 2 3 4 5 Company Royal sundaram TATA-AIG $ Reliance IFFCO TOKIO ICICI Lombard Years 2007 18.49 114.40 TABLE NO: 4.92 42.42 125.32 6 Bajaj Allianz Source: www.55 76.2 .86 37.73 86.99 2008 18.2 Marine Insurance Gross Premium hold by top six Private General Insurance companies (Rupees in Crores) S.92 129.45 101.27 97.13 2010 18.49 102.in CHART NO: 4.

but difference was 56. In the year 2007 ICICI Lombard and IFFCO TOKIO had good premium range. ICICI Lombard had high premium than IFFCO TOKIO With some 16. past four years ICICI Lombard having high gross premium compared with others competitors. . In 2008 ICICI Lombard and TATA-AIG had good premium compare to other competitors.75% difference. ICICI Lombard had high premium than IFFCO TOKIO With some 13.41 INTERPRETATION: From the above table it is clear that. In 2009 ICICI Lombard and IFFCO TOKIO had good premium range. In 2010 ICICI Lombard and TATA-AIG had good premium compare to other competitors.39% between them.99% between them. but difference was 8.29% difference.

67 86.22 53.88 67.24 56.85 71.43 2008 17.in CHART NO: 4.81 Source: www. No 1 2 3 4 5 6 Company Royal sundaram TATA-AIG $ Reliance IFFCO TOKIO ICICI Lombard Bajaj Allianz Years 2007 17.45 52.65 65.gov.7 53.49 2009 15.42 TABLE NO: 4.3 .23 60.92 31.16 18.99 2010 18.18 47.14 80.27 67.64 56.86 22.3 Marine Cargo Insurance Gross Premium hold by top six Private General Insurance Companies (Rupees in Crores) S.31 16.irda.87 97.42 62.49 114.

26%. .31% & in 2010 was 29. In 2007 premium difference was 15. In the years 2007 and 2008 TATA-AIG and BAJAJ ALLIANZ had good competition in premium.07% In the years 2009 & 2010 TATA-AIG & ICICI Lombard had good premium. past four years TATA-AIG having high gross premium compared with others competitors.43 INTERPRETATION: From the above table it is clear that. Premium difference between these companies in 2009 was 28.73%. in 2008 31.

29 103.92 2009 27.54 89.58 61.44 TABLE NO: 4.gov.in CHART NO: 4. No Company name Years 2007 40.37 31.29 93.69 2010 27.4 Engineering Insurance Gross Premium hold by Top six Private General Insurance Companies (Rupees in Crores) S.72 72.36 72.66 125.63 116.irda.63 44.51 32.91 177.33 76.12 179.6 2008 41.05 34.1 29.48 1 Royal sundaram 2 TATA-AIG $ 3 Reliance 4 IFFCO TOKIO 5 ICICI Lombard 6 Bajaj Allianz Source: www.51 145.68 90.13 26.54 154.4 .

39 288.99 987.gov.in CHART NO: 4.143.9 682.047.05 1.92 756.24 1.09 455.87 2008 410.34 843. No Company Year 2007 303.9 1.01 1.78 1.06 448.72 .18% & in 2010 was 34.5 Motor Insurance Gross Premium hold by top six Private General Insurance companies (Rupees in Crores) S.24 158.45 INTERPRETATION: From the above table it is clear that.26 per cent.254.77 1.82 2009 440. past four years ICICI Lombard having high gross premium compared with others competitors in Engineering insurance and followed by Bajaj Allianz had high gross premium.46 1. in 2008 18.44 1 Royal sundaram 2 TATA-AIG $ 3 Reliance 4 IFFCO TOKIO 5 ICICI Lombard 6 Bajaj Allianz Source: www.20 2010 556.385.92%.irda. In the year 2007 premium difference was 12.71 per cent.030.279. TABLE NO 4.96 515.96 1. Premium difference between these companies in 2009 was 42.37 582.18 265.

ICICI Lombard & Bajaj Allianz had perfect competition among them compare to others competitors. In the year 2007 ICICI Lombard and Bajaj Allianz had good premium. Reliance had high premium than Bajaj Allianz With some 1. In 2009 Reliance and Bajaj Allianz had good premium.46 INTERPRETATION: From the above table it is clear that. .19% difference.84% between them.65% between them. In 2010 Bajaj Allianz and ICICI Lombard had good premium compare to other competitors. but difference was 11. but difference was 7. past four years Reliance. In 2008 Bajaj Allianz and ICICI Lombard had good premium compare to other competitors.7% difference. ICICI Lombard had high premium than Bajaj Allianz With some 26.


TABLE NO 4.6 Motor OD Insurance Gross Premium hold by Top six Private General Insurance Companies
(Rupees in Crores)

S. no

Company name

Years 2007 266.68 262.21 408.67 348.63 956.73 668.39 2008 330.74 221.52 916.23 352.7 906.48 1,002.86 2009 341 135.55 722.54 354.43 680.55 745.13 2010 441.95 239.22 518.32 474.99 807.59 947.66

1 Royal sundaram 2 TATA-AIG $ 3 Reliance 4 IFFCO TOKIO 5 ICICI Lombard 6 Bajaj Allianz Source: www.irda.gov.in



INTERPRETATION: From the above table it is clear that, past three years Bajaj Allianz and in 2007 ICICI Lombard having high gross premium compared with others competitors. In the year 2007 ICICI Lombard and Bajaj Allianz had good premium range, ICICI Lombard had high premium than Bajaj Allianz with some 30.14% difference.

In 2008 Bajaj Allianz and ICICI Lombard had good premium compare to other competitors, but difference was 9.6% between them.

In 2009 Bajaj Allianz and Reliance had good premium, Bajaj Allianz had high premium than Reliance with some 3% difference.

In 2010 Bajaj Allianz and ICICI Lombard had good premium compare to other competitors, but difference was 14.8% between them.


TABLE NO: 4.7 Motor TP Insurance Gross Premium hold by top six Private General Insurance companies
(Rupees in Crores)

S. No.

Company name

Years 2007 36.71 25.88 46.39 100.27 186.6 175.48 2008 79.44 43.48 351.14 229.55 373.29 382.96 2009 99.24 23.24 325.42 161.56 306.5 285.07 2010 114.78 40.7 238.58 207.47 298.36 306.78

1 Royal sundaram 2 TATA-AIG $ 3 Reliance 4 IFFCO TOKIO 5 ICICI Lombard 6 Bajaj Allianz Source: www.irda.gov.in



INTERPRETATION: From the above table it is clear that, past four years ICICI Lombard having high gross premium compared with others competitors. In the year 2007 ICICI Lombard and IFFCO TOKIO had good premium range, ICICI Lombard had high premium than IFFCO TOKIO With some 16.29% difference.

In 2008 ICICI Lombard and TATA-AIG had good premium compare to other competitors, but difference was 56.39% between them.

In 2009 ICICI Lombard and IFFCO TOKIO had good premium range, ICICI Lombard had high premium than IFFCO TOKIO With some 13.75% difference.

In 2010 ICICI Lombard and TATA-AIG had good premium compare to other competitors, but difference was 8.99% between them.

79 2010 10.19 78.7 84.in CHART NO: 4.89 15. 1 2 3 4 5 Company name Royal sundaram TATA-AIG $ Reliance IFFCO TOKIO ICICI Lombard Years 2007 8.51 TABLE NO: 4.26 52.8 .78 47.8 Liability Insurance Gross Premium holds by top six Private General Insurance Companies (Rupees in Crores) S.75 37. No.1 32.03 12.23 81.02 29.99 114.91 2009 9.73 14.11 114.gov.43 14.73 2008 6.42 76.62 73.36 6 Bajaj Allianz Source: www.3 89.28 102.6 47.irda.47 10.

86% between them. In 2009 TATA-AIG and ICICI Lombard had good premium range. ICICI Lombard had high premium than TATA-AIG with some 12.27% difference. but difference was 21. but difference was 23. .52 INTERPRETATION: From the above table it is clear that. In 2010 TATA-AIG and ICICI Lombard had good premium compare to other competitors. In 2008 TATA-AIG and ICICI Lombard had good premium compare to other competitors.56% difference.31% between them. TATA-AIG had high premium than ICICI Lombard with some 29. past three years TATA-AIG and in 2007 ICICI Lombard having high gross premium compared with others competitors. In the year 2007 ICICI Lombard and TATA-AIG had good premium.

19 1 Royal sundaram 2 TATA-AIG $ 3 Reliance 4 IFFCO TOKIO 5 ICICI Lombard 6 Bajaj Allianz Source: www. No.42 2010 29.21 2009 21.53 TABLE NO: 4.41 140.81 87.24 33.47 87.72 157.07 2008 10.78 12.irda.49 215.59 129.29 9.03 158.07 79.15 91.9 Other Insurance Gross Premium holds by top six Private General Insurance companies (Rupees in Crores) S.9 .in CHART NO: 4.96 68.17 106.94 27. Company name Years 2007 7.27 127.83 55.04 27.19 109.gov.2 19.

In 2008 Bajaj Allianz and ICICI Lombard had good premium compare to other competitors. In the year 2007 ICICI Lombard and Bajaj Allianz had good premium.54 INTERPRETATION: From the above table it is clear that. past four years ICICI Lombard having high gross premium compared with others competitors.21% difference. Bajaj Allianz had high premium than ICICI Lombard with some 16. In 2010 ICICI Lombard and Bajaj Allianz had good premium compare to other competitors.6% difference.61% difference. . ICICI Lombard had high premium than Bajaj Allianz with some 18.9% between them. but difference was 34. In 2009 Bajaj Allianz and ICICI Lombard had good premium. Bajaj Allianz had high premium than ICICI Lombard with some 30.

in CHART NO: 4.gov.10 .55 TABLE NO 4. 10 Capital required starting insurance company (Rupees in Crores) S No 1 2 COMPANY Life and Non-life Insurance Re insurance CAPITAL 100 200 Source: www.irda.

No. 100 crores.27 31.11 Company name Years Aviation 0 0 45.11 Diversity of competitors in other products than what L&T Insurance offers (Rupees in Crores) S.in CHART NO: 4.38 94.94 0 Personal accident 28.93 74.irda.59 TATA-AIG $ 0 87.84 191.9 39.1 ICICI Lombard 45. 200 crores.21 37.68 20.71 IFFCO Tokio 37.51 235. 1 2 3 4 5 6 7 Marine hull Health Royal Sundaram 0 120. In the case of a re-insurance company the minimum paid-up equity capital will have to be Rs.49 Reliance 14.28 131.95 L&T 0 0 Source: www.57 0 .080.05 Bajaj Allianz 3.21 1.91 71.gov. TABLE NO: 4.89 20.56 INTERPRETATION: Non-life insurance company will not be registered unless the company has a paid-up equity capital of a minimum Rs.

43 0. that competitors offering some other insurance segments which was our offering.80 3.14 6.57 INTERPRETATION: From the above table it is clear.95 4.33 1.30 10.70 .69 2. it was offered by four competitors in that segment ICICI Lombard had high premium than others.69 1.06 2.90 3. Personal accident insurance was offered by all our competitors in that TATA-AIG had high premium than other competitors. Like Marine hull. TABLE NO: 4. Health insurance was offered by all our competitors in that ICICI Lombard had very high premium than others. Aviation insurance was offered by four competitors in that segment ICICI Lombard had high premium than others. No 1 2 3 4 5 6 7 8 9 10 11 Insurer Royal Sundaram TATA-AIG $ Reliance IFFCO Tokio ICICI Lombard Bajaj Allianz HDFC ERGO Cholamandalam Future Generali Universal Sompo Shriram Market Share 2.12 Market share of companies’ in general insurance industry (Rupees in Crores) S.

86 12.21 0.00 Grand Total Source: www.05 0.99 14.58 12 13 14 15 16 17 18 19 20 Bharti Axa Raheja QBE* SBI L&T New India National United India Oriental 1.02 0.64 100.gov.irda.12 .23 13.01 17.in CHART NO: 4.

13 Growth rate of general insurance industry in past four years (Rupees in Crores) . SBI. oriental and ICICI Lombard.59 INTERPRATATION: From the above table it is clear that new India having more market shares. secondly united India followed that national. Raheja QBE and L&T having least market shares. TABLE NO: 4.

32 1.767.60 S.80 3.41 2.980.516.13 .813.432.44 582.41 3.585.97 1.142.57 421.880.51 0. No.39 304.50 7.61 748.126.33 28.170.80 15 0 12.62 784.08 5.70 4.186.14 1.969.irda.95 2.69 23.26 Source: www.623.80 1.888.63 6.70 3.557.111.87 911.082.07 1.01 4.10 1.324.960.10 1.27 1.998.157.63 7.11 12.01 303.96 1.62 712.89 835.29 341.in CHART NO: 4.69 754.49 591.887.03 25.49 30.25 1.172. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Insurer Fire Marine Marine Cargo Marine Hull Engineering Motor Motor OD Motor TP Health Aviation Liability Personal Accident All Others Total Industry growth rate 2007 2008 2009 2010 4.11 626.191.835.092.803.402.66 8.03 4.39 3.96 722.93 885.051.476.486.376.71 8.40 10.72 1.31 1.83 24.197.678.34 12.896.95 2.633.835.48 774.55 3.617.61 464.gov.48 669.50 10.

26 points based on 2007 total value.61 INTERPRETATION: From the above table it is clear that growth rate of the insurance industry.51 points. increased in 2008 up to 12. TABLE NO: 4. in 2009 it was reduced in to 0.14 Insurance Products offered by L&T Insurance (Rupees in Crores) .69 points & in 2010 it was increased at 23.

28 5.32849 1.73 1.78412 31.19708 23.859891 100 Source: www.69 Percentage 12.42 0 0 0.382481 0 0 5.101602 0 4.in CHART NO: 4.irda.35 0.8146 7.62 Insurance products 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Fire Marine Marine Cargo Marine Hull Engineering Motor Motor OD Motor TP Health Aviation Liability Personal Accident All Others Total L&T Insurance 0.29 0 0.08 0 0.32849 0 12.15 .69 0.08 0.2 1.gov.77 1.

PRODUCT INNOVATION L & T GENERAL INSURANCE IS PLANNING FOR NEW PRODUCTS . Marine & Marine cargo insurances both cover 1%. Liability insurance covers 5%. Motor OD insurance covers 24%. 31% was covered by Motor insurance segment. L&T Insurance offering 9 insurance products.63 INTERPRETATION: From the above table it is clear that. Motor TP insurance covers 8%. In total L&T insurance. Engineering insurance covers 13% from total. Fire insurance covers 12%.

16 Number of Competitors available to L&T Insurance in various segments (Rupees in Crores) . company is expecting to gross a written premium of 14-15 crores. 2011.64 L&T General Insurance Company is planning to launch some new health insurance products to make growth inroads in the general insurance market in the next financial year. Currently they have 430 licensed agents in L&T General Insurance and they are planning to include more agents in Tier-2 and Tier-3 cities.7-8 crores in premium. By end of March. TABLE NO: 4. As the general insurance industry has rated growth rate of 22. The company is focusing itself into health insurance and micro insurance. There are agents already working in smaller cities as we perceive micro insurance to be another focus area. L&T General Insurance is the latest entrant in the Indian general insurance sector and so far launched 25 products and registered Rs. Company is also tapping corporate part of L&T eco-system which includes corporate customers of L&T.1% in first nine months of current financial year. L&T General Insurance was launched by engineering company L&T with a paid-up capital of 175 crores and has already set up 10 branches. this is a tremendous potential for L&T General Insurance to establish itself in general insurance market. this is why they all planning for compressive products for health insurance sector. borrowers of L&T finance and investors in L&T Mutual Fund.

1 2 3 4 5 6 7 8 Types Fire Marine Marine Cargo Engineering Motor Motor OD Motor TP Liability Number of substitutes 18 17 17 18 18 18 18 18 19 All Others 9 Source: www. In Fire.in CHART NO: 4.16 INTERPRETATION: L&T insurance offering 9 segment of insurance every segment having many competitors. TABLE NO: 4. Engineering. No. Motor TP & Liability 18 competitors are available.65 S.gov. In Marine & Marine Cargo 17 competitors are available. In other insurance segment 19 competitors are available. Motor. Motor OD.irda.17 Consolidated Gross premium amount of seven general insurance companies details including L&T Insurance .

30 87.72 114.36 89.22 40.05 279.17 .47 47. 1 2 3 4 5 6 7 8 Insurance Segments Fire Marine Marine Cargo Engineering Motor Motor OD Motor TP Liability 9 All Others Royal Sundaram 37.43 19.92 239.49 125.49 18.78 10.73 1.66 S.96 807.16 32.19 Source: www.60 27.44 947.254.51 556.63 756.76 102.49 27.gov.59 298.99 207.08 0.28 Lombard Allianz 244. No.29 0.in CHART NO: 4.46 474.66 306.08 0.22 116.70 114.18 57.48 1.35 0.69 0.irda.78 76.32 238.95 114.63 682.42 215.49 18.42 65.105.65 34.81 33.14 44.43 80.77 1.49 ICICI Bajaj L&T 0.43 18.36 140.32 53.72 441.58 14.81 176.99 29.04 Insurers IFFCO Reliance Tokio 75.81 76.42 0.20 TATAAIG $ 153.90 518.41 193.33 1.16 114.

which are Motor. IFFCO Tokio and L&T don’t have high gross premium in any segment. Motor OD and Motor TP. TATA-AIG have high gross premium in two segments. TOOLS: . motor. which are marine cargo and liability. that was fire. engineering and in other insurance. Bajaj Allianz have high gross premium in three segments. Royal sundaram.67 Interpretation: ICICI Lombard have high gross premium in four insurance segments. Reliance.

68 Fish bone diagram Power of buyers Threat of new entrance Power of suppliers Switching cost Capital requirement Money Need for insurance Brand equity Competitor’s available Existing loyalty Porter's five forces analysis Product differentiation Settlement Product innovation Number of competitors Rate of industry growth Diversity of competitors Threat of substitutes Competitive rivalry TREND ANALYSIS (Rupees in Crores) S. No. Insurer 2007 2008 2009 2010 .

irda.835.00 0.34 12.633.126.00 0.142.880.in CHART NO: 4.00 0.617.092.11 12.32 1.93 885.55 3.63 6.00 123.960.476.969.324.49 591.01 4.172.557.01 303.432.51 2.887.40 10.33 28.486.1 .376.96 1.767.41 112.61 464.27 1.00 0.00 0.71 8.83 24.888.70 4.50 7.998.87 911.gov.516.623.186.896.41 100 3.67 3.14 1.678.25 1.70 3.00 0.26 Source: www.96 722.00 0.051.66 8.03 4.08 0.585.72 1.62 712.97 1.402.80 3.80 1.95 2.00 0.69 754.63 0.00 100.62 784.57 421.803.50 10.1 1.61 748.00 0.980.31 1.00 0.1 1.69 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Fire Marine Marine Cargo Marine Hull Engineering Motor Motor OD Motor TP Health Aviation Liability Personal Accident All Others Total Trend value 4.44 582.197.157.

67%. I calculated trend analysis base year data is 2007. Consider that 2007 industry growth was 100%. the growth rate was 100.26%. Year 2009 insurance industry rate was decreased than 2007 growth rate. CONCENTRATION RATIO: . based on general insurance industry premium underwritten the companies data. In the year 2010 insurance industry rate was increased than past years123.70 INTERPRATATION: From the above table it is clear that.51%. Year 2008 insurance industry rate was increased up to 112.

..99+14..72 In general insurance industry most of the market shares are hold by four major companies. So the general insurance industry is monopoly in nature.. + sm =17..64 =58.. + sn2 ...86+12... HERFINDAHL-HIRSCHMAN INDEX (HHI): HHI = s12 + s22 + s32 + .23+13.71 S1= New India insurance S2= National insurance S3= United India insurance S4= The Oriental insurance CR m = s1 + s2 + s3 + .

00156025 0.0004761 0.00000004 0.69 1.72 Insurer Royal Sundaram TATA-AIG $ Reliance IFFCO Tokio ICICI Lombard Bajaj Allianz HDFC ERGO Cholamandalam Future Generali Universal Sompo Shriram Bharti Axa Raheja QBE* SBI L&T New India National United India Oriental Grand Total Market Share 2.21 0.86 12.0297 0.043000139 0.012127498 0.001849 0.0221 0.14 6.00093636 0.000289 0.148587665 0.06 2.004624 0.01 17.02 0.067970157 0.00014641 0.01957201 0.029046123 0.00 Value in per cent X=MS/100 0. So the general insurance industry is a purely monopoly in nature.90 3. SUMMARY AND CONCLUSION The study attempts to analyze the insurance companies using “the porter’s five forces analysis”.023311505 0.23 13.926592% Based on HERFINDAHL-HIRSCHMAN INDEX (HHI) value is closer.02691383 0.0159 1 0.101372858 0.010201 0.000185242 0.00000001 0. The analysis had been done by using information collected from IRDA’s insurance .017005928 0.00020449 0.43 0.80 3.00000025 0.014323197 0.99 14.33 1.00072361 0.139873114 0.30 10.00054289 0.95 4.0395313 0.000466924 0.006891956 0.172348344 0.64 100.69 2.000124519 0.126350639 X² 0.1096664 10.70 1.000841 0.030569064 0.05 0.

ICICI Lombard. for the past four years ICICI Lombard had high gross premium followed by Bajaj Allianz is also having high premium. As a impact all six companies gross premium started to decreased compared to the gross premium in 2007. Both companies having good market power in in Engineering insurance. Bajaj Allianz and Reliance had high gross premium.  In Engineering insurance. But the trend of gross premium decreasing because of new entrance to the industry. 2007 & 2010 ICICI Lombard had high premium and in 2008 & 2010 Bajaj Allianz had high gross premium.  In Motor OD insurance. on the basis of the findings the researcher also suggested some valuable points to overcome the problems faced by the insurance companies in industry.  In liability insurance. This may be due to ICICI Lombard having good brand image in marine insurance. . This company having good market image in this segment. Since the industry is going in increasing trend. Due to the entrance of 7 new general insurance companies within 3 years from 2007. ICICI Lombard. ICICI Lombard. Bajaj Allianz & Reliance had high premium compared to other competitors. Bajaj Allianz & Reliance had high premium compared to other competitors.  In other insurance. past four years TATA-AIG had good gross premium compare to other competitors.  The need for motor insurance is increasing due to increase vehicle insurance.  In Marine cargo insurance. The following are the findings.  In Motor TP insurance.  In Marine insurance. ICICI Lombard had high gross premium compared to other competitors for all the past four year.  Capital requirement for starting life and non-life insurance company is 100 crores and for starting of re-insurance company is 200 crores.73 industry gross premium data of past four years. Findings:  It is found that. from past four years TATA-AIG was the only company which had high gross premium.

 Industry growth rate in 2008 increased 12. in 2008 was 100.New India Incorporated on 1919. Suggestions The study reveals that good market image is the one main reason for increasing the market share. These products not offered by L&T Insurance.  Majority of the market shares are owned by four companies.  L&T Insurance mostly covers. it is closer. And 2010 it increased into 23.51 per cent.51 per cent. 2009 it reduced in to . .2 per cent. this may be a plus point to the companies.926592 per cent.72 per cent. So the insurance industry is purely monopoly in nature. United India Insurance Company Limited was incorporated on 1938.69 per cent.67 per cent and in 2010 was 123. Bajaj Allianz. The top four private companies like ICICI Lombard. motor insurance 31 per cent.26 per cent.  Trend values of insurance industry in 2008 was 112. This is due to those companies having huge experience in GI industry. 13 per cent in engineering.74  Health and personal accident schemes are offered by all six companies and marine and aviation offered by four companies. 24 per cent in motor OD.  Concentration ratio is 58. it is observed the L&T being reputed company in other business.  HERFINDAHL-HIRSCHMAN INDEX (HHI) value is 10. 5 per cent in liability and same 5 per cent in other insurances and finally marine & marine cargo having both 1 per cent. Oriental Insurance Company Ltd was incorporated on 1947. presently operating as a Government of India undertaking. in other insurance 19 competitors is available. 8 per cent in motor TP. 12 per cent in fire insurance. in marine and marine cargo insurance 17 competitors available and for other 6 insurance 18 competitors are available. IFFCO Tokio and Reliance holding a good market share as a result of their reputation. their brand image can help them to capture more market share in future.  L&T Insurance offering 9 products. National Insurance Company Limited was incorporated on 1906. Hence. So the industry is purely monopoly in nature.

From the study it is found that majority of gross premium is hold by ICICI Lombard . The study also gives a clear view about the possibilities to increase the market share in future.75 Though the study is confined only to private insurance companies. CONCLUSION: “A study on the porters five forces analysis of general insurance industry with special reference to L&T Insurance Limited. As suggested in the study. This is due to the trust of customers towards the company. United India and Oriental are holding the majority of market shares. Hence L&T may take more steps to build a strong trust in the mind of customer to increase the market share in future. Just like motor insurance. health insurance is also having high growth opportunity. Hence L&T as it haves a new proposal to enter health insurance may benchmark the schemes offered by ICICI Lombard to capture more gross premium in the initial stage. the reputation of company of may help the company to capture more market share in futures. Among the various general insurance. . motor insurance is identified to have a high growth rate. Chennai” helps to know the competitive intensity in general insurance industry. L&T may give some attractive schemes to capture more potential motor insurance customers in future. in concentration ratio it is identified that government companies like New India. National.

20 . The study may be extended to other industries also.00 0.00 27.73 0.37 2010 2009 0.00 33.76 The outcome of the study may also applicable other insurance company. 1 Insurer Royal Sundaram Year Fire Marin Marin e Marin e Carg e Hull o 0. Gross premium underwritten by non-life insurers with in India (Segment wise): for the period of four years (Rupees in Crores) S No.07 Engineeri ng 0.00 15.67 0.00 15.

53 7.37 0.91 44.02 45.25 130.14 2.56 23.66 26.32 53.00 10.76 160.72 126.16 75.41 157.75 12.15 0 0 41.22 62.85 18.07 0 0 0.9 0.59 127.42 67.63 72.32 32.68 34.86 42.1 80.00 0 17.14 53.94 17.47 14.37 29.72 234.00 1.00 0.33 125.16 86.10 0.45 69.17 0 0.49 15.00 0 0 0.92 71.16 86.14 2.27 56.76 176.49 15.81 105.12 3.61 3.00 0.25 125.94 0.18 67.25 153.72 145.81 47.19 193.66 179.64 16.77 8.31 114.86 31.99 3.07 76.8 294.44 18.29 32.13 3.12 3.70 0.87 17.41 24.66 11.09 7.02 2.12 90.21 55.48 438.45 18.51 177.13 27.49 37.49 234.58 38.32 31.09 0.45 129.77 2008 2007 2010 2009 2008 2007 2010 2009 2008 2007 2010 2009 2008 2007 2010 2009 2008 2007 2010 2009 2008 2007 2010 2009 2008 2007 69.73 37.36 89.00 0.00 0.96 102.1 40.69 5.05 244.6 76.51 27.65 99.58 1.08 37.59 0.29 26.38 0 9 Future Generali 2010 2009 2008 2007 10 Universal Sompo 2010 2009 2008 .92 154.72 10.72 0 3.39 53.54 26.72 0 3.84 14.81 146.05 31.55 155.37 0 28.43 118.73 97.25 403.99 29.83 224.63 61.43 33.50 23.54 93.53 381.92 71.99 0.4 0.88 52.99 0 2.37 17.49 60.92 33.42 101.56 11.09 0.20 133.99 57.27 18.18 176. Insurer Year Fire Marin e e Carg o 8 Marin e Hull Engineeri ng Cholamandala m 2010 2009 2008 2007 39.89 8.58 103.70 56.91 23.41 72.54 116.51 5.24 65.69 6.65 18.19 287.23 80.47 70.48 0.18 25.17 0 30.31 114.67 97.48 72.92 12.65 22.43 53.58 4.56 3.28 99.48 31.57 77.98 2 TATA-AIG $ 3 Reliance 4 IFFCO Tokio 5 ICICI Lombard 6 Bajaj Allianz 7 HDFC ERGO Marin S No.28 48.99 0.

23 214.71 437.93 0.34 1.94 20.00 0.97 0 0.02 0.00 0.00 8.72 538.21 125.91 0.00 0.31 0.00 0.01 0.58 162.00 0.90 8.77 0.68 254.00 221.00 108.29 0 0.85 155.78 220.00 192.00 499.27 0.59 743.7 158.26 3.00 0.00 163.71 134.52 196.09 27.00 0.10 74.00 784.25 0.08 4.51 385.60 145.43 0.54 349.00 8.54 0.64 210.14 0.78 0. Insurer Year Fire Marin e e Carg o 18 Marin e Hull Engineeri ng United India 2010 2009 2008 2007 2010 2009 2008 2007 2010 2009 2008 2007 0.00 343.26 3.00 300.47 292.376.21 0 0.23 222.04 181.633.00 0.89 0.00 0.76 0.516.19 148.31 80.09 139.78 700.73 242.00 0.32 9.00 524.69 0.5 0.02 183.42 909.00 0.28 321.30 176.5 168.00 0.00 0.432.98 325.00 1.1 135.03 182.80 4.00 180.00 1.08 193.52 491.00 0.04 0.71 103.00 3.62 885.1 748.05 0.68 203.38 118.32 188.78 2007 2010 2009 2010 2009 2010 2009 2010 2010 2010 2009 2008 2007 2010 2009 2008 2007 0 1.61 0.68 0 0.52 0.53 221.83 594.73 369.21 428.00 225.74 129.00 0.32 0.32 76.21 209.23 49.00 0.2 120.83 264.40 19 Oriental 20 Grand Total .00 0.95 11 12 13 14 15 16 Shriram Bharti Axa Raheja QBE* SBI L&T New India 17 National Marin S No.43 0.00 1.01 0.31 199.08 418.00 0.00 0.00 0.835.35 0.3 674.00 0.69 824.04 0.157.00 216.00 0.72 1.96 0.00 0.00 0.60 377.051.

21 40.6 1.23 408.39 191.080.60 15.89 7.36 306.06 518.55 .24 221.00 440.24 448.39 441.34 6 Bajaj Allianz 807.00 99.24 410.42 81.10 91.73 298.43 114.70 23.62 67.09 Motor OD 0.61 96.52 262.37 455.68 114.32 32.14 46.63 207.85 71.11 0 0.9 4 IFFCO Tokio 5 ICICI Lombard 474.99 354.00 265.91 26.00 68.59 680.01 288.74 47.05 628.62 43.267.00 341.99 9.27 131.78 99.00 0.00 0.42 352.43 1.71 120.75 6.57 373.80 Healt h 0.25 114.88 114.98 229.95 341.79 S.55 100. 1 Insurer Royal Sundaram Motor 0.62 108.30 37.27 39.143.07 89.89 31.59 91.61 735.74 266.26 2 TATA-AIG $ 3 Reliance 239.91 45.23 41.67 238.44 36.77 1.02 71.59 884.00 275.85 351.47 161. No.00 91.42 7.24 916.56 906.68 53.55 1.49 53.18 0.38 4.48 25.23 14.54 582.48 956.69 45.50 Motor TP 0.18 303.29 186.88 87.35 0.00 330.58 325.32 722.05 Aviatio n 0.24 79.279.00 0 0 10.00 0.71 181.7 348.22 135.

45 8.00 52.00 1.71 578.00 0.38 38.075.66 745.13 134.980. 8 Insurer Cholamandala m Motor 233.02 0.78 285.80 1.58 62.97 84.86 214.69 1.02 698.44 1.65 -0.00 1.385.85 0.44 76.19 1.02 0.310.49 0 0 0.25 158.6 0.00 0 0 0.56 97.39 306.00 0.06 263.95 9.86 668.36 2.30 1.45 620.26 22.60 23.46 62.31 0 0 0.12 684.51 0 0 130.33 2.13 0.36 1.49 9 Future Generali 100.98 937.51 1.20 0.70 2.77 0 10 Universal Sompo 31.00 0.28 1.05 801.95 220.63 40.26 80.00 0.79 0 0 7 HDFC ERGO S No.171.82 843.50 692.83 382.29 121.49 853.80 210.53 243.94 26.59 0.65 1.00 35.00 0.87 4.03 0.18 13.11 0.55 92.15 97.35 962.8 132.352.00 0 0 0.03 Health 0.69 6.71 1.034.81 1.80 650.91 0 0 124.321.3 16.85 77.11 1.05 0.95 1.13 16.00 0.33 245.85 270.26 20.08 53.002.7 333.54 0 5.16 Motor OD 95.034.00 0.68 814.08 42.98 74.29 33.44 118.42 690.93 50.51 0.23 0 12.64 1.31 1.02 0.48 235.50 38.4 5.16 11 12 13 14 15 16 Shriram Bharti Axa Raheja QBE* SBI L&T New India 17 National .00 0.14 Motor TP 122.87 947.92 0.73 980.00 0.07 119.00 0.097.15 0.36 52.12 Aviatio n 10.540.87 0.90 791.1 10.03 670.233.00 0.46 15.00 109.46 9.34 123.48 1.00 0.00 0 0 0.96 175.57 56.88 78.02 73.54 28.47 1.143.72 165.75 24.53 39.42 765.00 3.

5 767.678.00 633.88 0.39 0.00 0.44 440.43 774.48 694.88 5.26 0.00 966.70 3.08 0.39 0.00 4.191.71 10.186.00 0.50 Motor OD 536.219.00 0.61 19 Oriental 20 Grand Total . 18 Insurer United India Motor 625.36 669.25 1.732.11 0.00 12.55 0.4 451.880.00 78.86 341.56 7.092.402.887.89 26.80 Health 69.486.64 304.434.585.803.44 4.70 Motor TP 772.00 303.00 4.00 0.63 707.617.197.90 1.18 6.00 0.53 0.00 547.00 8.969.48 0.98 119.158.00 1.01 3.57 Aviation 78.03 1.54 0.01 7.36 8.082.88 1.13 45.29 727.81 S No.37 573.94 434.44 421.3 3.600.

4 895.31 0.68 16.00 2.15 26.150.19 12.78 10.20 21.64 46.42 1.946.26 695.20 21.95 6.46 79.29 7.00 0.15 2.19 127.81 33.399.089.99 9.47 1.77 26.00 1.00 0.235.47 91.00 216.16 600.72 158.44 1.45 5.45 0.80 7.35 24.19 30.69 2.30 4.42 912.76 .56 0.00 0.58 0.003.02 658.00 3.04 12.19 79.094.03 4 IFFCO Tokio 27.34 0.47 3 Reliance 19.73 73.49 68.43 17.34 1.00 0.78 84.62 9.7 5 ICICI Lombard 87.17 4.53 157.11 1.74 20.800.03 4.82 S No.96 32.18 113.73 7 HDFC ERGO 140.803.325.24 14.42 5.58 190.07 3.02 6 Bajaj Allianz 215.59 10.91 29.21 87.00 0.11 6.69 3.38 7.344.32 660.1 10.404.83 1.00 1.48 108.69 All Other s 29.2 2.38 21.39 741.32 0.218.00 0.68 2.00 813.90 2.32 660.62 2 TATA-AIG $ 29.07 6.74 3.17 Grand Total 829.123.17 78.94 2.33 109.28 8.09 52.27 47.41 106.83 27.8 829.26 106.16 10.00 1.61 55.78 102. 1 Insurer Royal Sundaram Liability Personal Accident 28.563.21 19.14 9.21 129.

02 0.55 7.509.00 5.79 Personal Accident 3.277.00 0.578.27 1.32 1.82 95.92 0.40 0.27 2.24 All Others 2.18 67.03 1.39 3.24 14.00 0.12 5.59 Grand Total 0.66 312.42 S No.44 30.813.25 3.00 0.05 0.739.65 60.55 63.940.310.37 3.17 36.03 95.15 524.00 0.80 100.49 74.67 314.111.017.86 334.70 0 0 1.71 1.00 10.00 0.48 0 0.99 373.77 25.00 0.00 0.411.00 4.00 0.20 0.01 17.19 0.64 0 0.43 31.00 0.23 17.25 0 0.00 20.02 83.43 0 115.24 0 0 11 12 13 14 15 16 Shriram Bharti Axa Raheja QBE* SBI L&T New India 0.35 5.84 5.05 373.00 0.38 1.00 0.00 0.75 501. 8 Insurer Cholamandal am Liabilit y 25.28 364.488.00 366.46 1.40 4.00 563.83 S No.42 9 Future Generali 7.10 14.46 1.39 3.68 13.69 0.99 4.76 504.83 13.59 0.030.68 0.63 252.7 Personal Accident 597.69 170.1 0 10 Universal Sompo 22.88 14.00 0.298.03 0.95 .62 334. 18 Insurer United India Liability 379.46 3.07 212.310.00 0.00 0.67.55 100.65 17 National 267.814.56 3.31 All Others 13.77 55.83 13.80 3.00 0.63 25.02 0 0 259.91 436.08 79.83 441.35 12.06 517.18 14.35 41.21 0.71 4.00 0.84 Grand Total 0.

61 632.00 28.00 88.03 0.2 68.847.33 2.48 0.97 582.00 1.1 591.00 0.00 397.84 19 Oriental 20 Grand Total 1.97 722.83 16.476.53 0.41 24.00 0.00 70.170.940.62 632.82.00 3.835.95 100.39 0.998.00 0.96 464.43 0.99 3.81 61.52 594.52 594.126.41 .49 25.029.960.82 415.