PRESENTED BY : KAIFEE KAZMI

ROLL NO. 13MBAW17

GB1218
Recent Trend in Marketing
Strategies and performance
evaluation of Life Insurance
Corporation of India

Abstract
Life Insurance Corporation of India (LIC) is a monolithic
company from last few decades. After the successful
implementation of economic reforms in life insurance sector
in India, LIC of India has made several positive efforts to
triumph the hearts of the people. To achieve that LIC of
India have adopted a number of new trends in marketing
strategies for introducing innovative technologies. This
study is an attempt to know about the recent trends followed
by LIC of India in order to make their products available to
each and every forthcoming customer in the life insurance
market. The present research paper is a comprehensive
study to know whether the implemented strategies have
truly helped LIC of India in the changing trends of the
society and will also suggest how these recent trends have
helped LIC of India as a whole to manage the existing
leading position in the life insurance market.

The setting up of the Insurance Regulatory and Development
Authority (IRDA) was a clear signal of the end of the monopoly in
the insurance sector. It has become imperative for LIC to face the
competition posed by the entry of new private players. If under
this pressure, Life Insurance Corporation of India improves its
performance, the whole economy will be benefited. The insurance
industry has undergone a drastic change since liberalization,
privatization and globalization of the Indian economy in general
and the insurance sector in particular. For almost four decades LIC
has been sole player with virtual monopoly in the life insurance
sector. The entry of so many companies in this sector was likely to
affect the performance of Life Insurance Corporation. Thus the
LIC public sector giant, which never faced competition earlier,
now has to compete with the private players who boast of the rich
and long experience of their partners from the developed countries
of the world
Introduction
The insurance sector in India has completed a full circle
from an open competitive market to nationalization and
then back to liberalized open market. The insurance
sector in India has completed a full circle from an open
competitive market to nationalization and then
back to liberalized open market. LIC of India has been the
bystander of the entire transformation from one phase to
another. In 2000, when Insurance Regulatory and
Development Authority (IRDA) was set up in India, 23
more private life insurance companies entered till date
into the Indian market other than one already existing
public life insurance operator LIC of India.

COMPANY PROFILE
Name of the company: Life Insurance Corporation of
India.
Head Office:Yogakshema Jeevan Bima Marg, P.B.No.
19953. Mumbai - 400021
Organizational Structure till today:
Central office - at Mumbai
Zonal offices - 8
Divisional offices - 106
City Branches 790
Moffussill Branches 1258
Total Branches - 2048
Branches in Centers 1363
Emerging private players
Years Public Private Total
2001 1 10 11
2003 1 12 13
2005 1 14 15
2007 1 17 18
2009 1 22 23
2011 1 23 24
2013 1 25 26
Purpose of the study
LIC of India plays a vital role in the growth of life
insurance sector and also to the economic development of
the country. Since economic reforms the life insurance
sector is changing rapidly due to the continuous change in
the customer needs and preferences. These changes have
helped in a great number to both the urban and rural
consumers. Life Insurance Corporation of India has
worked continuously hard to grow since 2000. In order to
increase its business LIC of India has increased their life
insurance offices.
Objective of the Study
To know about the recent trends in the marketing
strategies adopted by LIC of India.
To know whether the new adopted marketing strategies
have helped LIC of India to increase their business
volume.
To understand the importance of Life Insurance in
human life.
To know the working of LIC (Life Insurance
Corporation).
To identify major attributes for the success of plans.
To evaluate the operating efficiency of LIC of India.
To measure the performance of LIC of India.
Hypothesis of study
IN ORDER TO ACHIEVE DEFINED PURPOSE OF THE STUDY
FOLLOWING HYPOTHESIS HAVE BEEN CONSIDERED.

Is the recent trends in marketing strategy adopted by LIC
are fulfilling the customer needs and preferences.


Is the recent trends in marketing strategy adopted by LIC
are helpful in terms of increased volume.


Ho: There is no significant difference in expenses of
sampled unit during the period of the study.

H1: There is significant difference in expenses
of sampled unit during the period of the
study
Hypothesis of the study: Following is
the hypothesis of the study.
Research Methodology
The research methodology adopted for this study is
basically related to the evolutionary research method.
The research study is based on the secondary sources for
collecting data.
The secondary data consisted of Annual reports of LIC
and IRDA and also some other published journals and
magazines of LIC like Yogeashema monthly journal.
The present research study is mainly based on the Annual
reports of I.R.D.A. and LIC of India for important data of
respective years since 2000 till 2013. The research study
has also collected some information from websites of LIC
and IRDA.
Research methodology
Sampling: The Insurance industry now a day has so many Life
Insurance institutions in India; I have selected LIC of India as a
sample.
Tools & Techniques of the Study: I have used the tools as per
the need and type of the study. The information so collected
has been classified, tabulated and analysed as per the
objectives of the study. As per the nature of the data available
the graphical presentation was also done. As per the
objectives of the study F-test was applied.
Significance of the study: Life insurance is a very significant
factor in human life. The present study gives the perfect
knowledge of life insurance and current situation of LIC plans.
Life insurance being an important form of social security. In
this present world human life become so risky.

Data collection and analysis
The research has mainly focused its findings based on the
Annual Reports of LIC and IRDA for respective years
and also from Life Insurance Today.
Besides, a few websites of LIC and IRDA have also been
consulted to collect data related to the research study.
The data used in the paper covers the period from 2000 to
2012. Based on the collected data analysis has been done
with appropriate observation techniques.

Product development fundal
Since after the setting up of IRDA it had became imperative
for LIC of India to face the competition posed by the entry of
new private players. Life Insurance Corporation of India not
only managed to uphold the high pressure confidently but is
also improving its performance day by day. According to the
changing demand of the society LIC of India has changed a
lot in the nature of products they offer to their customers. LIC
of India today has many new innovative products spread
over a large canvas. LICs products and services are scattered
in various dimensions right from the basic Insurance plans
to special plans for special people. All these varied products
give a strong marketing orientation to LIC of India. The
product line of LIC of India includes products like several
Endowment plans, pension plans, unit link plans, money back
plans, health insurance plans etc.

SCOPE OF THE STUDY
The present study covers secondary data of LIC of India
during the period of the study. Besides, commission
expenses and operating expenses of LIC have also been
included for the analysis of operating efficiency.
LIMITATION OF THE STUDY
This study is restricted or limited to Life Insurance
Corporation (LIC) of India only.
It should be noted that the suggestions and conclusion
viewed here would be as per the data collected by the
researcher.
DATA ANALYSIS

Life Insurance Corporation (LIC) is doing business of
Insurance in India since 1961. By providing insurance, as
such it tries to secure the human life value and there by
adds further security to the person having insurance
policy. As mentioned earlier that as per the type and
nature of the data available researcher has analyzed major
five components of the expenses of the sampled unit. All
Expenses are analyzed through statistical measures. This
chapter goes further, and Descriptive Analysis has been
being carried out. The following table shows the major
five variables which are taken for the analysis.
Findings
it is clearly observed that there is an overall growth in
NOP from 19673320 in 2000-01 to 35751238 in
2011-12 except a small number of down falls in a few
years.
the marketing strategies adopted by LIC of India is
helpful in increasing their business volume but a lot have
to be done
in the areas of increasing number of lives which will
certainly affect the overall performance of the
corporation.
Conclusion
The present state of Life Insurance Sector in India is awe-
inspiring as far as the awareness of customers is
concerned.
LIC of India has well managed to take the spirit of
competition in a positive way which has helped the
corporation to grow further with high strength of mind in
contribution to the growth of the country.
The present research study thus reveals
those important areas where more contribution on the part
of LIC of India is required. The one is to increase in the
number of offices both in urban and rural areas which
will help the corporation to increase
their business and reach among the customers.
LIC of India must increase their agents base to retain its
dominating market share because agents are the backbone
of the corporation.
LIC of India should also open more Life- Plus offices and
authorized collection centers to make its objectives
achieved in true way to spread the life insurance business
in every nook and corner of the country.