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nalyse HDFC’s insurance business, which is going through the worst of times during perhaps the best of times for the Indian insurance industry. As per the statistics available, life insurance penetration in India is estimated at 4.1% of GDP, with per capita life premium at $33. Comparing this with Asian averages, which stand at 5% and $154; and global averages which stand at 4.5% and $330. It is but apparent that the Indian insurance industry has a long way to go. It is estimated that by 2014, the penetration of life insurance in India will increase to 4.4%; by 2009, the industry’s value would reach Rs.1,683 billion; and ASSOCHAM optimistically projects a 500% increase in the size of industry (from $10 billion to $60 billion by 2010). Thus, to capture the untapped market, insurance companies have partnered with global partners; the domestic partners provide the networks and brand equity whereas the foreign partners take care of the design of the insurance products. Ever since the industry got privatised, HDFC has been a top example of why the concept of first mover’s advantage remains useless. In the life insurance segment, HDFC Standard Life has been losing ground to ICICI Prudential (the undisputed numero uno) and Bajaj Allianz.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
nalyse HDFC’s insurance business, which is going through the worst of times during perhaps the best of times for the Indian insurance industry. As per the statistics available, life insurance penetration in India is estimated at 4.1% of GDP, with per capita life premium at $33. Comparing this with Asian averages, which stand at 5% and $154; and global averages which stand at 4.5% and $330. It is but apparent that the Indian insurance industry has a long way to go. It is estimated that by 2014, the penetration of life insurance in India will increase to 4.4%; by 2009, the industry’s value would reach Rs.1,683 billion; and ASSOCHAM optimistically projects a 500% increase in the size of industry (from $10 billion to $60 billion by 2010). Thus, to capture the untapped market, insurance companies have partnered with global partners; the domestic partners provide the networks and brand equity whereas the foreign partners take care of the design of the insurance products. Ever since the industry got privatised, HDFC has been a top example of why the concept of first mover’s advantage remains useless. In the life insurance segment, HDFC Standard Life has been losing ground to ICICI Prudential (the undisputed numero uno) and Bajaj Allianz.For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
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