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Untitled Document
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Customer Speak
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Life Insurance Market in India - Private Players
Source: IRDA (www.irdaindia.org)
For the top spot, the battle is on. The clear winner of the last year,
ICICI Prudential now has a strong competitor in Bajaj Allianz. Even though
ICICI Prudential will probably end the year with the maximum number of policies,
Bajaj with a higher case size could race up to market leader. Meanwhile, quietly,
HDFC Standard Life has emerged as a distinct third.
The next band is a hotly contested segment. SBI Life and Birla Sun Life have not
been able to sustain their earlier advantage, and are making up case size loss
with volume gain, remaining static. Others are catching up fast. While most
players are converging on a middle path, there are two different players.
Kotak - leveraging their high net worth customer relationships - has a low
volume/ very high value customer base. Max New York Life has sharply lower case
size, but continues its aggressive volume growth.
Sahara, Met Life, ING Vysya, AMP Sanmar are yet to make the grade. These players
need to get high volume growth to be sustainable. Growth driven by case size
increases as with ING are unsustainable in the long run.
The early competitive advantage of product differentiation, based on unit-linked products,
with ICICI and Birla Sun Life has given way to distribution as the key competitive
advantage. A combination of channels -agency, banks and others - is emerging as the
key to driving growth by value and volume.
Analysts: Maheshwaran, Rachit Sahai, Surajit Basu
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