COMPETING FOR COVERAGE: STRATEGIES AND CHALLENGES
FOR INDIA’S LIFE INSURANCE MARKET CASE STUDY
SOLUTION
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SYNOPSIS
The insurance industry’s potential for growth in India has attracted numerous organizations, each armed
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with their most efficient strategies. India’s life insurance market is undergoing a transformation, marked
by fierce competition and changing consumer preferences. Public and private life insurance companies
and emerging insurtech (insurance technology) companies coexist, intensifying the competition for
coverage in a rapidly expanding market.
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This comprehensive case study delves into the complex world of India’s life insurance distribution,
tio
examining the strategies employed and challenges faced by all contenders as they strive for market
share, customer loyalty, and sustainable growth. The study critically evaluates the performance of
existing distribution channels, raising questions about their relevance and effectiveness in this dynamic
environment, in order to gain insights into the intricacies of India’s life insurance sector and shed light
lu
on the strategies and innovations required to realize the vision of the Insurance Regulatory and
Development Authority of India’s (IRDAI) Insurance for All by 2047. 2
So
OBJECTIVES
• apply Porter’s five-forces framework to India’s life insurance industry to analyze the degree of
competition and scope for coopetition;
• construct a positioning map to visualize the competitive positioning of insurers based on the
emerging industry themes;
• analyze the readiness of insurance companies in line with the emerging themes of insurance;
• analyze whether the changing environment is in favour of insurtech companies;
• analyze the factors that can fuel the growth of insurtech in India;
• analyze the importance of multi-channel distribution; and
The Case Solution Starts From page 6
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pl
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Sa
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ASSIGNMENT QUESTIONS
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1. Analyze the degree of competition in India’s life insurance industry by applying Porter’s five-forces
framework and evaluate the scope for coopetition.
2. Position life insurance organizations on the emerging themes of life insurance to assess which
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organization type is best positioned for future changes.
3. Analyze the future readiness of insurance organizations in line with the emerging themes of insurance.
So
4. Analyze how the changing environmental factors favour the different organization types.
5. Analyze the factors that can fuel the growth of the insurtech sector in India.
6. Analyze the importance of multi-channel distribution and which organization type (public, private,
or insurtech) has best taken advantage of it.
The Case Solution Starts From page 6
,ANALYSIS
1. Analyze the degree of competition in India's life insurance industry by applying Porter's five-
forces framework and evaluate the scope for coopetition.
Competitive Forces in the Insurance Market
1. Threat of new entrants:
Life Insurance Corporation of India (LIC). LIC has a strong presence and reputation with a large network
of branches and agents, making it difficult for new entrants to establish a similar nationwide reach. The
trust and brand loyalty LIC has built over decades act as significant barriers to new entrants.3
Private life insurance companies. Private insurers have managed to capture a substantial market
share but still face challenges in competing with LIC’s extensive network. The high capital
requirements and regulatory hurdles act as barriers to new entrants.4
Insurtech companies. Insurtech start-ups can enter the market with innovative digital solutions, but may
face challenges in gaining customer trust and building a distribution network comparable to LIC’s.5
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2. Bargaining power of suppliers:
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Sa
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So
The Case Solution Starts From page 6
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pl
m
5. Analyze the factors that can fuel the growth of the insurtech sector in India.
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Insurtech is a growing sector in India, with numerous factors fuelling its growth, including:
Rising internet and smartphone penetration. India currently has over 900 million internet users and
over 600 million smartphone users. This growing digital population is a key driver of insurtech
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growth, as it allows insurtech companies to reach customers directly and offer them convenient and
affordable insurance products and services.10
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Customer centricity. Insurtech improves customer experience in numerous ways, including: making
it easier for customers to purchase insurance products and services; providing customers with more
personalized and tailored insurance coverage; simplifying the claims process; and offering
lu
customers more convenient and accessible ways to interact with their insurance providers. Insurtech
is moving toward a more customer-centric insurance industry.11
Focus on customer experience. Insurtech companies are focused on providing a superior customer
So
The Case Solution Starts From page 6
, EXHIBIT -1: POSITIONING OF LIFE INSURANCE ORGANIZATIONS IN LINE WITH THE
EMERGING THEMES OF INSURANCE
Evolving themes Positioning
Life Insurance
Private life insurance
Corporation of India Insurtech companies
companies
(LIC)
Digitalization Moderate
Customer centricity Moderate
Personalization Limited
Ecosystem Limited
e
Embedded insurance
pl
m
Sa
n
tio
lu
So
The Case Solution Starts From page 6
FOR INDIA’S LIFE INSURANCE MARKET CASE STUDY
SOLUTION
e
pl
m
SYNOPSIS
The insurance industry’s potential for growth in India has attracted numerous organizations, each armed
Sa
with their most efficient strategies. India’s life insurance market is undergoing a transformation, marked
by fierce competition and changing consumer preferences. Public and private life insurance companies
and emerging insurtech (insurance technology) companies coexist, intensifying the competition for
coverage in a rapidly expanding market.
n
This comprehensive case study delves into the complex world of India’s life insurance distribution,
tio
examining the strategies employed and challenges faced by all contenders as they strive for market
share, customer loyalty, and sustainable growth. The study critically evaluates the performance of
existing distribution channels, raising questions about their relevance and effectiveness in this dynamic
environment, in order to gain insights into the intricacies of India’s life insurance sector and shed light
lu
on the strategies and innovations required to realize the vision of the Insurance Regulatory and
Development Authority of India’s (IRDAI) Insurance for All by 2047. 2
So
OBJECTIVES
• apply Porter’s five-forces framework to India’s life insurance industry to analyze the degree of
competition and scope for coopetition;
• construct a positioning map to visualize the competitive positioning of insurers based on the
emerging industry themes;
• analyze the readiness of insurance companies in line with the emerging themes of insurance;
• analyze whether the changing environment is in favour of insurtech companies;
• analyze the factors that can fuel the growth of insurtech in India;
• analyze the importance of multi-channel distribution; and
The Case Solution Starts From page 6
, e
pl
m
Sa
n
ASSIGNMENT QUESTIONS
tio
1. Analyze the degree of competition in India’s life insurance industry by applying Porter’s five-forces
framework and evaluate the scope for coopetition.
2. Position life insurance organizations on the emerging themes of life insurance to assess which
lu
organization type is best positioned for future changes.
3. Analyze the future readiness of insurance organizations in line with the emerging themes of insurance.
So
4. Analyze how the changing environmental factors favour the different organization types.
5. Analyze the factors that can fuel the growth of the insurtech sector in India.
6. Analyze the importance of multi-channel distribution and which organization type (public, private,
or insurtech) has best taken advantage of it.
The Case Solution Starts From page 6
,ANALYSIS
1. Analyze the degree of competition in India's life insurance industry by applying Porter's five-
forces framework and evaluate the scope for coopetition.
Competitive Forces in the Insurance Market
1. Threat of new entrants:
Life Insurance Corporation of India (LIC). LIC has a strong presence and reputation with a large network
of branches and agents, making it difficult for new entrants to establish a similar nationwide reach. The
trust and brand loyalty LIC has built over decades act as significant barriers to new entrants.3
Private life insurance companies. Private insurers have managed to capture a substantial market
share but still face challenges in competing with LIC’s extensive network. The high capital
requirements and regulatory hurdles act as barriers to new entrants.4
Insurtech companies. Insurtech start-ups can enter the market with innovative digital solutions, but may
face challenges in gaining customer trust and building a distribution network comparable to LIC’s.5
e
2. Bargaining power of suppliers:
pl
m
Sa
n
tio
lu
So
The Case Solution Starts From page 6
, e
pl
m
5. Analyze the factors that can fuel the growth of the insurtech sector in India.
Sa
Insurtech is a growing sector in India, with numerous factors fuelling its growth, including:
Rising internet and smartphone penetration. India currently has over 900 million internet users and
over 600 million smartphone users. This growing digital population is a key driver of insurtech
n
growth, as it allows insurtech companies to reach customers directly and offer them convenient and
affordable insurance products and services.10
tio
Customer centricity. Insurtech improves customer experience in numerous ways, including: making
it easier for customers to purchase insurance products and services; providing customers with more
personalized and tailored insurance coverage; simplifying the claims process; and offering
lu
customers more convenient and accessible ways to interact with their insurance providers. Insurtech
is moving toward a more customer-centric insurance industry.11
Focus on customer experience. Insurtech companies are focused on providing a superior customer
So
The Case Solution Starts From page 6
, EXHIBIT -1: POSITIONING OF LIFE INSURANCE ORGANIZATIONS IN LINE WITH THE
EMERGING THEMES OF INSURANCE
Evolving themes Positioning
Life Insurance
Private life insurance
Corporation of India Insurtech companies
companies
(LIC)
Digitalization Moderate
Customer centricity Moderate
Personalization Limited
Ecosystem Limited
e
Embedded insurance
pl
m
Sa
n
tio
lu
So
The Case Solution Starts From page 6
