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SWOT ANALYSIS OF GENERAL INSURANCE

CORPORATION OF INDIA USING PORTERS MATRIXMODEL AND BCG MATRIX MODEL

PRESENTED BY:

SILVEE KAMBOJ(10DF006)

SHASHANK TIWARI(10DF007)

SOVIK GHOSH(10DF008)

DHIRAJ MITRA (10DF009)

PURNIMA SAHA

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INTRODUCTION

The general insurance industry in India was nationalizedand a government company known as General InsuranceCorporation of India (GIC) was formed by the CentralGovernment in India. Apart from India, the industry is presentlyoperating in 17 countries directly through branches or agencies

and in 14 countries through subsidiary and associate companies.

Classification

1. FIRE INSURANCE2. MARINE INSURANCE

3. MISCELLANEOUS

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INSURANCE COMPANIES UNDER GIC OFINDIAAt present there are 14 non- life insurance companies in India.

Bajaj Allianz General Insurance Company Limited ICICI Lombard General Insurance Company Limited

IFFCO Tokio General Insurance Company Limited

National Insurance Company Limited.

New India Assurance Company Limited

The Oriental Insurance Company Limited

Reliance General Insurance Company Limited

Royal Sundaram Alliance Insurance Company Limited

United India Insurance Company Limited

Tata AIG Life Insurance Company Limited Cholamandalam General

Insurance Company Limited

HDFC-Chubb General Insurance Company Limited

Export Credit Guarantee Corporation Limited

Agriculture Insurance Company of India Limited

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The first non-life insurance company to set up shop in India was the Triton InsuranceCompany of Calcutta.

1. In 1907, the Indian Mercantile Insurance ltd was the first Indian Company that startedits operation.

2. The New India Assurance Company was incorporated in 1919.

3. In 1972, the non-life insurance business in India was nationalized with effect from 1stJanuary 1973.

General Insurance Corporation of India (GIC) was formed as a singleholding company with four sub Companies:

1. The National Insurance Co. Ltd2. The Oriental insurance Co. Ltd

3. The United India Insurance Co. Ltd4. The New India Assurance Co. Ltd

HISTORY OF GIC

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GROWTH OF GIC The first quarter results of non-life or general insurance

companies are out and New India Assurance is the highestgrosser among all insurers. For the period April to Junethis year, New India Assurance Company collected Rs2316.12 crore with a growth rate of 15.97% as compared

to previous year. Among private players, ICICI Lombard has the highest

collections of Rs 1261.65 crore in the first quarter with agrowth rate of 17.81% over that in the previous year. BajajAllianz General Insurance is next in line after ICICILombard, with Q1 collections of 795.81 crore.

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Vision

to be a leading global reinsurance & risk solution provider.

mission

To achieve the vision by

Building long-term mutually beneficial relationship withbusiness partners.

Practicing fair business ethics and values.

Applying start of art technology, processes includingenterprise risk management and innovative solution.

Developing and retaining highly innovated professional

term of employees.Enhancing profitability and financial strength befitting the

global position.

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Contd.

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FINANCIAL FACTS Large investment base of Rs 17,000 crore

Profit of Rs 2,285 crore

Profit of Rs 1,256 crore after tax

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as promo e e o ow ngcompanies/institutions:

GIC Mutual Fund

GIC Housing Finance GIC also has got a joint venture firm in Kenya,

along with LIC:

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STRENGTHS Wide experience in areas of general insurance

Large network of associates and agents in the entire

country

It has 4,200 offices in every nook and corner of India

Representatives in each district of the country 85,000 employees

Offices in 30 countries

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WEAKNESSES

The drawback of the company lies in thesettlement procedure.

A limited number of people inhabiting inSmalltown.

The struggle to stay ahead on the technologicaladoption curve in a small, rural community.

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OPPURTUNITIES It should use the Internet for faster access to their

customers

Increased sales through an expansion of thecurrent service offerings.

Lay stress on comprehensive personal selling

Advertise in a catchy language

Increase the product portfolio, in line with

international products.

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THREATS The moral of its people is not positive towards the

company.

The expenses of the company is little bit high,ascompared to the other country.

A significant slump in the economy that will likelyhave a correlated effect on the industry.

A single of series of huge, unexpected, traumatic

events that put significant strain on the financialhealth of the insurance industry as a whole.

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PORTERS MODEL Barriers to entry

Time and cost of entry

Knowledge

Cost advantage Technology

Threat of substitutes

Substitute performance

Cost of switching

Buyers willingness

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Contd. Bargaining power of buyers

Price sensitivity

How well the product is differentiated

Customers loyalty Buyers information

Bargaining power of suppliers

Number of potential suppliers

Position of supplier

Switching cost

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Rivalry among existing players

Growth of the industry

How well a rival diversified Is one player very dominant or all equal in

strength/ size

Note :Rivalry is the fifth factor in the 5 forces model

but probably the one with the most attention.

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BCG GROWTH-SHARE MATRIX

BCG matrix is developed on the basis of two factors

Relative market share

Business growth rate.

Star

Question mark

(Problem child)

Cash Cow Dog

High

Low

BusinessGrow

th

Rate

High Low

Relative Market

Share

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earned

premium

business growth

rate(%) market share product type

2009-2010 2008-2009

fire 2361.1 1913 23.4551634 1st star

motor 1969.5 2405 -18.093048 2nd cashcow

aviation 481.31 404 19.2453485 3rd star

engineering 592.25 559 5.88182712 4th

other insurance 1939.8 1846 5.09822619 5th

marine cargo 302.16 314 -3.8411355 6th dog

marine hull 417.4 352 18.7144482 7th problem child

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THANK YOU