Product details

This is the second of a three-case series (502-073-1 to 502-075-1). This case describes the changes sweeping the Indian insurance industry (in particular, the marketing of insurance products) after the sector was opened for private players in 2000. The case examines the distribution strategies, specifically the bancassurance channel adopted by the new, private players. A brief history of the Indian insurance industry is provided, highlighting the absence of a variety of distribution channels and the important role played by individual agents in distributing insurance products in India. The case provides a detailed account of the kind of distribution channels available in the insurance market and the new methods of distribution being adopted by various players. The case also discusses the changes being made by Life Insurance Corporation of India (LIC) to remain competitive, and examines the implications of the industry-wide changes in distribution practices on the insurance business. The case is designed to enable students to: (1) understand the functioning of the Indian insurance industry before the entry of private players as well as after the sector was opened up; (2) discuss LIC''s stranglehold on the market and the reasons for its total reliance on the agency approach for selling its products; (3) understand the various channels of distribution in the industry and study their distinguishing characteristics, potential and implications; (4) examine the bancassurance channel of distribution, the various players involved, and the advantages and disadvantages of the same; and (5) discuss the future trends in the distribution of insurance products in India and their impact on the insurance industry. The case is targeted at MBA/PGDBA students, and is intended to be a part of the marketing curriculum.