Employee Grievance Handling in Company
CHAPTER 1
INTRODUCTION
1.1 PROFILE OF INSURANCE INDUSTRY
1.1.1 The life insurance scenario in India
Since 1956, the nationalization of the insurance industry, the state run Life Insurance Corporation on India (LIC) has held the monopoly in that country’s life insurance sector General Insurance Corporation of India (GIC), with its four subsidiaries, was its counterpart in the causality sector. Over time, taking advantage of its monopoly and virtual prerogative in establishing premiums, LIC has evolved into a monolith. With around 600,000agents in the every nook and corner of the vast country, it has created an enviable brand name, particularly among the rural population of the country. it has around $40 billion as its fund and is a strong player in the financial sector. However, on the qualitative side, it has very little to take pride in. And there lies the potential for foreign players to challenge this behemoth.
As is typical with monopolies, the premium rates charged by LIC are among then highest in the world, and its track record in customer service can, at best, be called shabby. With a huge unionized, rigid work force mostly in the clerical category, LIC runs the risk of high fixed cost, which boasting full-scale automation of its operation, the truth is that its technology is outdated. The new players, with the state-of-the-art technology under their belt, will be in advantageous position.80% of LIC’s business is procured by 20% of ill trained agent force. The foreign player, with domestic partner’s strong brand value, can test the unconvenential distribution channels like brokers, the internet, the banking distribution system etc.
1.1.2 Insurance industry in India
India at a glance
Population : 1 Billion
Economy : 5th largest in the world in terms of
Purchasing Power Parity
GDP Growth Rate : Over 6% per year on an average
Savings Rate : Around 26% of GDP
Estimated Middle Class
INTRODUCTION
1.1 PROFILE OF INSURANCE INDUSTRY
1.1.1 The life insurance scenario in India
Since 1956, the nationalization of the insurance industry, the state run Life Insurance Corporation on India (LIC) has held the monopoly in that country’s life insurance sector General Insurance Corporation of India (GIC), with its four subsidiaries, was its counterpart in the causality sector. Over time, taking advantage of its monopoly and virtual prerogative in establishing premiums, LIC has evolved into a monolith. With around 600,000agents in the every nook and corner of the vast country, it has created an enviable brand name, particularly among the rural population of the country. it has around $40 billion as its fund and is a strong player in the financial sector. However, on the qualitative side, it has very little to take pride in. And there lies the potential for foreign players to challenge this behemoth.
As is typical with monopolies, the premium rates charged by LIC are among then highest in the world, and its track record in customer service can, at best, be called shabby. With a huge unionized, rigid work force mostly in the clerical category, LIC runs the risk of high fixed cost, which boasting full-scale automation of its operation, the truth is that its technology is outdated. The new players, with the state-of-the-art technology under their belt, will be in advantageous position.80% of LIC’s business is procured by 20% of ill trained agent force. The foreign player, with domestic partner’s strong brand value, can test the unconvenential distribution channels like brokers, the internet, the banking distribution system etc.
1.1.2 Insurance industry in India
India at a glance
Population : 1 Billion
Economy : 5th largest in the world in terms of
Purchasing Power Parity
GDP Growth Rate : Over 6% per year on an average
Savings Rate : Around 26% of GDP
Estimated Middle Class