Abstract

The case is the second of a three-part series on 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 before 2000 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 LIC to remain competitive, and examines the implications of the industry-wide changes in distribution practices on the insurance business.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• LIC’s stranglehold on the life insurance market, insurance distribution channels.

Keywords

Indian insurance, sector, private players, 2000, distribution strategies, bancassurance, channel, Indian insurance industry, distribution channels, individual agents, detailed accounts.