Life Insurance Corporation - Restructuring for Growth

Details

Case Code : CLSM016
Publication date : 2005
Subject : Services Marketing
Industry : Insurance
Length : 04 Pages
Price : Rs. 100

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Key words:

Life Insurance Corporation (LIC), Booz, Allen & Hamilton, Marketing Strength, Training and Development, Agency Network, Customer Relationship Management (CRM), Wide Area Network (WAN), Interactive Voice Responsive system (IVRS), Service Delivery Processes, Brand Advertising Strategy, Taylor Nelson Sofres, Most Trusted Service Brands, Economic Times, Mind-Share

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 

Abstract:

With the entry of private insurance players like Tata-AIG, ICICI-Prudential and Max-New York Life, LIC felt a need to revamp its business. Based on recommendations of the leading consulting company Booz, Allen & Hamilton, LIC restructured various aspects of its business. The caselet discusses LIC's measures to train and develop competent personnel. It focuses on the customer service initiatives of LIC by using technology and improving service delivery. Finally, the caselet talks about the change in LIC's branding and advertising strategy.

Issues:   » Need for training in Insurance.   » Branding of an insurance company.   » Use of technology in insurance services marketing. Introduction Till the year 2000, Life Insurance Corporation (LIC) held a monopoly in the life insurance market by virtue of being India’s only life insurance company in India. With the opening of the insurance sector to private players, LIC’s hold on the market was threatened.

institutional equity (Kotak Mahindra Capital Company) and mutual funds (Kotak Mahindra Asset Management Company), has been converted (it obtained the banking license in February 2003 ) into Kotak Mahindra Bank (KMB).

It launched its first branch at Nariman Point in Mumbai in March 2003. KMB has tried to differentiate its services in all aspects, starting from the design of the bank logo to the design of its products and services...

Questions for Discussion:

1. The changing perception about a company among customers is a challenging task for any service provider. To what extent has LIC succeeded on that front?

2. What kind of branding strategy should LIC adopt, given its increasing product mix and the aggressive brand building measures of private insurers?