Unit Linked Insurance Plans

Presented By:Milan Das(15001)

Shweta Tindwani(15002)Abhishek Kumar Singh(15002)

Rishu Nandeshwar(15003)Ayush Jain(15004)

Debadatta Mohanty(15006)

What is ULIP?

ULIPs are Unit Linked Insurance Plans. Also addressed as wealth insurance plans.

It is a package of financial solutions that ensure returns on your investment.

They are innovative forms of life insurance that provide safety of your insurance cover with wealth enhancement opportunities.

ULIPs also provide good cover against death.

They also serve as means for long term savings that gives maximum benefits.

In ULIP, some part of your investment is reserved in life protection cover and the rest is invested in funds like stocks and bonds.

In simple terms, ULIP are a combination package of life cover and investment.

Types of ULIPs

The different types or categories of

Ulip Plans include the following:

- Retiremen

t Plans

- Weal

th Plans

- Child Education

Plans

- Heal

th Plans

Based on life’s priority, one can invest in any of

the above ULIPs accordingly.

Best ULIPs are the ones that give you appropriate

life cover, better fund option and a long period

investment.

Existing market Share Of ULIP Products

The share of unit-linked products in total

premium declined considerably to 11.95 per

cent in 2013-14 as against 16.98 per cent in

2012-13

Growth for last five years2010-11 Rs. 1,09,036 Cr

2011-12 Rs. 69,650 Cr (decline by 36.12%)

2012-13 Rs. 48,830 Cr (decline by 29.89%)

2013-14 Rs. 37,547 Cr (decline by 23.02%)

(Source: Annual Report IRDA)

Growth projections for next five years

As we have seen the trends of previous years in last slide that the ULIP market is falling year after year with no positive sign so we can say that in future also there are very less chances for growth of ULIP market and this market will probably come more down if following the recent trends.

Major four Players of Insurance Sector

April-Sept 2013(in Cr)

April-Sept 2014(in Cr)

% change

LIC 37,906.37 35833.41 -5.5

ICICI Prudential

1,625.35 2225.18 36.9

MAX Life 902.83 1038.14 15

MET Life 297.64 306.68 3

Source: Economic Times

Major products and comparison

Insurance Company

Plans Term Maturity Age

LIC Money Plus 5-30 yr 18-75 yr

ICICI Prudential

Life Stage RP 10-75 yr 19-75 yr

Max Life Life Maker Platinum

10-58 yr 70 yr

Met Life Met Smart Premier-RP

10-30 yr 20-50 yr

Source: Economic Times

Distribution NetworkAGENCIES

BANCASSURANCE

WORKSITE MARKETING

PERSONAL DISTRIBUT

ION SYSTEMS

INTERNET

TELEMARKETING

DIRECT MAIL

CALL CENTRES

DIRECT RESPON

SE SYSTEM

S

DIRECT MARKETING

TELEMARKETING

BROKERS

CALL CENTRES

MALL ASSURANCE

TRADITIONAL TYPE

Distribution Network

GROWTH DRIVERS

Growing of the financial

industry as a whole

Growth of life and non-life

industry

Promoting innovation and

removing inefficiency

Competition and orderly

growth

Value Chain Product Management

Marketing

Sales & Distribution

Underwriting & Risk management

Policy Acquisition & Servicing

Claim Management

Finance And Accounts

Porter's 5 Forces Model

Porter's 5 Forces ModelThreat of New Entrants. The average

entrepreneur can't come along and start a large insurance company. The threat of new entrants lies within the insurance industry itself.

Power of Suppliers. The suppliers of capital might not pose a big threat, but the threat of suppliers luring away human capital does.

Power of Buyers. The individual doesn't pose much of a threat to the insurance industry. Large corporate clients have a lot more bargaining power with insurance companies

Porter's 5 Forces ModelAvailability of Substitutes. This one is pretty

straight forward, for there are plenty of substitutes in the insurance industry. Most large insurance companies offer similar suites of services.

Competitive Rivalry. The insurance industry is becoming highly competitive. The difference between one insurance company and another is usually not that great. As a result, insurance has become more like a commodity - an area in which the insurance company with the low cost structure, greater efficiency and better customer service will beat out competitors.

Sales Strategy of two major playersLICLIC has taken help of advertising agencies to

promote Brand LIC.They use creative slogans which affects customer’s

mindset and able to attract their attention.These slogans help LIC to make the customer

emotionally attached to services provided by them.They spend huge amount of money in advertising

and sales promotion to build their brand equity and identity.