Swot Analysis of General Insurance Corporation of India Using Porter'S Matrix Model and BCG Matrix Model

SWOT ANALYSIS OF GENERAL INSURANCE CORPORATION OF INDIA USING PORTERS MATRIX MODEL AND BCG MATRIX MODEL
PRESENTED BY: SILVEE KAMBOJ (10DF006) SHASHANK TIWARI (10DF007) SOVIK GHOSH (10DF008) DHIRAJ MITRA (10DF009) PURNIMA SAHA
INTRODUCTION
The general insurance industry in India was nationalized and a government company known as General Insurance Corporation of India (GIC) was formed by the Central Government in India. Apart from India, the industry is presently operating in 17 countries directly through branches or agencies and in 14 countries through subsidiary and associate companies.
Classification 1. FIRE INSURANCE 2. MARINE INSURANCE 3. MISCELLANEOUS
INSURANCE COMPANIES UNDER GIC OF INDIA At present there are 14 non- life insurance companies in India.
Bajaj Allianz General Insurance Company Limited ICICI Lombard General Insurance Company Limited IFFCO Tokio General Insurance Company Limited National Insurance Company Limited.
New India Assurance Company Limited

The Oriental Insurance Company Limited Reliance General Insurance Company Limited Royal Sundaram Alliance Insurance Company Limited
United India Insurance Company Limited

Tata AIG Life Insurance Company Limited Cholamandalam General
Insurance Company Limited HDFC-Chubb General Insurance Company Limited Export Credit Guarantee Corporation Limited Agriculture Insurance Company of India Limited
HISTORY OF GIC
The first non-life insurance company to set up shop in India was the Triton Insurance Company of Calcutta.
1. 2. 3.
In 1907, the Indian Mercantile Insurance ltd was the first Indian Company that started its operation. The New India Assurance Company was incorporated in 1919. In 1972, the non-life insurance business in India was nationalized with effect from 1st January 1973. General Insurance Corporation of India (GIC) was formed as a single holding company with four sub Companies: 1. The National Insurance Co. Ltd 2. The Oriental insurance Co. Ltd 3. The United India Insurance Co. Ltd 4. The New India Assurance Co. Ltd
GROWTH OF GIC
The first quarter results of non-life or general insurance
companies are out and New India Assurance is the highest grosser among all insurers. For the period April to June this year, New India Assurance Company collected Rs 2316.12 crore with a growth rate of 15.97% as compared to previous year. Among private players, ICICI Lombard has the highest collections of Rs 1261.65 crore in the first quarter with a growth rate of 17.81% over that in the previous year. Bajaj Allianz General Insurance is next in line after ICICI Lombard, with Q1 collections of 795.81 crore.
Vision
to be a leading global reinsurance & risk solution provider.

mission To achieve the vision by Building long-term mutually beneficial relationship with
business partners. Practicing fair business ethics and values. Applying start of art technology, processes including enterprise risk management and innovative solution. Developing and retaining highly innovated professional term of employees. Enhancing profitability and financial strength befitting the global position.
Contd.
FINANCIAL FACTS
Large investment base of Rs 17,000 crore
Profit of Rs 2,285 crore

Profit of Rs 1,256 crore after tax
GIC has promoted the following companies/institutions:
GIC Mutual Fund GIC Housing Finance GIC also has got a joint venture firm in Kenya,
along with LIC:
Wide experience in areas of general insurance Large network of associates and agents in the entire
STRENGTHS
country It has 4,200 offices in every nook and corner of India Representatives in each district of the country 85,000 employees Offices in 30 countries
WEAKNESSES
The drawback of the company lies in the
settlement procedure.
A limited number of people inhabiting in
Smalltown.
The struggle to stay ahead on the technological
adoption curve in a small, rural community.
OPPURTUNITIES
It should use the Internet for faster access to their
customers Increased sales through an expansion of the current service offerings. Lay stress on comprehensive personal selling Advertise in a catchy language Increase the product portfolio, in line with international products.
THREATS
The moral of its people is not positive towards the
company. The expenses of the company is little bit high,as compared to the other country. A significant slump in the economy that will likely have a correlated effect on the industry. A single of series of huge, unexpected, traumatic events that put significant strain on the financial health of the insurance industry as a whole.
PORTERS MODEL
Barriers to entry
Time and cost of entry

Knowledge Cost advantage Technology Threat of substitutes Substitute performance Cost of switching Buyers willingness
Contd.
Bargaining power of buyers
Price sensitivity
How well the product is differentiated Customers loyalty Buyers information Bargaining power of suppliers Number of potential suppliers Position of supplier Switching cost
Rivalry among existing players
Growth of the industry

How well a rival diversified Is one player very dominant or all equal in
strength/ size Note :Rivalry is the fifth factor in the 5 forces model but probably the one with the most attention.
BCG GROWTH-SHARE MATRIX

High Business Growth Rate
Star
Cash Cow
High
Question mark (Problem child)
Dog
Low
Low
Relative Market Share
BCG matrix is developed on the basis of two factors Relative market share Business growth rate.
earned premium
business growth rate(%)
market share
product type
2009-2010 2008-2009 fire motor 2361.1 1969.5 1913 2405 23.4551634 -18.093048 1st 2nd star cashcow
aviation
481.31
404
19.2453485
3rd
star
engineering
592.25
559
5.88182712
4th
other insurance
1939.8
1846
5.09822619
5th
marine cargo
302.16
314
-3.8411355
6th
dog
marine hull
417.4
352
18.7144482
7th
problem child
THANK YOU

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SWOT ANALYSIS OF GENERAL INSURANCE CORPORATION OF INDIA USING PORTERS MATRIX MODEL AND BCG MATRIX MODEL

Classification 1. FIRE INSURANCE 2. MARINE INSURANCE 3. MISCELLANEOUS

New India Assurance Company Limited

United India Insurance Company Limited

to be a leading global reinsurance & risk solution provider.

Profit of Rs 2,285 crore

GIC has promoted the following companies/institutions:

along with LIC:

adoption curve in a small, rural community.

Time and cost of entry

Rivalry among existing players

Growth of the industry

BCG GROWTH-SHARE MATRIX

Question mark (Problem child)

Relative Market Share

business growth rate(%)

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