A comparative analysis study between LIC and HDFC life insurers (2023)

resume

The insurance sector in India and the privatization of the insurance sector are the subject of this study. LIC had a monopoly on the insurance sector until the year 2000. When insurance was privatized it became more competitive. The insurance industry landscape has changed since private players entered the market. In terms of quality of service, customer satisfaction, awareness, customer preference, and overall operations, my research helps compare LIC to new private life insurance companies. It reflects the vision that the client has of the company. My research is aimed at gaining a better understanding of the insurance industry in India and uncovering competition issues. In India, the insurance industry is quite small, covering only about 3% of the population. Also, the increase in FDI from 26% to 49% means that India's insurance industry will grow, but it will face stiff competition from the rest of the world, particularly from Asian countries. Therefore, a distinction will probably be made between public and private insurance companies. As a result, this study attempts to compare private and public companies in the Indian insurance industry based on insurance education, premiums and performance evaluation.

Introduction

UE.INTRODUCTION

The insurance business is defined as insuring the economic value of assets. Everything good has a monetary value. The asset would be created as a result of the owner's efforts. The asset is useful to the owner because he expects others to benefit from it. The benefit may be in the form of cash or otherwise. It is advantageous in that it satisfies a number of your requirements. In the case of a factory or a cow, the goods produced are sold and income is generated. It provides comfort and convenience in transportation in the case of a car. No money comes in right away.

A. The importance of insurance

Protection benefits society by allowing singularities to share entanglements seen by multiple people. However, it also serves other important productive and cultural capacities. Since the protection is requested and appropriate, banks can grant credit with the exception that the counterparty of the credit (goods that can be taken in installments in case of late advance payment) is liquidated against damages. This widened credit gap helps people buy homes and transportation. Protection also provides the capital networks need to quickly rebuild and financially recover from catastrophic events such as hurricanes or tropical storms. Protection itself has become a major productive force in most extreme industrialized nations. Businesses buy protection to protect their employees from business-related injuries and medical problems. Because it makes business activities safer, protection encourages companies to make business tasks safer, and protection encourages organizations to make productive arrangements that benefit the countries' agriculture. Also, many people work for insurance agencies and related organizations. In 1996, more than 2.4 million people worked in the internal protection services. also Canada. Protection such as speculation that gives more pieces in terms of returns, risk coverage, and additional lagniapes are generally not protection products that are positive bones. The ability to purchase Protection Packs inspires certain people to try to cause harm or misfortune. No obligation to obtain protective services, through representation.

B. The insurance industry today

Since the 1970s, the security industry has grown dramatically and has undergone major changes. The employment, wealth, and administrations of formerly distinct organizations have darkened as a result of the emancipation of money-related management companies such as security, banking, and stock exchanges. For example, residents of the US state of California voted in 1988 to allow state banks to offer insurance. In Canada, organizations will soon be able to offer insurance.

Design innovations have also traditionally allowed specific financial firms to keep up with developments in other organizations and to target some of the same clients. Some insurance companies now offer business records and home loans. Life verification groups already exist in the United States. The boards sell more benefit plans and other features than the typical life affirmation. Insurance providers were able to tailor contracts to the needs of individual consumers, as advances in design gave them the flexibility to access and act on data quickly. However, as tactics have become more complex, some aspects of finding and selling protection have become more difficult. Additionally, advances in terrestrial and weather technology may change the way home safety network providers calculate accident risks. For example, as researchers improve their ability to predict extreme weather events like storms and earth-moving forces like earthquakes, alternative plans can transform the way they insure against such disasters.

C. Purpose of the study

1. Compare the performance of LIC and HDFC in each category (total premium, total revenue, and total number of policies).
2. Determine the growth of LIC and HDFC insurers in each category (number of branches, first price, revenue growth, number of policies, market share value).
3. Learn more about claims management for LIC and HDFC life insurers.

D. Need for study

The aim of the study was to determine the share of LIC and HDFC insurance in India. It is useful for people working in the insurance industry and research workers working in the Indian insurance industry.

E. Scope of the study

1. Framework of supply sources and insurance products and their premium modalities.
2. Find out about the level of claims processing by LIC and HDFC insurers.
3. Find out the insurance premium in LIC and HDFC insurers.

F. Research gap and problem statement

The previous review for research purposes was to compare the performance of LIC and HDFC insurers for their purpose. The study is based solely on secondary data. Secondary data was collected from the website and journal articles.

G. Study restrictions

1. The study was limited to a two-month period before demonetization, from October 23 to November 8, 2016, and a two-month period after demonetization, from November 9 to November 30, 2016.
2. A limitation of the secondary data used in the study can be seen as a drawback of the study.
3. My lack of experience: Due to my lack of experience, there is a chance that I will make mistakes.

H. Research Methodology

Understand the performance of LIC and HDFC companies. This study is based on secondary data sources,

Secondary data was collected through the companies' official website, IRDA, magazines and books.

?????? II. LITERATURE REVIEW

Sumit (2017) used seven criteria to analyze the service delivery of life-affirming organizations in India. Factors included net premium, investment payout, endorsement payout, and earnings yield, as well as pooled fee, churn rate, and post-charge benefit. The significance of the utility change for organized safety net providers was tested using ANOVA. The research found that among private insurance agencies, the average net fee for the ICICI supervisory measure was the highest in the last 5 years. The best risk-reward CAGR was tracked using the good ICICI measure.

Krishna (2015) conducted a similar survey among private and government insurance agencies in India. For a specific segment of the entire industry, new business increased, late inquiries increased, and a full insurance payout was considered. LIC is overwhelming in terms of all limits. The evaluation concluded that the insurer must guarantee high-quality products at a low price, and companies can reduce the value of the product by lowering the price. Their long-term profitability depends on how well they perform in utility, utility, productivity, and repair quality.

Dr. Parmasivan (2015) conducted a similar survey of public and private insurance agencies. The current portion as well as the percentage of the debt value are determined to determine the settlement portion of the living money foreclosure. The review shows that LIC continues to flood the field. Compared to LIC, private insurers used new business channels to move forward. Selling more unit-linked plans allows private security network providers to capture a larger share of the overall LIC market. Individual safety net providers outperformed LIC in terms of solvability index and causality index. Compared to non-public sheriffs, death claims have been better adjusted for a good LIC level.

the doctor Vikas Gairola (2016) considers open and individual insurers. The study examines public and private life-affirming organizations in terms of latest practices, overall award payout, and overall industry participation. The analysis shows that the data protection backup plans have made constant efforts to improve their disclosure and have had some impact on the LIC. To combat and compete with this case, LIC has introduced innovative and attractive protection products, as well as efforts to improve customer relationships across industries and effective marketing. Despite the fact that India's population is huge, the market for life-affirming products remains untapped.

??????III.INDUSTRY PROFILE

The introduction

With the largest population and therefore a large untapped market, insurance in India presents a huge opportunity. Today it is a business that grows at a rate of 15-20% per year. Along with banking services, it contributes about 7% of the country's GDP. Despite all this expansion, insurance penetration data in the country is surprisingly low. Nearly 80% of the Indian population is uninsured and therefore uninsured. This is usually a sign that the Indian insurance market has great growth potential. As a result of this tremendous expansion, the insurance business was regulated and the government established the "Malhotra Committee" in 1993 to study various elements of the industry. Since its deregulation, the insurance business has never looked back and is now among the most competitive and exploratory sectors in India. The current focus is on the support of private players and therefore on a greater use of the new distribution. In the long term, the use of new sales techniques and consequently computer tools has broadened the reach of the industry.

B. Insurance companies

The buffer zone for individual support was established four years ago. Private players have been moving dynamically in the changing environment for a long time. The coverage market has undergone dynamic changes, including the emergence of a significant number of safety net providers, both life and non-life. Much of the private insurer engineered the adventure by bringing together unknown actors from around the world. There is pressure on the government at home and abroad to raise the foreign direct investment (FDI) limit from 26% to 49%, which could help travel partners declare development assets. Within the performance area there are open doors where guidelines are set. If you are dealing with Indians over the age of 60, membership rates are available. With other players reluctant to join, the IRDA has given an independent health organization the necessary authorization to operate in the country. The protected area has a lot of room to grow and as it grows and more players enter, item progression and upgrades will increase. The long-term expansion of health data collection will also allow players to create new games.

???????4.COMPANY PROFILE

A. Introduction of Life Insurance Corporation (LIC)

On 1 September 1956, LIC India was formed through the nationalization of 245 Indian and international companies. It was founded 52 years ago to protect people from a variety of threats they face every day. The forerunners of the movement envisioned a substance that would provide financial disaster relief to Native Americans, particularly those living in large provinces, while channeling reserve funds to improve the country. It is the largest life insurer in India and the largest investor. It is headquartered in Mumbai and is fully controlled by the Government of India. LIC now has 2,048 fully operational branches, 100 branch offices, seven zone offices and one corporate headquarters. LIC's wide area network connects all of the company's offices through a metropolitan area network that spans 100 offices. According to the LIC, certain specialized banks and cooperatives are only authorized to offer online premium assortment offices in certain regions of the city. LIC's ECS and ATM premium rate office increases the convenience of its customers. Information centers have been established in Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities, in addition to online posts and IVRS. LIC has deployed its SATÉLITE SAMPARK workstations with the aim of facilitating access to its policyholders. Digital recordings of satellite jobs will work with any duty station and other accommodations in the future.

In many aspects of the auxiliary security business, LIC has pushed a number of boundaries and set impressive standards of execution. Thought processes similar to those that drove our ancestors to make protection a reality for this country compel us at LIC to carry this message of safety, to turn on security lights in as many homes as possible under the circumstances, and to help people to guarantee security to create their families.

?????? v.DATA ANALYSIS AND INTERPRETATION

Table #1: Table showing the comparison of the total premium between LIC and HDFC

(Rs em crores)

Those: https://www.irdai.gov.in/ADMINCMS.

• Interpretation: It is very important in the insurance industry. People are drawn to companies that address their complaints. In claims management, we see that LIC HDFC is far ahead. In the past five years, LIC has handled 100% of cases, while HDFC has resolved 97% of cases in 2018-19. This shows that LIC cares about its image and works hard to resolve people's complaints as quickly as possible.

🇧🇷 SAW. CONCLUSIONS

This investigation was carried out to find the "COMPARATIVE ANALYSIS BETWEEN LIFE INSURANCE LIC AND HDFC", at the end of this investigation we can say the following:

1. LIC has a higher income than HDFC insurer. LIC's investment income was Rs 559.6 billion last year, much more than HDFC's total income. Based on this, we can estimate the size of the LIC.
2. There is a significant difference in the total number of insurance issued by LIC and HDFC. HDFC is looking to purchase additional policies from LIC, a well-known player in the insurance industry.
3. The number of HDFC insurance classes is growing. Compared to 2014-15, LIC has more branches, but when it comes to 2018-19, HDFC has more branches.
4. The oldest player in the existing insurance industry, LIC, has the largest market share at 66.42 percent, up from 73.05 percent five years ago.
5. LIC handles complaint handling well compared to HDFC. LIC resolved the complaint 100% while HDFC resolved about 94%.

??????VII.SUGGESTIONS

1. LIC as a company has increased its profits due to its absolute dedication and process reforms, but a timely decision must be made to further accelerate its growth.
2. HDFC is a fast growing company in the banking and insurance industry, representing a growing market due to its standardized yet competitive processes.
3. HDFC has shown that it is focused on expanding where LIC needs to close and also technology upgrades.
4. Accuracy was key for LIC management, but HDFC is thought to perform better on this criterion, but should be better than LIC.

Conclution

Insurance is very important in everyday life. Risks are everywhere and insurance is essential to mitigate them. However, life insurance methods and procedures need to be updated. Over time, people's demands and requirements change, which requires the development of new items to meet these needs. Any personal financial plan must include insurance. The type of insurance you purchase and the amount of coverage you receive are determined by your own financial and family situation and must be carefully considered. Therefore, insurance is a necessary financial tool that every individual must use to cover risks. of her life and protect him against risks such as life, property, civil liability and disability, among others.

Copyright ©

Copyright © 2022 Sai Kalyan, Shiva Priya. This is an open access article published in theCreative Commons attribution license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.