1.  Market Research report  Postal Life Insurance. Market Research Report 2012.  By: IMRB International 5.0 1

2. Products and service categories Postal Life Insurance Rural Postal Life Insurance. 5.0 2

3. Study Objectives Identify Major Players and current services Market size ---volume and Revenue Share of India Post Share of competitors Customer segments 5.0 3

4. Highlights Structured Interviews were conducted in 28 states and total sample size covered in study is 2,538. CAGR is at 15.9 % between 2005 to 12 GDP contribution--- Financing, Insurance, Real Estate & Business services recorded growth of 19% in 2011-12 and has a share of 17% in real GDP. 5.0 4

5. Postal Life Insurance Global Insurance for the year 2011 was USD 4,597 billion ( 6% increase over 2010) Indian Life Insurance industry mobilized a first year premium of Rs.1,142,3 billion in 2011-12. The market share of private players reduced from 31.3% to 28.6%. Market : Around 62.3% of the eligible clientle currently donot hold a PLI Policy but instead have a LIC/other vendors in market. 5.0 5

6. Competition Scenario There were only 4 private players in 2001. Number has increase to 23 in 2012. Of the 23 private players, 21 are in joint venture with foreign partners. LIC is the only public sector company apart from India Post in the Life Insurance business. These are the two players have been in the business for the longest period of time. 5.0 6

7. Market penetration (PLI)  Customers :  Central Govt- -26%  Defense Services-29.7%  CG PSUs-20.7%  State Governments-32.5%  SG PSUs-14.4%  Local Bodies-14.2% 5.0 7

8. Market penetration Non Customers:  CG -66.5%  DS -61.5%  CGPSUs -68.6%  SG -53.8%  SGPSUs -71.3%  Local bodies -76.9% 5.0 8

9. Profile of major players CompanyIncome (in crores) F/Y-2012 Growth (CAGR) (2007-2012) LIC Of India2,87,31510.5% ICICI Prudential 14,1497.9% SBI Life 13,86434.2% HDFC standerd 10,42726.5% Bajaj Allianz 7,4055.2% Reliance Life 5,06129.9% 5.0 9

10. Market Share PLI has a market share of 21% among the addressable in the market. LIC has a market share of 66% and All other private players together have a market share of 13%. 5.0 10

11. Type of policies that customers hold from India Post Type of policies% EA 74% WLA 17% Children policy 4% Policy for PH 1% 5.0 11

12. Three main reasons indicated for not buying a policy among non-PLI policy holders were : 1.Agent /GDS/India Post Employees Non known to them, 2.Products not suited for them, 3.PO is not located close to the residence/Office. 5.0 12

13. 20% of existing Customers and 27% non India Post Life Insurance customers indicated willingness to consider India post Life insurance in the future. Even among non-PLI policy holders, safety of money and association of India Post with govt. came out as a key reason for willingness to buy from India Post. 5.0 13

14. Limitations :  PLI is open for employees all central and state govt. employees and other approved organizations.  RPLI is open for rural population of the country.  LIC is open for the overall context. 5.0 14

15. Exercise/Learning Points Discuss and arrive at key factors which might have helped LIC and other Insurance companies to gain more business. Find out the positive factors indicated by Customers of India post and non-PLI policy holders. Strategies for changing the opinion for not using India Post. 5.0 15