HDFC and Standard Life first came together for a possible joint venture, to enter the life Insurance market, in January 1995. It was clear from the outset that both companies shared similar values and beliefs and a strong relationship quickly formed. In October 1995, the companies signed a 3-year joint venture agreement. STRENGTH
1.Domestic image of HDFC supported by Prudential’s international image is strength of the company. 2.Strong and well spread network of qualified intermediaries and sales person. 3.Strong capital and reserve base.
4.The company provides customer service of the highest order. 5.Huge basket of product range which are suitable to all age and income groups. 6.Large pool of technically skilled manpower with in depth knowledge and understanding of the market. 7.The company also provides innovative products to cater to different needs of different customers. WEAKNESS
1.Heavy management expenses and administrative costs.
2.Low customer confidence on the private players.
3.Vertical hierarchical reporting structure with many designations and cadres leading to power politics at all levels without any exception. 4.Poor retention percentage of tied up agents.
1.Insurable population –According to ING only 10% of the population is insured, which represents around 30% of the insurable population. This suggests more than 300m people, with the potential to buy insurance, remain uninsured. 2.There will be inflow of managerial and financial expertise from the world’s leading insurance markets. Further the burden of educating consumers will also be shared among many players. 3.International companies will help in building world class expertise in local market by introducing the best global practices. 4.Insurance liberalization in India is expected to result in a wider choice of major commercial insurance covers, such as fire, export credit, and...