Life Insurance Company Management and Strategy
This domain tests how life insurers set strategy, organise distribution and manage performance within regulation and customer expectations.
Strategic levers
Strategy covers product mix, distribution (agency, bancassurance, brokers, direct and digital), expense efficiency, retention, customer service, technology and capital allocation. Insurers must balance new-business growth with solvency and profitability. Governance involves the Board, CEO, appointed actuary, chief risk officer and compliance, with clear accountability. Regulatory themes include 'Insurance for All by 2047', conduct, disclosure and IFRS 17/Ind AS reporting. Competitive analysis uses SWOT, value-chain and five-forces thinking, but must be linked to measurable outcomes.
Worked example
A company compares two distribution options. Bancassurance generates ₹100 crore of new premium at a 12% acquisition cost, while agency generates ₹60 crore at 20%. Bancassurance looks cheaper, but concentration risk and customer-ownership issues may raise future costs. The strategic choice depends on persistency, margin and capital, not acquisition cost alone.
Traps
Treating strategy as a list of goals without trade-offs; ignoring distribution concentration; pursuing premium growth that consumes capital; confusing product features with customer value; overlooking conduct and reputational risk.