The seasons of indian life insurance; what do the charts tell?

1. The seasons of Indian life insurance
• How well do you know
your seasons?
• Can you use that
knowledge to run the
business operations
more profitably?
Presented by: IBEXI Met Department
( IBEXI Analytics and BI team)

2. Sure, it pours in March every year.
But do you know:
•Which month always has second-
highest sales?
•Is there a greater skew for group vs.
individuals?
•For single premium or regular
premiums?
•Has the skew changed over the last
few years?
•Are there outlier companies? What
do they tell us? • Does your guess/ intuition
•How can a company use its match the data?
seasonality index? • Check it out.

3. Which month always has the
second-highest sales?
• Options: Feb; Jan; Dec; Nov.; None of the above.

4. Which month always has the
second-highest sales?
• Options: Feb; Jan; Dec; Nov.; None of the above.
• Answer: None of the above.
– It varies from year to year! In 2006-07, it was November. In
'07-08 and '08-09, it was January. In '09-10, it was December.
In '10-11, it was August! And it was back to January in '11-12.
25%
20%
15%
10%
5%
0%
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

5. The March sales skew: is it usually
sharper for LIC or for private insurers?
• Options: LIC; Private Insurers

6. The March sales skew: is it usually
sharper for LIC or for private insurers?
• Options: LIC; Private Insurers
• Answer: Usually, and on the average, private
insurers have a sharper March skew than LIC.
30%
25%
20%
15% Private
LIC
10%
5%
0%
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Average

7. Seasonality measurements need to
take into account
• Options:
– Rate of annual growth/decline
– Regulatory changes
– Management changes
– All of the above
• Answer: All of the above

8. Seasonality index can be used for
• Options:
– Performance assessment
– Predicting future trends
– Planning for temp staff for March operations
– Understanding impact of product launches.
– Deciding when to launch advertisement campaigns.
– All of the above
• Answer: All of the above
– Performance assessment should be relative to the normal seasonal variation.
So we should set targets by season to achieve annual targets.
– Predicting future trends e.g. sales figures for the rest of the year.
– Planning for temporary increases or decreases in staff, space etc. to manage
predictable peaks e.g. additional staff for March operations support
– To eliminate it for analysis of other effects, e.g. advertisements, product
launches.
– Make operational decisions for seasons – pricing, advertisements etc.

9. Thank You
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