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India’s LIC emerges as the 3rd strongest and 10th most valuable global insurance brand in 2021

Apr 30th, 2021 8:32 pm | By | Category: LATEST NEWS

File photo of LIC top Officials in a product launch


(THE NEWSMAN OF INDIA.COM)
According to the latest report released by Brand Finance the total value of the world’s top 100 most valuable insurance brands has declined by 6 per cent, decreasing from $462.4 billion in 2020 to $433.0 billion in 2021 12 Chinese brands in ranking account for 30% of total brand value as brands leverage significant volume premium of Chinese market US brands buck negative sector trends – 26 brands featured record 14% cumulative brand value growth year-on-year.

Even as world’s top insurance brands have lost nearly $30 billion in brand value,since the onslaught of Covid-19 Pandemic in 2020, India’s state owned life insurance behemoth Life Insurance Corporation(LIC), for the first time, has emerged as the third strongest insurance brand as well as the 10th most valuable insurance brand globally, according to the Brand Finance Insurance 100 2021 ranking, prepared by London based Brand Finance, that tracks brand value of multinational companies across the geographies and sectors.

LIC’s brand value at $ 8.6 billion, as 10th most valuable insurance brand, has gone up by 6.8 per cent helping the insurer to improve its ranking from 13th to 10th in this segment, which is topped by Chinese Ping An, with a brand value of $44,8 billion.

“We have taken LIC’s performance upto Dec 31,2020 for our global ranking exercise,” said a spokesperson of Brand Finance.

According to the latest report released by Brand Finance, on Wednesday, the total value of the world’s top 100 most valuable insurance brands has declined by 6 per cent, falling from $462.4 billion in 2020 to $433.0 billion in 2021.

Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors, explains Brand Finance.

The company further defines brand value as the present value of earnings specifically related to brand reputation. Organisations own and control these earnings by owning trademark rights..

Brand Finance always incorporates a review of what users of brands actually pay for the use of brands in the form of brand royalty agreements, which are found in more or less every sector in the world.This is known as the “Royalty Relief” methodology and is by far the most widely used approach for brand valuations since it is grounded in reality, said the company.

“It is the basis for our public rankings but we always augment it with a real understanding of people’s perceptions and their effects on demand – from our database of market research on over 3000 brands in over 30 markets.,” said Brand Finance.

In 10 most valuable insurance brands,five are Chinese insurers( China Life with a $ 22 billion valuation at 2nd, CPIC with a $ 51 billion at 5th, AIA with a $14billion valuation at 6th, PICC with a valuation of $8 billion at 9th), two are Europeans(French re/insurer AXA with a $51 billion valuation at 4th, Germany’s Allianz with a $ 20 billion valuation at 3rd, two are from US( Warren Buffet’s GEICO with a $11 billion valuation at 7th and Progressive with a $ 8 billion valuation at 8th) and one from India.

12 Chinese brands in ranking account for 30 per cent of total brand value as brands leverage significant volume premium of Chinese market

US brands have bucked negative sector trends as 26 brands featured record 14 per cent cumulative brand value growth year-on-year.

Among “top 10 strongest insurance brands”, there are only two European companies Italy’s Poste Italiane and Spanish MAPRE, which are abpove LIC.Piang An and South Korea’s Samsumg are athe 4th and 5th in their rankings in this segment.

Source : https://www.asiainsurancepost.com/ecoinvestdemography/lic-emerges-3rd-strongest-and-10th-most-valuable-insurance-global-brand-2021

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