insurance sector in india by lekshmi narayanank
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INSURANCE For securing you from risks
By : Lekshmi Narayanan K
INTRODUCTION
Definition: Insurance is a form of risk management primarily
used to hedge against the risk of a contingent, uncertain loss.
Insurance, whether life or non-life, provides people with a reasonable degree of security and assurance that they will be protected in an event of a calamity or failure of any sort.
HOW IT WORKS ?
Economies of Scale, i.e. the insurer collects premium from a large group of people individually through a policy and invests them in many forms which brings high returns. Once an insured person claims, the benefit is provided for the deceased.
Underwriting and investingThe business model is to collect more in premium and investment income than is paid
out in losses
Profit = Earned premium + Investment income - Incurred loss - Underwriting expenses.
Insurers make money in two ways: Through underwriting, the process by which insurers select the risks to
insure and decide how much in premiums to charge for accepting those risks.
By investing the premiums they collect from insured parties.
EVOLUTION
Insurance in modern form originated in the Mediterranean during the 13th century.
Marine insurance is the oldest form of insurance followed by life insurance and fire insurance.
The history of life insurance in India dates back to 1818 when it was conceived as a means to provide for English Widows.
INDIAN EVOLUTION
Oriental life Insurance Company was the first insurer and was incorporated at Calcutta in 1818
Insurance regulation formally began in India through the passing of two acts
- Life Insurance companies Act of 1912- Provident Fund Act of 1912
By 1938 there were 176 insurance companies.
Nationalization of insurance business took place in 1956
CURRENT SCENARIO
In 1993, Malhotra Committee was formed and several Insurance Reforms were made.
Redesigned the Structure Increased Competition Regulatory body (IRDA) Investments Customer Service
KEY TERMS
Agent - Individual who sells and services insurance policies.
Annuity - An agreement by an insurer to make periodic payments.
Coverage - The scope of protection provided under an insurance policy.
Claim - A request for payment for a loss under the terms of an insurance policy
Policy - The written contract effecting insurance, or the certificate.
Premium - The price of insurance protection for a specified risk for a specified period of time.
Agricultural InsuranceCredit InsuranceProperty InsuranceMortgage InsurancePet InsuranceInterest Rate InsuranceIncome Protection
Types Of
Insurance
IMPORTANCE
Protection for dependants Savings for Old Age Encourage Savings Initiates Investments Credit worthiness Social Security Tax Benefits
LIST OF INSURANCE COMPANIES IN INDIA
Public Sector :National Insurance Co LtdNew India Assurance Co LtdOriental Insurance Co LtdUnited India Insurance Co Ltd
Private Sector
Bajaj Allianz General Insurance
Bharti AXA General Insurance
Cholamandalam MS
Future Generali India Insurance
ICICI Lombard Universal Sompo General Insurance
Royal Sundaram SBI General Insurance
Shriram General Insurance
Reliance General Insurance
Tata AIG General
HDFC ERGO
Magma HDI General Insurance
L & T General Insurance
Liberty Videocon General Insurance
IFFCO Tokio
% of Market Share
1) LIC2) ICICI3) HDFC
MARKET STATISTICS
Life Insurance Funds accounts to 15% of household Savings & may grow upto 20% in future.
Insurance Penetration in India is 2.6% of GDP compared to Korea(6.77%) & Singapore(6.38%).
India is ranked 19th position in Insurance with a growth of 19% p.a.
Non Life Insurance have lower penetration and rural people needs awareness.
620 tn rupees investment is anticipated for infrastructure development in future.
STRATEGIC POLICIES
Identification of Markets Assessment of Risks Penetration and exploitation of markets control over investment and operating
costs Finding best prospects Newer Marketing Strategies
SWOT ANALYSIS
Strengths
•Strong capital and reserve
•Technically Skilled Manpower
•Innovative product for different demography
Weakness
•High administration & management expenses
•Vertical organisational structure
•Lower Reliability on Pvt. Players
Opportunities
•Inflow of global managerial & financial expertise
•Liberalization results to wider choices
•Introduce global innovations and practises
Threats
•Cut-throat competition
•New Entrants
•customers switching to other company
CONCLUSION
Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products.
Companies also provide better policies based on customer needs and demands.
In this Competitive market companies provide better service Quality, Pricing, Advertisement and Promotional activities.
CRM is used to retain the customers and communicate with them.
By another 20 yrs 50% of population is expected to have at least one sort of an insurance.
Aviva Life Insurance Company India LimitedLife Shield
AEGON Religare Life Insurance Company Limited. Decreasing Term Plan Increasing Term Plan Level Term Plan
Birla Sun Life Insurance Co. Ltd Birla Sun Life Insurance Premium Back Term Plan Birla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan
Bharti AXA Life Insurance Company Ltd. Secure Confident
Bajaj Allianz Life Insurance Company LimitedProtector New Risk Care Term Care
Future Generali India Life Insurance Company LimitFuture Care
ING Vysya Life Insurance Company Ltd.ING Term Life Plus ING Term Life
ICICI Prudential Life Insurance Co. Ltd Life Guard Return of Premium Life Guard Regular Premium Home Assure Loan cover term insurance Life Guard Single Premium
IDBI Fortis Life Insurance Company Ltd.Home Assurance
Kotak Mahindra Old Mutual Life Insurance Limited Kotak Premium Return Plan Kotak Term / Preferred Term Plan
Life Insurance Corporation of IndiaThe Convertible Term Assurance Policy Mortgage Redemption New Bima GoldTwo Year Temporary Assurance Policy Anmol Jeevan-I Amulya Jeevan-I
Max New York Life Insurance Co. Ltd Five Yr Renewable and Convertible Plan (Non - Par) Level Term Plan
Met Life India Insurance Company Ltd.MET Suraksha - TROP MET Suraksha Met -MortgageMet-Mortgage Protector
Reliance Life Insurance Company Limited.Reliance Simple Term Plan Reliance Special Credit Guardian Plan Reliance Special Term Plan Reliance Credit Guardian Plan
Sahara India Life Insurance Co, Ltd.Sahara Kavach
Shriram Life Insurance Co. Ltd.Shri Suraksha
SBI Life Insurance Co. LtdSBI Swadhan SBI Shield
Tata AIG Life Insurance Company Limited Tata AIG Life LifePlus Tata AIG Life Raksha 10/15/20/25 Tata AIG Life Assure
HDFC Standard Life Insurance Co. Ltd Loan Cover Term Assurance Plan Term Assurance Plan Home Loan Protection Plan
List of Policies
THANK YOU
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