INSURANCE SECTOR IN INDIA

TREND amp CHALLENGES

What is insurance

The definition of insurance can be made from twopoints

Functional definition

Contractual definition

FUNCTIONAL DEFINITION

Insurance is a co-operative device to spread theloss caused by a particular risk over a number ofpersons who are exposed to it and who agree toinsure themselves against the risk

Contractual DefinitionIn the words of justice Tindall ldquoInsurance is a

contract in which a sum of money is paid to

the assured as consideration of insurerrsquos

incurring the risk of paying a large sum upon a given contingencyrdquo

Policy

bull The policy contract of insurance is known as the policy Certain exclusions or exceptions to property and casualty insurance are stated in the policy Meaning that there are certain exceptions to coverage that relieves the insurance company from paying

Indemnify

bull Compensation for harm done to one party

bull The individual who accepts the compensation is known as the insured and the person who agrees to indemnify is the insurer

Beneficiary

bull This individual is the recipient of the amount to be paid The maximum amount of compensation that can be received is known as the face value

Importance

bull Protection for dependants

bull Savings for Old Age

bull Encourage Savings

bull Initiates Investments

bull Credit worthiness

bull Social Security

bull Tax Benefits

Division of Insurance Sector

INSURANCE

GENERAL INSURANCE

FIRE INSURANCE

MARINE INSURANCE

MEDICLAIMMOTOR VEHICLE

LIFE INSURANCE

Insured Items

bull There are limitless things that you can insure in order to keep them protected but the most important ones are

YOU

YOUR FAMILY

YOUR HOUSE

YOUR AWESOME

CAR

YOUR

BOAT

1

2

3

4

5

-Insurance intended to compensate

for harm to the insured personrsquos

real property

LIFE INSURANCE

Life insurance is a written contract between the

insured and the insurer that provides for the

payment of the insured sum on the date of the

maturity of the contract or on the unfortunate

death of the insured whichever occurs earlier

GENERAL INSURANCE

bull General insurance or non-life insurance policies including automobile and homeowners policies provide payments depending on the loss from a particular financial event General insurance typically comprises any insurance that is not determined to be life insurance

What is insurance

The definition of insurance can be made from twopoints

Functional definition

Contractual definition

FUNCTIONAL DEFINITION

Insurance is a co-operative device to spread theloss caused by a particular risk over a number ofpersons who are exposed to it and who agree toinsure themselves against the risk

Contractual DefinitionIn the words of justice Tindall ldquoInsurance is a

contract in which a sum of money is paid to

the assured as consideration of insurerrsquos

incurring the risk of paying a large sum upon a given contingencyrdquo

Policy

bull The policy contract of insurance is known as the policy Certain exclusions or exceptions to property and casualty insurance are stated in the policy Meaning that there are certain exceptions to coverage that relieves the insurance company from paying

Indemnify

bull Compensation for harm done to one party

bull The individual who accepts the compensation is known as the insured and the person who agrees to indemnify is the insurer

Beneficiary

bull This individual is the recipient of the amount to be paid The maximum amount of compensation that can be received is known as the face value

Importance

bull Protection for dependants

bull Savings for Old Age

bull Encourage Savings

bull Initiates Investments

bull Credit worthiness

bull Social Security

bull Tax Benefits

Division of Insurance Sector

INSURANCE

GENERAL INSURANCE

FIRE INSURANCE

MARINE INSURANCE

MEDICLAIMMOTOR VEHICLE

LIFE INSURANCE

Insured Items

bull There are limitless things that you can insure in order to keep them protected but the most important ones are

YOU

YOUR FAMILY

YOUR HOUSE

YOUR AWESOME

CAR

YOUR

BOAT

1

2

3

4

5

-Insurance intended to compensate

for harm to the insured personrsquos

real property

LIFE INSURANCE

Life insurance is a written contract between the

insured and the insurer that provides for the

payment of the insured sum on the date of the

maturity of the contract or on the unfortunate

death of the insured whichever occurs earlier

GENERAL INSURANCE

bull General insurance or non-life insurance policies including automobile and homeowners policies provide payments depending on the loss from a particular financial event General insurance typically comprises any insurance that is not determined to be life insurance

Contractual DefinitionIn the words of justice Tindall ldquoInsurance is a

contract in which a sum of money is paid to

the assured as consideration of insurerrsquos

incurring the risk of paying a large sum upon a given contingencyrdquo

Policy

bull The policy contract of insurance is known as the policy Certain exclusions or exceptions to property and casualty insurance are stated in the policy Meaning that there are certain exceptions to coverage that relieves the insurance company from paying

Indemnify

bull Compensation for harm done to one party

bull The individual who accepts the compensation is known as the insured and the person who agrees to indemnify is the insurer

Beneficiary

bull This individual is the recipient of the amount to be paid The maximum amount of compensation that can be received is known as the face value

Importance

bull Protection for dependants

bull Savings for Old Age

bull Encourage Savings

bull Initiates Investments

bull Credit worthiness

bull Social Security

bull Tax Benefits

Division of Insurance Sector

INSURANCE

GENERAL INSURANCE

FIRE INSURANCE

MARINE INSURANCE

MEDICLAIMMOTOR VEHICLE

LIFE INSURANCE

Insured Items

bull There are limitless things that you can insure in order to keep them protected but the most important ones are

YOU

YOUR FAMILY

YOUR HOUSE

YOUR AWESOME

CAR

YOUR

BOAT

1

2

3

4

5

-Insurance intended to compensate

for harm to the insured personrsquos

real property

LIFE INSURANCE

Life insurance is a written contract between the

insured and the insurer that provides for the

payment of the insured sum on the date of the

maturity of the contract or on the unfortunate

death of the insured whichever occurs earlier

GENERAL INSURANCE

bull General insurance or non-life insurance policies including automobile and homeowners policies provide payments depending on the loss from a particular financial event General insurance typically comprises any insurance that is not determined to be life insurance

Policy

bull The policy contract of insurance is known as the policy Certain exclusions or exceptions to property and casualty insurance are stated in the policy Meaning that there are certain exceptions to coverage that relieves the insurance company from paying

Indemnify

bull Compensation for harm done to one party

bull The individual who accepts the compensation is known as the insured and the person who agrees to indemnify is the insurer

Beneficiary

bull This individual is the recipient of the amount to be paid The maximum amount of compensation that can be received is known as the face value

Importance

bull Protection for dependants

bull Savings for Old Age

bull Encourage Savings

bull Initiates Investments

bull Credit worthiness

bull Social Security

bull Tax Benefits

Division of Insurance Sector

INSURANCE

GENERAL INSURANCE

FIRE INSURANCE

MARINE INSURANCE

MEDICLAIMMOTOR VEHICLE

LIFE INSURANCE

Insured Items

bull There are limitless things that you can insure in order to keep them protected but the most important ones are

YOU

YOUR FAMILY

YOUR HOUSE

YOUR AWESOME

CAR

YOUR

BOAT

1

2

3

4

5

-Insurance intended to compensate

for harm to the insured personrsquos

real property

LIFE INSURANCE

Life insurance is a written contract between the

insured and the insurer that provides for the

payment of the insured sum on the date of the

maturity of the contract or on the unfortunate

death of the insured whichever occurs earlier

GENERAL INSURANCE

bull General insurance or non-life insurance policies including automobile and homeowners policies provide payments depending on the loss from a particular financial event General insurance typically comprises any insurance that is not determined to be life insurance

Indemnify

bull Compensation for harm done to one party

bull The individual who accepts the compensation is known as the insured and the person who agrees to indemnify is the insurer

Beneficiary

bull This individual is the recipient of the amount to be paid The maximum amount of compensation that can be received is known as the face value

Importance

bull Protection for dependants

bull Savings for Old Age

bull Encourage Savings

bull Initiates Investments

bull Credit worthiness

bull Social Security

bull Tax Benefits

Division of Insurance Sector

INSURANCE

GENERAL INSURANCE

FIRE INSURANCE

MARINE INSURANCE

MEDICLAIMMOTOR VEHICLE

LIFE INSURANCE

Insured Items

bull There are limitless things that you can insure in order to keep them protected but the most important ones are

YOU

YOUR FAMILY

YOUR HOUSE

YOUR AWESOME

CAR

YOUR

BOAT

1

2

3

4

5

-Insurance intended to compensate

for harm to the insured personrsquos

real property

LIFE INSURANCE

Life insurance is a written contract between the

insured and the insurer that provides for the

payment of the insured sum on the date of the

maturity of the contract or on the unfortunate

death of the insured whichever occurs earlier

GENERAL INSURANCE

bull General insurance or non-life insurance policies including automobile and homeowners policies provide payments depending on the loss from a particular financial event General insurance typically comprises any insurance that is not determined to be life insurance

Beneficiary

bull This individual is the recipient of the amount to be paid The maximum amount of compensation that can be received is known as the face value

Importance

bull Protection for dependants

bull Savings for Old Age

bull Encourage Savings

bull Initiates Investments

bull Credit worthiness

bull Social Security

bull Tax Benefits

Division of Insurance Sector

INSURANCE

GENERAL INSURANCE

FIRE INSURANCE

MARINE INSURANCE

MEDICLAIMMOTOR VEHICLE

LIFE INSURANCE

Insured Items

bull There are limitless things that you can insure in order to keep them protected but the most important ones are

YOU

YOUR FAMILY

YOUR HOUSE

YOUR AWESOME

CAR

YOUR

BOAT

1

2

3

4

5

-Insurance intended to compensate

for harm to the insured personrsquos

real property

LIFE INSURANCE

Life insurance is a written contract between the

insured and the insurer that provides for the

payment of the insured sum on the date of the

maturity of the contract or on the unfortunate

death of the insured whichever occurs earlier

GENERAL INSURANCE

bull General insurance or non-life insurance policies including automobile and homeowners policies provide payments depending on the loss from a particular financial event General insurance typically comprises any insurance that is not determined to be life insurance

Importance

bull Protection for dependants

bull Savings for Old Age

bull Encourage Savings

bull Initiates Investments

bull Credit worthiness

bull Social Security

bull Tax Benefits

Division of Insurance Sector

INSURANCE

GENERAL INSURANCE

FIRE INSURANCE

MARINE INSURANCE

MEDICLAIMMOTOR VEHICLE

LIFE INSURANCE

Insured Items

bull There are limitless things that you can insure in order to keep them protected but the most important ones are

YOU

YOUR FAMILY

YOUR HOUSE

YOUR AWESOME

CAR

YOUR

BOAT

1

2

3

4

5

-Insurance intended to compensate

for harm to the insured personrsquos

real property

LIFE INSURANCE

Life insurance is a written contract between the

insured and the insurer that provides for the

payment of the insured sum on the date of the

maturity of the contract or on the unfortunate

death of the insured whichever occurs earlier

GENERAL INSURANCE

bull General insurance or non-life insurance policies including automobile and homeowners policies provide payments depending on the loss from a particular financial event General insurance typically comprises any insurance that is not determined to be life insurance

Division of Insurance Sector

INSURANCE

GENERAL INSURANCE

FIRE INSURANCE

MARINE INSURANCE

MEDICLAIMMOTOR VEHICLE

LIFE INSURANCE

Insured Items

bull There are limitless things that you can insure in order to keep them protected but the most important ones are

YOU

YOUR FAMILY

YOUR HOUSE

YOUR AWESOME

CAR

YOUR

BOAT

1

2

3

4

5

-Insurance intended to compensate

for harm to the insured personrsquos

real property

LIFE INSURANCE

Life insurance is a written contract between the

insured and the insurer that provides for the

payment of the insured sum on the date of the

maturity of the contract or on the unfortunate

death of the insured whichever occurs earlier

GENERAL INSURANCE

bull General insurance or non-life insurance policies including automobile and homeowners policies provide payments depending on the loss from a particular financial event General insurance typically comprises any insurance that is not determined to be life insurance

Insured Items

bull There are limitless things that you can insure in order to keep them protected but the most important ones are

YOU

YOUR FAMILY

YOUR HOUSE

YOUR AWESOME

CAR

YOUR

BOAT

1

2

3

4

5

-Insurance intended to compensate

for harm to the insured personrsquos

real property

LIFE INSURANCE

Life insurance is a written contract between the

insured and the insurer that provides for the

payment of the insured sum on the date of the

maturity of the contract or on the unfortunate

death of the insured whichever occurs earlier

GENERAL INSURANCE

bull General insurance or non-life insurance policies including automobile and homeowners policies provide payments depending on the loss from a particular financial event General insurance typically comprises any insurance that is not determined to be life insurance

LIFE INSURANCE

Life insurance is a written contract between the

insured and the insurer that provides for the

payment of the insured sum on the date of the

maturity of the contract or on the unfortunate

death of the insured whichever occurs earlier

GENERAL INSURANCE

bull General insurance or non-life insurance policies including automobile and homeowners policies provide payments depending on the loss from a particular financial event General insurance typically comprises any insurance that is not determined to be life insurance

GENERAL INSURANCE

bull General insurance or non-life insurance policies including automobile and homeowners policies provide payments depending on the loss from a particular financial event General insurance typically comprises any insurance that is not determined to be life insurance

TYPES OF GENERAL INSURANCE

Health insurance

Business insurance

Automobile insurance

Fire insurance

bull Agricultural Insurance

bull Credit Insurance

bull Property Insurance

bull Mortgage Insurance

bull Pet Insurance

bull Interest Rate Insurance

bull Income Protection

HEALTH INSURANCE

HEALTH INSURANCE

Just like one looks to safeguard ones

wealth these policies ensure guarding the

insurers health against any calamities that

may cause long term harm to ones life and

even hamper ones earning ability for a

lifetime Some examples of this type of

policy are mediclaim policy personal

accident group accident traffic accident

etc

Business Insurance

Risks of loss of profitsbusiness goods plant and

machinery are most profound in case of business

Under this head they cover the most widely used

policies that cover a business from any loss of the

above kind Some of these policies are burglary

insurance shopkeepers insurance key-man

insurance marine insurance public liability

insurance workmen compensation insurance air

transit insurance fidelity guarantee insurance etc

Automobile Insurance

Auto Policy is required to be taken to

cover the risks that arise to the owner

vehicle and third party This includes the

Compulsory Vehicle Policy (In India by

the Motor Vehicles Act every car owner

is required to covered against Act risks)

and the Comprehensive Vehicle Policy

MARINE INSURaNCE

Marine Insurance Contract

ldquoUnder Mariner Insurance Act 1963 Marine Insurance Contract is an agreement whereby the insurer undertakes to indemnify the assured in the manner and to the extent thereby agreed

against losses incidental to Marine adventurerdquo

SCOPE OF MARINE INSURANCE HULL INSURANCE Hull Insurance involves insurance of ships

including vessel machinery

CARGO INSURANCE Goods and commodities transported by sea is the subject matter of Cargo Insurance

FIRE INSURANCE

FIRE INSURANCE

This policy is required to be taken to prevent

any loss of profits property from incidental

fire Eg fire insurance and fire

consequential loss policy

BANCASSURANCE

ldquoThere is no stronger force than an idea whose time has comerdquo

Banks amp Insurers across the World have realizedBancassurance is the distribution channel whichwould help them achieve economies of scale andboost their revenues in the 21st Century

Victor Hugo(19th Century French Novelist)

HEALTH INSURANCE

HEALTH INSURANCE

Just like one looks to safeguard ones

wealth these policies ensure guarding the

insurers health against any calamities that

may cause long term harm to ones life and

even hamper ones earning ability for a

lifetime Some examples of this type of

policy are mediclaim policy personal

accident group accident traffic accident

etc

Business Insurance

Risks of loss of profitsbusiness goods plant and

machinery are most profound in case of business

Under this head they cover the most widely used

policies that cover a business from any loss of the

above kind Some of these policies are burglary

insurance shopkeepers insurance key-man

insurance marine insurance public liability

insurance workmen compensation insurance air

transit insurance fidelity guarantee insurance etc

Automobile Insurance

Auto Policy is required to be taken to

cover the risks that arise to the owner

vehicle and third party This includes the

Compulsory Vehicle Policy (In India by

the Motor Vehicles Act every car owner

is required to covered against Act risks)

and the Comprehensive Vehicle Policy

MARINE INSURaNCE

Marine Insurance Contract

ldquoUnder Mariner Insurance Act 1963 Marine Insurance Contract is an agreement whereby the insurer undertakes to indemnify the assured in the manner and to the extent thereby agreed

against losses incidental to Marine adventurerdquo

SCOPE OF MARINE INSURANCE HULL INSURANCE Hull Insurance involves insurance of ships

including vessel machinery

CARGO INSURANCE Goods and commodities transported by sea is the subject matter of Cargo Insurance

FIRE INSURANCE

FIRE INSURANCE

This policy is required to be taken to prevent

any loss of profits property from incidental

fire Eg fire insurance and fire

consequential loss policy

BANCASSURANCE

ldquoThere is no stronger force than an idea whose time has comerdquo

Banks amp Insurers across the World have realizedBancassurance is the distribution channel whichwould help them achieve economies of scale andboost their revenues in the 21st Century

Victor Hugo(19th Century French Novelist)

HEALTH INSURANCE

Just like one looks to safeguard ones

wealth these policies ensure guarding the

insurers health against any calamities that

may cause long term harm to ones life and

even hamper ones earning ability for a

lifetime Some examples of this type of

policy are mediclaim policy personal

accident group accident traffic accident

etc

Business Insurance

Risks of loss of profitsbusiness goods plant and

machinery are most profound in case of business

Under this head they cover the most widely used

policies that cover a business from any loss of the

above kind Some of these policies are burglary

insurance shopkeepers insurance key-man

insurance marine insurance public liability

insurance workmen compensation insurance air

transit insurance fidelity guarantee insurance etc

Automobile Insurance

Auto Policy is required to be taken to

cover the risks that arise to the owner

vehicle and third party This includes the

Compulsory Vehicle Policy (In India by

the Motor Vehicles Act every car owner

is required to covered against Act risks)

and the Comprehensive Vehicle Policy

MARINE INSURaNCE

Marine Insurance Contract

ldquoUnder Mariner Insurance Act 1963 Marine Insurance Contract is an agreement whereby the insurer undertakes to indemnify the assured in the manner and to the extent thereby agreed

against losses incidental to Marine adventurerdquo

SCOPE OF MARINE INSURANCE HULL INSURANCE Hull Insurance involves insurance of ships

including vessel machinery

CARGO INSURANCE Goods and commodities transported by sea is the subject matter of Cargo Insurance

FIRE INSURANCE

FIRE INSURANCE

This policy is required to be taken to prevent

any loss of profits property from incidental

fire Eg fire insurance and fire

consequential loss policy

BANCASSURANCE

ldquoThere is no stronger force than an idea whose time has comerdquo

Banks amp Insurers across the World have realizedBancassurance is the distribution channel whichwould help them achieve economies of scale andboost their revenues in the 21st Century

Victor Hugo(19th Century French Novelist)

Business Insurance

Risks of loss of profitsbusiness goods plant and

machinery are most profound in case of business

Under this head they cover the most widely used

policies that cover a business from any loss of the

above kind Some of these policies are burglary

insurance shopkeepers insurance key-man

insurance marine insurance public liability

insurance workmen compensation insurance air

transit insurance fidelity guarantee insurance etc

Automobile Insurance

Auto Policy is required to be taken to

cover the risks that arise to the owner

vehicle and third party This includes the

Compulsory Vehicle Policy (In India by

the Motor Vehicles Act every car owner

is required to covered against Act risks)

and the Comprehensive Vehicle Policy

MARINE INSURaNCE

Marine Insurance Contract

ldquoUnder Mariner Insurance Act 1963 Marine Insurance Contract is an agreement whereby the insurer undertakes to indemnify the assured in the manner and to the extent thereby agreed

against losses incidental to Marine adventurerdquo

SCOPE OF MARINE INSURANCE HULL INSURANCE Hull Insurance involves insurance of ships

including vessel machinery

CARGO INSURANCE Goods and commodities transported by sea is the subject matter of Cargo Insurance

FIRE INSURANCE

FIRE INSURANCE

This policy is required to be taken to prevent

any loss of profits property from incidental

fire Eg fire insurance and fire

consequential loss policy

BANCASSURANCE

ldquoThere is no stronger force than an idea whose time has comerdquo

Banks amp Insurers across the World have realizedBancassurance is the distribution channel whichwould help them achieve economies of scale andboost their revenues in the 21st Century

Victor Hugo(19th Century French Novelist)

Automobile Insurance

Auto Policy is required to be taken to

cover the risks that arise to the owner

vehicle and third party This includes the

Compulsory Vehicle Policy (In India by

the Motor Vehicles Act every car owner

is required to covered against Act risks)

and the Comprehensive Vehicle Policy

MARINE INSURaNCE

Marine Insurance Contract

ldquoUnder Mariner Insurance Act 1963 Marine Insurance Contract is an agreement whereby the insurer undertakes to indemnify the assured in the manner and to the extent thereby agreed

against losses incidental to Marine adventurerdquo

SCOPE OF MARINE INSURANCE HULL INSURANCE Hull Insurance involves insurance of ships

including vessel machinery

CARGO INSURANCE Goods and commodities transported by sea is the subject matter of Cargo Insurance

FIRE INSURANCE

FIRE INSURANCE

This policy is required to be taken to prevent

any loss of profits property from incidental

fire Eg fire insurance and fire

consequential loss policy

BANCASSURANCE

ldquoThere is no stronger force than an idea whose time has comerdquo

Banks amp Insurers across the World have realizedBancassurance is the distribution channel whichwould help them achieve economies of scale andboost their revenues in the 21st Century

Victor Hugo(19th Century French Novelist)

MARINE INSURaNCE

Marine Insurance Contract

ldquoUnder Mariner Insurance Act 1963 Marine Insurance Contract is an agreement whereby the insurer undertakes to indemnify the assured in the manner and to the extent thereby agreed

against losses incidental to Marine adventurerdquo

SCOPE OF MARINE INSURANCE HULL INSURANCE Hull Insurance involves insurance of ships

including vessel machinery

CARGO INSURANCE Goods and commodities transported by sea is the subject matter of Cargo Insurance

FIRE INSURANCE

FIRE INSURANCE

This policy is required to be taken to prevent

any loss of profits property from incidental

fire Eg fire insurance and fire

consequential loss policy

BANCASSURANCE

ldquoThere is no stronger force than an idea whose time has comerdquo

Banks amp Insurers across the World have realizedBancassurance is the distribution channel whichwould help them achieve economies of scale andboost their revenues in the 21st Century

Victor Hugo(19th Century French Novelist)

Marine Insurance Contract

ldquoUnder Mariner Insurance Act 1963 Marine Insurance Contract is an agreement whereby the insurer undertakes to indemnify the assured in the manner and to the extent thereby agreed

against losses incidental to Marine adventurerdquo

SCOPE OF MARINE INSURANCE HULL INSURANCE Hull Insurance involves insurance of ships

including vessel machinery

CARGO INSURANCE Goods and commodities transported by sea is the subject matter of Cargo Insurance

FIRE INSURANCE

FIRE INSURANCE

This policy is required to be taken to prevent

any loss of profits property from incidental

fire Eg fire insurance and fire

consequential loss policy

BANCASSURANCE

ldquoThere is no stronger force than an idea whose time has comerdquo

Banks amp Insurers across the World have realizedBancassurance is the distribution channel whichwould help them achieve economies of scale andboost their revenues in the 21st Century

Victor Hugo(19th Century French Novelist)

SCOPE OF MARINE INSURANCE HULL INSURANCE Hull Insurance involves insurance of ships

including vessel machinery

CARGO INSURANCE Goods and commodities transported by sea is the subject matter of Cargo Insurance

FIRE INSURANCE

FIRE INSURANCE

This policy is required to be taken to prevent

any loss of profits property from incidental

fire Eg fire insurance and fire

consequential loss policy

BANCASSURANCE

ldquoThere is no stronger force than an idea whose time has comerdquo

Banks amp Insurers across the World have realizedBancassurance is the distribution channel whichwould help them achieve economies of scale andboost their revenues in the 21st Century

Victor Hugo(19th Century French Novelist)

FIRE INSURANCE

FIRE INSURANCE

This policy is required to be taken to prevent

any loss of profits property from incidental

fire Eg fire insurance and fire

consequential loss policy

BANCASSURANCE

ldquoThere is no stronger force than an idea whose time has comerdquo

Banks amp Insurers across the World have realizedBancassurance is the distribution channel whichwould help them achieve economies of scale andboost their revenues in the 21st Century

Victor Hugo(19th Century French Novelist)

BANCASSURANCE

ldquoThere is no stronger force than an idea whose time has comerdquo

Banks amp Insurers across the World have realizedBancassurance is the distribution channel whichwould help them achieve economies of scale andboost their revenues in the 21st Century

Victor Hugo(19th Century French Novelist)

ldquoThere is no stronger force than an idea whose time has comerdquo

Banks amp Insurers across the World have realizedBancassurance is the distribution channel whichwould help them achieve economies of scale andboost their revenues in the 21st Century

Victor Hugo(19th Century French Novelist)

BANCASSURANCE - DEFINITION

bull The sale of insurance and other similar productsthrough a bank

bull This can help the consumer in some situationsfor example when a bank requires life insurancefor those receiving a mortgage loan theconsumer could purchase the insurance directlyfrom the bank

POTENTIAL OF BANCASSURANCE IN

INDIAhellip

Banks are major players in the Indian FinancialSystem

-gt 67000 branches(32000 rural and 14700 semi urban)

-gt Enormous retail account base of 450 mn Deposit Ac

-gt Total deposit base of Rs 14 trillion (USD 300 bn)

Brick amp Mortar Model of Banking

Approximately 80 of Banking Transactions are doneat the Bank Branches

Very High Trust in the Banking System

Bank Managers looked upon as ldquoFinancial Advisorsrdquo

FORMS OF BANCASSURANCE

ARRANGEMENTS

Strategic Alliance There is a tie-up between a bankand an insurance company The bank only markets theproducts of the insurance company

Full Integration This arrangement entails a fullintegration of banking and insurance services Thebank sells the insurance products under its brandacting as a provider of financial solutions matchingcustomer needs

Mixed Models Under this approach the marketing isdone by the insurers staff and the bank is responsiblefor generating leads only In other words the databaseof the bank is sold to the insurance company

Working of insurance

Evolutionbull Insurance in modern form originated in the Mediterranean during the 13th

century

bull Marine insurance is the oldest form of insurance followed by life insurance and fire insurance

bull The history of life insurance in India dates back to 1818 when it was conceived as a means to provide for English Widows

bull Oriental life Insurance Company was the first insurer and was incorporated at Calcutta in 1818

bull Insurance regulation formally began in India through the passing of two acts

- Life Insurance companies Act of 1912- Provident Fund Act of 1912

HISTORY OF INSURANCE IN INDIA

362014 28

Phase Period Industry

Phase I

a Life Insurance

b General Insurance

1818 to 1956

(about 138 yrs)

1850 to 1972

(about 122 yrs)

Many (245) private sector companies only

competitive market

Many (107) private sector companies only

competitive market

Phase II

aLife Insurance

bGeneral Insurance

1956 to 2000

(about 44 yrs)

1972 to 2000

(about 28 yrs)

Nationalization public sector or State

monopoly only one company

Nationalization public sector monopoly only

one company with its four subsidiaries

Phase III

Life Insurance and

General Insurance

After 2000

Opened to the entry of private domestic and

foreign companies mixed sector of public and

private sector units oligopoly of public sector

companies (14 life insurance and 12 general

insurance companies)

Origin And Growth Of Insurance Sector

In fiscal 2000-01 the Indian federal government lifted all entry restrictions for private sector investors

Foreign investment insurance market was also allowed with 26 percent cap

GIC was converted into Indias national reinsure From December2000

All the subsidiaries working under the GIC umbrella were restructured as independent insurance

companies

Origin And Growth Of Insurance Sector

Till end of FY 1999-2000 two state-run insurance companies namely Life Insurance Corporation (LIC)and General Insurance Corporation (GIC) were themonopoly insurance providers in India

Under GIC there were four subsidiariesndashNational Insurance Company Ltd ndashOriental Insurance Company Ltd ndashNew India Assurance Company Ltd ndashUnited India Assurance Company Ltd

Life Insurance Companies In India1 Bajaj Allianz Life Insurance Company Limited 2 Birla Sun Life Insurance Co Ltd 3 HDFC Standard Life Insurance Co Ltd 4 ICICI Prudential Life Insurance Co Ltd 5 ING Vysya Life Insurance Company Ltd 6 Life Insurance Corporation of India 7 Max New York Life Insurance Co Ltd 8 Met Life India Insurance Company Ltd 9 Kotak Mahindra Old Mutual Life Insurance Limited 10 SBI Life Insurance Co Ltd 11 Tata AIG Life Insurance Company Limited 12 Reliance Life Insurance Company Limited 13 Aviva Life Insurance Co India Pvt Ltd 14 Sahara India Life Insurance Co Ltd 15 Shriram Life Insurance Co Ltd 16 Bharti AXA Life Insurance Company Ltd 17 Future Generali Life Insurance Company Ltd 18 IDBI Fortis Life Insurance Company Ltd 19 Canara HSBC Oriental Bank of Commerce Life Insurance Co Ltd 20 AEGON Religare Life Insurance Company Limited 21 DLF Pramerica Life Insurance Co Ltd 22 Star Union Dai-ichi Life Insurance Comp Ltd

Non-Life Insurance companies in India

Bajaj Allianz General Insurance Co Ltd ICICI Lombard General Insurance Co Ltd IFFCO Tokyo General Insurance Co Ltd National Insurance Co Ltd New India Assurance Co Ltd Oriental Insurance Co Ltd Reliance General Insurance Co Ltd Royal Sundaram Alliance Insurance Co Ltd Tata AIG Life Insurance Co Ltd United India Insurance Co Ltd

Reinsurers General Insurance Corporation of India

MAJOR PLAYERS

LIC Products amp Plans

Life Insurance Corporation of India (LIC) was formed in

September 1956 by an Act of Parliament LIC Act 1956 with a

contribution of Rs 50 million

The then Finance Minister Mr C D Deshmukh while piloting the

bill for nationalization outlined the objectives of LIC thus ldquoTo

conduct the business with utmost economy with the spirit of

trusteeship to charge premium no higher than warranted by strict

actuarial considerations to invest the funds for obtaining maximum

yield for the policy holders consistent with safety of capital to

render prompt and efficient service to policy holders thereby

making Insurance widely popularrdquo

362014 35

LIC OF INDIA contdhellip

Presently the LIC has a network of seven zones 100 divisions and 2048branches personnel exceed seven lakhs employees and over six lakhsagents

Vision A trans-nationally competitive financial conglomerate ofsignificance to societies and Pride of India

Mission To explore and enhance the quality of the life of people throughfinancial security by providing products and services of aspiredattributes with competitive returns and by rendering resources foreconomic development

Values Caring and Courtesy Initiatives and Innovation Integrity andTransparency Quality and Returns Participation and Relationshipand Trustworthiness and Reliability

Culture Agility (quickness) Adaptability Collaboration CommitmentDiscipline Empowerment Sensitivity and Excellence

362014 36

LIC OF INDIA contdhellipObjectives

bull Spread Life Insurance widely and in particular to the rural areas

bull Maximise mobilization of peoplersquos savings by making insurance-

linked savings adequately attractive

bull Deployment of funds to the best of advantage of the investors as

well as the community as whole keeping in view national priorities

and obligations of attractive return

bull Conduct of business at most economy and with the full realisation

that the money belongs to the policyholders

bull Act as trustee of the insured public in their individual and collective

capacities

362014 37

INVESTMENT POLICY OF LICrsquos

362014 38

INVESTMENT POLICY OF LICrsquos

contdhellip

362014 39

1) LIC2) ICICI3) HDFC

MARKET SHARE

CURRENT SCENARIO

bullGrowing at the rate of 15-20 annuallybull75 population has no insurancebull Adds 7 to countryrsquos GDPbullLIC market share come down to 75 and private insurers increased over 24bullAnnuity or pension product have over 33 of marketbullUnity linked insurance scheme have monopoly

GENERAL INSURANCE CORPORATION (GIC)

bull Prior nationalization there were 68 Indian insurers (includingLIC) and 45 non-Indian insurers did the business

bull In Nov 1972 the general insurance business was nationalized bythe General Insurance Business (Nationalized) Act 1972(GIBNA) and vested in the hand of the GIC and its foursubsidiaries viz

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull GIC was incorporated as a holding company in 1992

bull General Insurance Business is completely owned by thegovernment

bull The paid up capital of GIC was fully subscribed by theGovernment and of four subsidiaries

bull It was controlled by a single organization with four subsidiaries

362014 43

G I C contdhellip

bull GICrsquos four subsidiaries

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull The Govt of India took over Control supervision and policy

making is with GIC

bull The premium income for GIC comes mainly through the obligatory

reinsurance premium on a quota share basis from subsidiaries on

their direct business in India (almost 20 of subsidiaries business

come to GIC)

362014 44

I R D A

362014 45

IRDArsquoS MISSION

To protect the interests of the policyholders to regulate promote

and ensure orderly growth of the insurance industry and for

matters connected therewith or incidental thereto

362014 46

Composition of Authority under IRDA Act 1999

As per the section 4 of IRDA Act 1999 Insurance Regulatory

and Development Authority (IRDA which was constituted by

an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

a a Chairman

b five whole-time members

c four part-time members

(all appointed by the Government of India)

Current Scenario

bull In 1993 Malhotra Committee was formed and several Insurance Reforms were made

ndash Redesigned the Structure

ndash Increased Competition

ndash Regulatory body (IRDA)

ndash Investments

ndash Customer Service

Present scenario

bull 1 Enormous mismatch in global healthcare financing

bull 2 Developing countrieshave 84 of population amp 90 of disease burden

bull 3 By 2020 world population-75 billion

bull By 2050 world population 9 billion

bull Most of the growth in developing countries

bull 4 According to NHA of India 2001-02 sources of finance in health sector

bull Household 688

bull Central Govt 72

bull State Govt 144

bull Private Firms 3

bull Public Firms 2

bull External Funds 2

bull Local Govt 22

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

POTENTIAL OF BANCASSURANCE IN

INDIAhellip

Banks are major players in the Indian FinancialSystem

-gt 67000 branches(32000 rural and 14700 semi urban)

-gt Enormous retail account base of 450 mn Deposit Ac

-gt Total deposit base of Rs 14 trillion (USD 300 bn)

Brick amp Mortar Model of Banking

Approximately 80 of Banking Transactions are doneat the Bank Branches

Very High Trust in the Banking System

Bank Managers looked upon as ldquoFinancial Advisorsrdquo

FORMS OF BANCASSURANCE

ARRANGEMENTS

Strategic Alliance There is a tie-up between a bankand an insurance company The bank only markets theproducts of the insurance company

Full Integration This arrangement entails a fullintegration of banking and insurance services Thebank sells the insurance products under its brandacting as a provider of financial solutions matchingcustomer needs

Mixed Models Under this approach the marketing isdone by the insurers staff and the bank is responsiblefor generating leads only In other words the databaseof the bank is sold to the insurance company

Working of insurance

Evolutionbull Insurance in modern form originated in the Mediterranean during the 13th

century

bull Marine insurance is the oldest form of insurance followed by life insurance and fire insurance

bull The history of life insurance in India dates back to 1818 when it was conceived as a means to provide for English Widows

bull Oriental life Insurance Company was the first insurer and was incorporated at Calcutta in 1818

bull Insurance regulation formally began in India through the passing of two acts

- Life Insurance companies Act of 1912- Provident Fund Act of 1912

HISTORY OF INSURANCE IN INDIA

362014 28

Phase Period Industry

Phase I

a Life Insurance

b General Insurance

1818 to 1956

(about 138 yrs)

1850 to 1972

(about 122 yrs)

Many (245) private sector companies only

competitive market

Many (107) private sector companies only

competitive market

Phase II

aLife Insurance

bGeneral Insurance

1956 to 2000

(about 44 yrs)

1972 to 2000

(about 28 yrs)

Nationalization public sector or State

monopoly only one company

Nationalization public sector monopoly only

one company with its four subsidiaries

Phase III

Life Insurance and

General Insurance

After 2000

Opened to the entry of private domestic and

foreign companies mixed sector of public and

private sector units oligopoly of public sector

companies (14 life insurance and 12 general

insurance companies)

Origin And Growth Of Insurance Sector

In fiscal 2000-01 the Indian federal government lifted all entry restrictions for private sector investors

Foreign investment insurance market was also allowed with 26 percent cap

GIC was converted into Indias national reinsure From December2000

All the subsidiaries working under the GIC umbrella were restructured as independent insurance

companies

Origin And Growth Of Insurance Sector

Till end of FY 1999-2000 two state-run insurance companies namely Life Insurance Corporation (LIC)and General Insurance Corporation (GIC) were themonopoly insurance providers in India

Under GIC there were four subsidiariesndashNational Insurance Company Ltd ndashOriental Insurance Company Ltd ndashNew India Assurance Company Ltd ndashUnited India Assurance Company Ltd

Life Insurance Companies In India1 Bajaj Allianz Life Insurance Company Limited 2 Birla Sun Life Insurance Co Ltd 3 HDFC Standard Life Insurance Co Ltd 4 ICICI Prudential Life Insurance Co Ltd 5 ING Vysya Life Insurance Company Ltd 6 Life Insurance Corporation of India 7 Max New York Life Insurance Co Ltd 8 Met Life India Insurance Company Ltd 9 Kotak Mahindra Old Mutual Life Insurance Limited 10 SBI Life Insurance Co Ltd 11 Tata AIG Life Insurance Company Limited 12 Reliance Life Insurance Company Limited 13 Aviva Life Insurance Co India Pvt Ltd 14 Sahara India Life Insurance Co Ltd 15 Shriram Life Insurance Co Ltd 16 Bharti AXA Life Insurance Company Ltd 17 Future Generali Life Insurance Company Ltd 18 IDBI Fortis Life Insurance Company Ltd 19 Canara HSBC Oriental Bank of Commerce Life Insurance Co Ltd 20 AEGON Religare Life Insurance Company Limited 21 DLF Pramerica Life Insurance Co Ltd 22 Star Union Dai-ichi Life Insurance Comp Ltd

Non-Life Insurance companies in India

Bajaj Allianz General Insurance Co Ltd ICICI Lombard General Insurance Co Ltd IFFCO Tokyo General Insurance Co Ltd National Insurance Co Ltd New India Assurance Co Ltd Oriental Insurance Co Ltd Reliance General Insurance Co Ltd Royal Sundaram Alliance Insurance Co Ltd Tata AIG Life Insurance Co Ltd United India Insurance Co Ltd

Reinsurers General Insurance Corporation of India

MAJOR PLAYERS

LIC Products amp Plans

Life Insurance Corporation of India (LIC) was formed in

September 1956 by an Act of Parliament LIC Act 1956 with a

contribution of Rs 50 million

The then Finance Minister Mr C D Deshmukh while piloting the

bill for nationalization outlined the objectives of LIC thus ldquoTo

conduct the business with utmost economy with the spirit of

trusteeship to charge premium no higher than warranted by strict

actuarial considerations to invest the funds for obtaining maximum

yield for the policy holders consistent with safety of capital to

render prompt and efficient service to policy holders thereby

making Insurance widely popularrdquo

362014 35

LIC OF INDIA contdhellip

Presently the LIC has a network of seven zones 100 divisions and 2048branches personnel exceed seven lakhs employees and over six lakhsagents

Vision A trans-nationally competitive financial conglomerate ofsignificance to societies and Pride of India

Mission To explore and enhance the quality of the life of people throughfinancial security by providing products and services of aspiredattributes with competitive returns and by rendering resources foreconomic development

Values Caring and Courtesy Initiatives and Innovation Integrity andTransparency Quality and Returns Participation and Relationshipand Trustworthiness and Reliability

Culture Agility (quickness) Adaptability Collaboration CommitmentDiscipline Empowerment Sensitivity and Excellence

362014 36

LIC OF INDIA contdhellipObjectives

bull Spread Life Insurance widely and in particular to the rural areas

bull Maximise mobilization of peoplersquos savings by making insurance-

linked savings adequately attractive

bull Deployment of funds to the best of advantage of the investors as

well as the community as whole keeping in view national priorities

and obligations of attractive return

bull Conduct of business at most economy and with the full realisation

that the money belongs to the policyholders

bull Act as trustee of the insured public in their individual and collective

capacities

362014 37

INVESTMENT POLICY OF LICrsquos

362014 38

INVESTMENT POLICY OF LICrsquos

contdhellip

362014 39

1) LIC2) ICICI3) HDFC

MARKET SHARE

CURRENT SCENARIO

bullGrowing at the rate of 15-20 annuallybull75 population has no insurancebull Adds 7 to countryrsquos GDPbullLIC market share come down to 75 and private insurers increased over 24bullAnnuity or pension product have over 33 of marketbullUnity linked insurance scheme have monopoly

GENERAL INSURANCE CORPORATION (GIC)

bull Prior nationalization there were 68 Indian insurers (includingLIC) and 45 non-Indian insurers did the business

bull In Nov 1972 the general insurance business was nationalized bythe General Insurance Business (Nationalized) Act 1972(GIBNA) and vested in the hand of the GIC and its foursubsidiaries viz

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull GIC was incorporated as a holding company in 1992

bull General Insurance Business is completely owned by thegovernment

bull The paid up capital of GIC was fully subscribed by theGovernment and of four subsidiaries

bull It was controlled by a single organization with four subsidiaries

362014 43

G I C contdhellip

bull GICrsquos four subsidiaries

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull The Govt of India took over Control supervision and policy

making is with GIC

bull The premium income for GIC comes mainly through the obligatory

reinsurance premium on a quota share basis from subsidiaries on

their direct business in India (almost 20 of subsidiaries business

come to GIC)

362014 44

I R D A

362014 45

IRDArsquoS MISSION

To protect the interests of the policyholders to regulate promote

and ensure orderly growth of the insurance industry and for

matters connected therewith or incidental thereto

362014 46

Composition of Authority under IRDA Act 1999

As per the section 4 of IRDA Act 1999 Insurance Regulatory

and Development Authority (IRDA which was constituted by

an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

a a Chairman

b five whole-time members

c four part-time members

(all appointed by the Government of India)

Current Scenario

bull In 1993 Malhotra Committee was formed and several Insurance Reforms were made

ndash Redesigned the Structure

ndash Increased Competition

ndash Regulatory body (IRDA)

ndash Investments

ndash Customer Service

Present scenario

bull 1 Enormous mismatch in global healthcare financing

bull 2 Developing countrieshave 84 of population amp 90 of disease burden

bull 3 By 2020 world population-75 billion

bull By 2050 world population 9 billion

bull Most of the growth in developing countries

bull 4 According to NHA of India 2001-02 sources of finance in health sector

bull Household 688

bull Central Govt 72

bull State Govt 144

bull Private Firms 3

bull Public Firms 2

bull External Funds 2

bull Local Govt 22

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

FORMS OF BANCASSURANCE

ARRANGEMENTS

Strategic Alliance There is a tie-up between a bankand an insurance company The bank only markets theproducts of the insurance company

Full Integration This arrangement entails a fullintegration of banking and insurance services Thebank sells the insurance products under its brandacting as a provider of financial solutions matchingcustomer needs

Mixed Models Under this approach the marketing isdone by the insurers staff and the bank is responsiblefor generating leads only In other words the databaseof the bank is sold to the insurance company

Working of insurance

Evolutionbull Insurance in modern form originated in the Mediterranean during the 13th

century

bull Marine insurance is the oldest form of insurance followed by life insurance and fire insurance

bull The history of life insurance in India dates back to 1818 when it was conceived as a means to provide for English Widows

bull Oriental life Insurance Company was the first insurer and was incorporated at Calcutta in 1818

bull Insurance regulation formally began in India through the passing of two acts

- Life Insurance companies Act of 1912- Provident Fund Act of 1912

HISTORY OF INSURANCE IN INDIA

362014 28

Phase Period Industry

Phase I

a Life Insurance

b General Insurance

1818 to 1956

(about 138 yrs)

1850 to 1972

(about 122 yrs)

Many (245) private sector companies only

competitive market

Many (107) private sector companies only

competitive market

Phase II

aLife Insurance

bGeneral Insurance

1956 to 2000

(about 44 yrs)

1972 to 2000

(about 28 yrs)

Nationalization public sector or State

monopoly only one company

Nationalization public sector monopoly only

one company with its four subsidiaries

Phase III

Life Insurance and

General Insurance

After 2000

Opened to the entry of private domestic and

foreign companies mixed sector of public and

private sector units oligopoly of public sector

companies (14 life insurance and 12 general

insurance companies)

Origin And Growth Of Insurance Sector

In fiscal 2000-01 the Indian federal government lifted all entry restrictions for private sector investors

Foreign investment insurance market was also allowed with 26 percent cap

GIC was converted into Indias national reinsure From December2000

All the subsidiaries working under the GIC umbrella were restructured as independent insurance

companies

Origin And Growth Of Insurance Sector

Till end of FY 1999-2000 two state-run insurance companies namely Life Insurance Corporation (LIC)and General Insurance Corporation (GIC) were themonopoly insurance providers in India

Under GIC there were four subsidiariesndashNational Insurance Company Ltd ndashOriental Insurance Company Ltd ndashNew India Assurance Company Ltd ndashUnited India Assurance Company Ltd

Life Insurance Companies In India1 Bajaj Allianz Life Insurance Company Limited 2 Birla Sun Life Insurance Co Ltd 3 HDFC Standard Life Insurance Co Ltd 4 ICICI Prudential Life Insurance Co Ltd 5 ING Vysya Life Insurance Company Ltd 6 Life Insurance Corporation of India 7 Max New York Life Insurance Co Ltd 8 Met Life India Insurance Company Ltd 9 Kotak Mahindra Old Mutual Life Insurance Limited 10 SBI Life Insurance Co Ltd 11 Tata AIG Life Insurance Company Limited 12 Reliance Life Insurance Company Limited 13 Aviva Life Insurance Co India Pvt Ltd 14 Sahara India Life Insurance Co Ltd 15 Shriram Life Insurance Co Ltd 16 Bharti AXA Life Insurance Company Ltd 17 Future Generali Life Insurance Company Ltd 18 IDBI Fortis Life Insurance Company Ltd 19 Canara HSBC Oriental Bank of Commerce Life Insurance Co Ltd 20 AEGON Religare Life Insurance Company Limited 21 DLF Pramerica Life Insurance Co Ltd 22 Star Union Dai-ichi Life Insurance Comp Ltd

Non-Life Insurance companies in India

Bajaj Allianz General Insurance Co Ltd ICICI Lombard General Insurance Co Ltd IFFCO Tokyo General Insurance Co Ltd National Insurance Co Ltd New India Assurance Co Ltd Oriental Insurance Co Ltd Reliance General Insurance Co Ltd Royal Sundaram Alliance Insurance Co Ltd Tata AIG Life Insurance Co Ltd United India Insurance Co Ltd

Reinsurers General Insurance Corporation of India

MAJOR PLAYERS

LIC Products amp Plans

Life Insurance Corporation of India (LIC) was formed in

September 1956 by an Act of Parliament LIC Act 1956 with a

contribution of Rs 50 million

The then Finance Minister Mr C D Deshmukh while piloting the

bill for nationalization outlined the objectives of LIC thus ldquoTo

conduct the business with utmost economy with the spirit of

trusteeship to charge premium no higher than warranted by strict

actuarial considerations to invest the funds for obtaining maximum

yield for the policy holders consistent with safety of capital to

render prompt and efficient service to policy holders thereby

making Insurance widely popularrdquo

362014 35

LIC OF INDIA contdhellip

Presently the LIC has a network of seven zones 100 divisions and 2048branches personnel exceed seven lakhs employees and over six lakhsagents

Vision A trans-nationally competitive financial conglomerate ofsignificance to societies and Pride of India

Mission To explore and enhance the quality of the life of people throughfinancial security by providing products and services of aspiredattributes with competitive returns and by rendering resources foreconomic development

Values Caring and Courtesy Initiatives and Innovation Integrity andTransparency Quality and Returns Participation and Relationshipand Trustworthiness and Reliability

Culture Agility (quickness) Adaptability Collaboration CommitmentDiscipline Empowerment Sensitivity and Excellence

362014 36

LIC OF INDIA contdhellipObjectives

bull Spread Life Insurance widely and in particular to the rural areas

bull Maximise mobilization of peoplersquos savings by making insurance-

linked savings adequately attractive

bull Deployment of funds to the best of advantage of the investors as

well as the community as whole keeping in view national priorities

and obligations of attractive return

bull Conduct of business at most economy and with the full realisation

that the money belongs to the policyholders

bull Act as trustee of the insured public in their individual and collective

capacities

362014 37

INVESTMENT POLICY OF LICrsquos

362014 38

INVESTMENT POLICY OF LICrsquos

contdhellip

362014 39

1) LIC2) ICICI3) HDFC

MARKET SHARE

CURRENT SCENARIO

bullGrowing at the rate of 15-20 annuallybull75 population has no insurancebull Adds 7 to countryrsquos GDPbullLIC market share come down to 75 and private insurers increased over 24bullAnnuity or pension product have over 33 of marketbullUnity linked insurance scheme have monopoly

GENERAL INSURANCE CORPORATION (GIC)

bull Prior nationalization there were 68 Indian insurers (includingLIC) and 45 non-Indian insurers did the business

bull In Nov 1972 the general insurance business was nationalized bythe General Insurance Business (Nationalized) Act 1972(GIBNA) and vested in the hand of the GIC and its foursubsidiaries viz

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull GIC was incorporated as a holding company in 1992

bull General Insurance Business is completely owned by thegovernment

bull The paid up capital of GIC was fully subscribed by theGovernment and of four subsidiaries

bull It was controlled by a single organization with four subsidiaries

362014 43

G I C contdhellip

bull GICrsquos four subsidiaries

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull The Govt of India took over Control supervision and policy

making is with GIC

bull The premium income for GIC comes mainly through the obligatory

reinsurance premium on a quota share basis from subsidiaries on

their direct business in India (almost 20 of subsidiaries business

come to GIC)

362014 44

I R D A

362014 45

IRDArsquoS MISSION

To protect the interests of the policyholders to regulate promote

and ensure orderly growth of the insurance industry and for

matters connected therewith or incidental thereto

362014 46

Composition of Authority under IRDA Act 1999

As per the section 4 of IRDA Act 1999 Insurance Regulatory

and Development Authority (IRDA which was constituted by

an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

a a Chairman

b five whole-time members

c four part-time members

(all appointed by the Government of India)

Current Scenario

bull In 1993 Malhotra Committee was formed and several Insurance Reforms were made

ndash Redesigned the Structure

ndash Increased Competition

ndash Regulatory body (IRDA)

ndash Investments

ndash Customer Service

Present scenario

bull 1 Enormous mismatch in global healthcare financing

bull 2 Developing countrieshave 84 of population amp 90 of disease burden

bull 3 By 2020 world population-75 billion

bull By 2050 world population 9 billion

bull Most of the growth in developing countries

bull 4 According to NHA of India 2001-02 sources of finance in health sector

bull Household 688

bull Central Govt 72

bull State Govt 144

bull Private Firms 3

bull Public Firms 2

bull External Funds 2

bull Local Govt 22

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

Working of insurance

Evolutionbull Insurance in modern form originated in the Mediterranean during the 13th

century

bull Marine insurance is the oldest form of insurance followed by life insurance and fire insurance

bull The history of life insurance in India dates back to 1818 when it was conceived as a means to provide for English Widows

bull Oriental life Insurance Company was the first insurer and was incorporated at Calcutta in 1818

bull Insurance regulation formally began in India through the passing of two acts

- Life Insurance companies Act of 1912- Provident Fund Act of 1912

HISTORY OF INSURANCE IN INDIA

362014 28

Phase Period Industry

Phase I

a Life Insurance

b General Insurance

1818 to 1956

(about 138 yrs)

1850 to 1972

(about 122 yrs)

Many (245) private sector companies only

competitive market

Many (107) private sector companies only

competitive market

Phase II

aLife Insurance

bGeneral Insurance

1956 to 2000

(about 44 yrs)

1972 to 2000

(about 28 yrs)

Nationalization public sector or State

monopoly only one company

Nationalization public sector monopoly only

one company with its four subsidiaries

Phase III

Life Insurance and

General Insurance

After 2000

Opened to the entry of private domestic and

foreign companies mixed sector of public and

private sector units oligopoly of public sector

companies (14 life insurance and 12 general

insurance companies)

Origin And Growth Of Insurance Sector

In fiscal 2000-01 the Indian federal government lifted all entry restrictions for private sector investors

Foreign investment insurance market was also allowed with 26 percent cap

GIC was converted into Indias national reinsure From December2000

All the subsidiaries working under the GIC umbrella were restructured as independent insurance

companies

Origin And Growth Of Insurance Sector

Till end of FY 1999-2000 two state-run insurance companies namely Life Insurance Corporation (LIC)and General Insurance Corporation (GIC) were themonopoly insurance providers in India

Under GIC there were four subsidiariesndashNational Insurance Company Ltd ndashOriental Insurance Company Ltd ndashNew India Assurance Company Ltd ndashUnited India Assurance Company Ltd

Life Insurance Companies In India1 Bajaj Allianz Life Insurance Company Limited 2 Birla Sun Life Insurance Co Ltd 3 HDFC Standard Life Insurance Co Ltd 4 ICICI Prudential Life Insurance Co Ltd 5 ING Vysya Life Insurance Company Ltd 6 Life Insurance Corporation of India 7 Max New York Life Insurance Co Ltd 8 Met Life India Insurance Company Ltd 9 Kotak Mahindra Old Mutual Life Insurance Limited 10 SBI Life Insurance Co Ltd 11 Tata AIG Life Insurance Company Limited 12 Reliance Life Insurance Company Limited 13 Aviva Life Insurance Co India Pvt Ltd 14 Sahara India Life Insurance Co Ltd 15 Shriram Life Insurance Co Ltd 16 Bharti AXA Life Insurance Company Ltd 17 Future Generali Life Insurance Company Ltd 18 IDBI Fortis Life Insurance Company Ltd 19 Canara HSBC Oriental Bank of Commerce Life Insurance Co Ltd 20 AEGON Religare Life Insurance Company Limited 21 DLF Pramerica Life Insurance Co Ltd 22 Star Union Dai-ichi Life Insurance Comp Ltd

Non-Life Insurance companies in India

Bajaj Allianz General Insurance Co Ltd ICICI Lombard General Insurance Co Ltd IFFCO Tokyo General Insurance Co Ltd National Insurance Co Ltd New India Assurance Co Ltd Oriental Insurance Co Ltd Reliance General Insurance Co Ltd Royal Sundaram Alliance Insurance Co Ltd Tata AIG Life Insurance Co Ltd United India Insurance Co Ltd

Reinsurers General Insurance Corporation of India

MAJOR PLAYERS

LIC Products amp Plans

Life Insurance Corporation of India (LIC) was formed in

September 1956 by an Act of Parliament LIC Act 1956 with a

contribution of Rs 50 million

The then Finance Minister Mr C D Deshmukh while piloting the

bill for nationalization outlined the objectives of LIC thus ldquoTo

conduct the business with utmost economy with the spirit of

trusteeship to charge premium no higher than warranted by strict

actuarial considerations to invest the funds for obtaining maximum

yield for the policy holders consistent with safety of capital to

render prompt and efficient service to policy holders thereby

making Insurance widely popularrdquo

362014 35

LIC OF INDIA contdhellip

Presently the LIC has a network of seven zones 100 divisions and 2048branches personnel exceed seven lakhs employees and over six lakhsagents

Vision A trans-nationally competitive financial conglomerate ofsignificance to societies and Pride of India

Mission To explore and enhance the quality of the life of people throughfinancial security by providing products and services of aspiredattributes with competitive returns and by rendering resources foreconomic development

Values Caring and Courtesy Initiatives and Innovation Integrity andTransparency Quality and Returns Participation and Relationshipand Trustworthiness and Reliability

Culture Agility (quickness) Adaptability Collaboration CommitmentDiscipline Empowerment Sensitivity and Excellence

362014 36

LIC OF INDIA contdhellipObjectives

bull Spread Life Insurance widely and in particular to the rural areas

bull Maximise mobilization of peoplersquos savings by making insurance-

linked savings adequately attractive

bull Deployment of funds to the best of advantage of the investors as

well as the community as whole keeping in view national priorities

and obligations of attractive return

bull Conduct of business at most economy and with the full realisation

that the money belongs to the policyholders

bull Act as trustee of the insured public in their individual and collective

capacities

362014 37

INVESTMENT POLICY OF LICrsquos

362014 38

INVESTMENT POLICY OF LICrsquos

contdhellip

362014 39

1) LIC2) ICICI3) HDFC

MARKET SHARE

CURRENT SCENARIO

bullGrowing at the rate of 15-20 annuallybull75 population has no insurancebull Adds 7 to countryrsquos GDPbullLIC market share come down to 75 and private insurers increased over 24bullAnnuity or pension product have over 33 of marketbullUnity linked insurance scheme have monopoly

GENERAL INSURANCE CORPORATION (GIC)

bull Prior nationalization there were 68 Indian insurers (includingLIC) and 45 non-Indian insurers did the business

bull In Nov 1972 the general insurance business was nationalized bythe General Insurance Business (Nationalized) Act 1972(GIBNA) and vested in the hand of the GIC and its foursubsidiaries viz

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull GIC was incorporated as a holding company in 1992

bull General Insurance Business is completely owned by thegovernment

bull The paid up capital of GIC was fully subscribed by theGovernment and of four subsidiaries

bull It was controlled by a single organization with four subsidiaries

362014 43

G I C contdhellip

bull GICrsquos four subsidiaries

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull The Govt of India took over Control supervision and policy

making is with GIC

bull The premium income for GIC comes mainly through the obligatory

reinsurance premium on a quota share basis from subsidiaries on

their direct business in India (almost 20 of subsidiaries business

come to GIC)

362014 44

I R D A

362014 45

IRDArsquoS MISSION

To protect the interests of the policyholders to regulate promote

and ensure orderly growth of the insurance industry and for

matters connected therewith or incidental thereto

362014 46

Composition of Authority under IRDA Act 1999

As per the section 4 of IRDA Act 1999 Insurance Regulatory

and Development Authority (IRDA which was constituted by

an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

a a Chairman

b five whole-time members

c four part-time members

(all appointed by the Government of India)

Current Scenario

bull In 1993 Malhotra Committee was formed and several Insurance Reforms were made

ndash Redesigned the Structure

ndash Increased Competition

ndash Regulatory body (IRDA)

ndash Investments

ndash Customer Service

Present scenario

bull 1 Enormous mismatch in global healthcare financing

bull 2 Developing countrieshave 84 of population amp 90 of disease burden

bull 3 By 2020 world population-75 billion

bull By 2050 world population 9 billion

bull Most of the growth in developing countries

bull 4 According to NHA of India 2001-02 sources of finance in health sector

bull Household 688

bull Central Govt 72

bull State Govt 144

bull Private Firms 3

bull Public Firms 2

bull External Funds 2

bull Local Govt 22

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

Evolutionbull Insurance in modern form originated in the Mediterranean during the 13th

century

bull Marine insurance is the oldest form of insurance followed by life insurance and fire insurance

bull The history of life insurance in India dates back to 1818 when it was conceived as a means to provide for English Widows

bull Oriental life Insurance Company was the first insurer and was incorporated at Calcutta in 1818

bull Insurance regulation formally began in India through the passing of two acts

- Life Insurance companies Act of 1912- Provident Fund Act of 1912

HISTORY OF INSURANCE IN INDIA

362014 28

Phase Period Industry

Phase I

a Life Insurance

b General Insurance

1818 to 1956

(about 138 yrs)

1850 to 1972

(about 122 yrs)

Many (245) private sector companies only

competitive market

Many (107) private sector companies only

competitive market

Phase II

aLife Insurance

bGeneral Insurance

1956 to 2000

(about 44 yrs)

1972 to 2000

(about 28 yrs)

Nationalization public sector or State

monopoly only one company

Nationalization public sector monopoly only

one company with its four subsidiaries

Phase III

Life Insurance and

General Insurance

After 2000

Opened to the entry of private domestic and

foreign companies mixed sector of public and

private sector units oligopoly of public sector

companies (14 life insurance and 12 general

insurance companies)

Origin And Growth Of Insurance Sector

In fiscal 2000-01 the Indian federal government lifted all entry restrictions for private sector investors

Foreign investment insurance market was also allowed with 26 percent cap

GIC was converted into Indias national reinsure From December2000

All the subsidiaries working under the GIC umbrella were restructured as independent insurance

companies

Origin And Growth Of Insurance Sector

Till end of FY 1999-2000 two state-run insurance companies namely Life Insurance Corporation (LIC)and General Insurance Corporation (GIC) were themonopoly insurance providers in India

Under GIC there were four subsidiariesndashNational Insurance Company Ltd ndashOriental Insurance Company Ltd ndashNew India Assurance Company Ltd ndashUnited India Assurance Company Ltd

Life Insurance Companies In India1 Bajaj Allianz Life Insurance Company Limited 2 Birla Sun Life Insurance Co Ltd 3 HDFC Standard Life Insurance Co Ltd 4 ICICI Prudential Life Insurance Co Ltd 5 ING Vysya Life Insurance Company Ltd 6 Life Insurance Corporation of India 7 Max New York Life Insurance Co Ltd 8 Met Life India Insurance Company Ltd 9 Kotak Mahindra Old Mutual Life Insurance Limited 10 SBI Life Insurance Co Ltd 11 Tata AIG Life Insurance Company Limited 12 Reliance Life Insurance Company Limited 13 Aviva Life Insurance Co India Pvt Ltd 14 Sahara India Life Insurance Co Ltd 15 Shriram Life Insurance Co Ltd 16 Bharti AXA Life Insurance Company Ltd 17 Future Generali Life Insurance Company Ltd 18 IDBI Fortis Life Insurance Company Ltd 19 Canara HSBC Oriental Bank of Commerce Life Insurance Co Ltd 20 AEGON Religare Life Insurance Company Limited 21 DLF Pramerica Life Insurance Co Ltd 22 Star Union Dai-ichi Life Insurance Comp Ltd

Non-Life Insurance companies in India

Bajaj Allianz General Insurance Co Ltd ICICI Lombard General Insurance Co Ltd IFFCO Tokyo General Insurance Co Ltd National Insurance Co Ltd New India Assurance Co Ltd Oriental Insurance Co Ltd Reliance General Insurance Co Ltd Royal Sundaram Alliance Insurance Co Ltd Tata AIG Life Insurance Co Ltd United India Insurance Co Ltd

Reinsurers General Insurance Corporation of India

MAJOR PLAYERS

LIC Products amp Plans

Life Insurance Corporation of India (LIC) was formed in

September 1956 by an Act of Parliament LIC Act 1956 with a

contribution of Rs 50 million

The then Finance Minister Mr C D Deshmukh while piloting the

bill for nationalization outlined the objectives of LIC thus ldquoTo

conduct the business with utmost economy with the spirit of

trusteeship to charge premium no higher than warranted by strict

actuarial considerations to invest the funds for obtaining maximum

yield for the policy holders consistent with safety of capital to

render prompt and efficient service to policy holders thereby

making Insurance widely popularrdquo

362014 35

LIC OF INDIA contdhellip

Presently the LIC has a network of seven zones 100 divisions and 2048branches personnel exceed seven lakhs employees and over six lakhsagents

Vision A trans-nationally competitive financial conglomerate ofsignificance to societies and Pride of India

Mission To explore and enhance the quality of the life of people throughfinancial security by providing products and services of aspiredattributes with competitive returns and by rendering resources foreconomic development

Values Caring and Courtesy Initiatives and Innovation Integrity andTransparency Quality and Returns Participation and Relationshipand Trustworthiness and Reliability

Culture Agility (quickness) Adaptability Collaboration CommitmentDiscipline Empowerment Sensitivity and Excellence

362014 36

LIC OF INDIA contdhellipObjectives

bull Spread Life Insurance widely and in particular to the rural areas

bull Maximise mobilization of peoplersquos savings by making insurance-

linked savings adequately attractive

bull Deployment of funds to the best of advantage of the investors as

well as the community as whole keeping in view national priorities

and obligations of attractive return

bull Conduct of business at most economy and with the full realisation

that the money belongs to the policyholders

bull Act as trustee of the insured public in their individual and collective

capacities

362014 37

INVESTMENT POLICY OF LICrsquos

362014 38

INVESTMENT POLICY OF LICrsquos

contdhellip

362014 39

1) LIC2) ICICI3) HDFC

MARKET SHARE

CURRENT SCENARIO

bullGrowing at the rate of 15-20 annuallybull75 population has no insurancebull Adds 7 to countryrsquos GDPbullLIC market share come down to 75 and private insurers increased over 24bullAnnuity or pension product have over 33 of marketbullUnity linked insurance scheme have monopoly

GENERAL INSURANCE CORPORATION (GIC)

bull Prior nationalization there were 68 Indian insurers (includingLIC) and 45 non-Indian insurers did the business

bull In Nov 1972 the general insurance business was nationalized bythe General Insurance Business (Nationalized) Act 1972(GIBNA) and vested in the hand of the GIC and its foursubsidiaries viz

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull GIC was incorporated as a holding company in 1992

bull General Insurance Business is completely owned by thegovernment

bull The paid up capital of GIC was fully subscribed by theGovernment and of four subsidiaries

bull It was controlled by a single organization with four subsidiaries

362014 43

G I C contdhellip

bull GICrsquos four subsidiaries

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull The Govt of India took over Control supervision and policy

making is with GIC

bull The premium income for GIC comes mainly through the obligatory

reinsurance premium on a quota share basis from subsidiaries on

their direct business in India (almost 20 of subsidiaries business

come to GIC)

362014 44

I R D A

362014 45

IRDArsquoS MISSION

To protect the interests of the policyholders to regulate promote

and ensure orderly growth of the insurance industry and for

matters connected therewith or incidental thereto

362014 46

Composition of Authority under IRDA Act 1999

As per the section 4 of IRDA Act 1999 Insurance Regulatory

and Development Authority (IRDA which was constituted by

an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

a a Chairman

b five whole-time members

c four part-time members

(all appointed by the Government of India)

Current Scenario

bull In 1993 Malhotra Committee was formed and several Insurance Reforms were made

ndash Redesigned the Structure

ndash Increased Competition

ndash Regulatory body (IRDA)

ndash Investments

ndash Customer Service

Present scenario

bull 1 Enormous mismatch in global healthcare financing

bull 2 Developing countrieshave 84 of population amp 90 of disease burden

bull 3 By 2020 world population-75 billion

bull By 2050 world population 9 billion

bull Most of the growth in developing countries

bull 4 According to NHA of India 2001-02 sources of finance in health sector

bull Household 688

bull Central Govt 72

bull State Govt 144

bull Private Firms 3

bull Public Firms 2

bull External Funds 2

bull Local Govt 22

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

HISTORY OF INSURANCE IN INDIA

362014 28

Phase Period Industry

Phase I

a Life Insurance

b General Insurance

1818 to 1956

(about 138 yrs)

1850 to 1972

(about 122 yrs)

Many (245) private sector companies only

competitive market

Many (107) private sector companies only

competitive market

Phase II

aLife Insurance

bGeneral Insurance

1956 to 2000

(about 44 yrs)

1972 to 2000

(about 28 yrs)

Nationalization public sector or State

monopoly only one company

Nationalization public sector monopoly only

one company with its four subsidiaries

Phase III

Life Insurance and

General Insurance

After 2000

Opened to the entry of private domestic and

foreign companies mixed sector of public and

private sector units oligopoly of public sector

companies (14 life insurance and 12 general

insurance companies)

Origin And Growth Of Insurance Sector

In fiscal 2000-01 the Indian federal government lifted all entry restrictions for private sector investors

Foreign investment insurance market was also allowed with 26 percent cap

GIC was converted into Indias national reinsure From December2000

All the subsidiaries working under the GIC umbrella were restructured as independent insurance

companies

Origin And Growth Of Insurance Sector

Till end of FY 1999-2000 two state-run insurance companies namely Life Insurance Corporation (LIC)and General Insurance Corporation (GIC) were themonopoly insurance providers in India

Under GIC there were four subsidiariesndashNational Insurance Company Ltd ndashOriental Insurance Company Ltd ndashNew India Assurance Company Ltd ndashUnited India Assurance Company Ltd

Life Insurance Companies In India1 Bajaj Allianz Life Insurance Company Limited 2 Birla Sun Life Insurance Co Ltd 3 HDFC Standard Life Insurance Co Ltd 4 ICICI Prudential Life Insurance Co Ltd 5 ING Vysya Life Insurance Company Ltd 6 Life Insurance Corporation of India 7 Max New York Life Insurance Co Ltd 8 Met Life India Insurance Company Ltd 9 Kotak Mahindra Old Mutual Life Insurance Limited 10 SBI Life Insurance Co Ltd 11 Tata AIG Life Insurance Company Limited 12 Reliance Life Insurance Company Limited 13 Aviva Life Insurance Co India Pvt Ltd 14 Sahara India Life Insurance Co Ltd 15 Shriram Life Insurance Co Ltd 16 Bharti AXA Life Insurance Company Ltd 17 Future Generali Life Insurance Company Ltd 18 IDBI Fortis Life Insurance Company Ltd 19 Canara HSBC Oriental Bank of Commerce Life Insurance Co Ltd 20 AEGON Religare Life Insurance Company Limited 21 DLF Pramerica Life Insurance Co Ltd 22 Star Union Dai-ichi Life Insurance Comp Ltd

Non-Life Insurance companies in India

Bajaj Allianz General Insurance Co Ltd ICICI Lombard General Insurance Co Ltd IFFCO Tokyo General Insurance Co Ltd National Insurance Co Ltd New India Assurance Co Ltd Oriental Insurance Co Ltd Reliance General Insurance Co Ltd Royal Sundaram Alliance Insurance Co Ltd Tata AIG Life Insurance Co Ltd United India Insurance Co Ltd

Reinsurers General Insurance Corporation of India

MAJOR PLAYERS

LIC Products amp Plans

Life Insurance Corporation of India (LIC) was formed in

September 1956 by an Act of Parliament LIC Act 1956 with a

contribution of Rs 50 million

The then Finance Minister Mr C D Deshmukh while piloting the

bill for nationalization outlined the objectives of LIC thus ldquoTo

conduct the business with utmost economy with the spirit of

trusteeship to charge premium no higher than warranted by strict

actuarial considerations to invest the funds for obtaining maximum

yield for the policy holders consistent with safety of capital to

render prompt and efficient service to policy holders thereby

making Insurance widely popularrdquo

362014 35

LIC OF INDIA contdhellip

Presently the LIC has a network of seven zones 100 divisions and 2048branches personnel exceed seven lakhs employees and over six lakhsagents

Vision A trans-nationally competitive financial conglomerate ofsignificance to societies and Pride of India

Mission To explore and enhance the quality of the life of people throughfinancial security by providing products and services of aspiredattributes with competitive returns and by rendering resources foreconomic development

Values Caring and Courtesy Initiatives and Innovation Integrity andTransparency Quality and Returns Participation and Relationshipand Trustworthiness and Reliability

Culture Agility (quickness) Adaptability Collaboration CommitmentDiscipline Empowerment Sensitivity and Excellence

362014 36

LIC OF INDIA contdhellipObjectives

bull Spread Life Insurance widely and in particular to the rural areas

bull Maximise mobilization of peoplersquos savings by making insurance-

linked savings adequately attractive

bull Deployment of funds to the best of advantage of the investors as

well as the community as whole keeping in view national priorities

and obligations of attractive return

bull Conduct of business at most economy and with the full realisation

that the money belongs to the policyholders

bull Act as trustee of the insured public in their individual and collective

capacities

362014 37

INVESTMENT POLICY OF LICrsquos

362014 38

INVESTMENT POLICY OF LICrsquos

contdhellip

362014 39

1) LIC2) ICICI3) HDFC

MARKET SHARE

CURRENT SCENARIO

bullGrowing at the rate of 15-20 annuallybull75 population has no insurancebull Adds 7 to countryrsquos GDPbullLIC market share come down to 75 and private insurers increased over 24bullAnnuity or pension product have over 33 of marketbullUnity linked insurance scheme have monopoly

GENERAL INSURANCE CORPORATION (GIC)

bull Prior nationalization there were 68 Indian insurers (includingLIC) and 45 non-Indian insurers did the business

bull In Nov 1972 the general insurance business was nationalized bythe General Insurance Business (Nationalized) Act 1972(GIBNA) and vested in the hand of the GIC and its foursubsidiaries viz

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull GIC was incorporated as a holding company in 1992

bull General Insurance Business is completely owned by thegovernment

bull The paid up capital of GIC was fully subscribed by theGovernment and of four subsidiaries

bull It was controlled by a single organization with four subsidiaries

362014 43

G I C contdhellip

bull GICrsquos four subsidiaries

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull The Govt of India took over Control supervision and policy

making is with GIC

bull The premium income for GIC comes mainly through the obligatory

reinsurance premium on a quota share basis from subsidiaries on

their direct business in India (almost 20 of subsidiaries business

come to GIC)

362014 44

I R D A

362014 45

IRDArsquoS MISSION

To protect the interests of the policyholders to regulate promote

and ensure orderly growth of the insurance industry and for

matters connected therewith or incidental thereto

362014 46

Composition of Authority under IRDA Act 1999

As per the section 4 of IRDA Act 1999 Insurance Regulatory

and Development Authority (IRDA which was constituted by

an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

a a Chairman

b five whole-time members

c four part-time members

(all appointed by the Government of India)

Current Scenario

bull In 1993 Malhotra Committee was formed and several Insurance Reforms were made

ndash Redesigned the Structure

ndash Increased Competition

ndash Regulatory body (IRDA)

ndash Investments

ndash Customer Service

Present scenario

bull 1 Enormous mismatch in global healthcare financing

bull 2 Developing countrieshave 84 of population amp 90 of disease burden

bull 3 By 2020 world population-75 billion

bull By 2050 world population 9 billion

bull Most of the growth in developing countries

bull 4 According to NHA of India 2001-02 sources of finance in health sector

bull Household 688

bull Central Govt 72

bull State Govt 144

bull Private Firms 3

bull Public Firms 2

bull External Funds 2

bull Local Govt 22

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

Origin And Growth Of Insurance Sector

In fiscal 2000-01 the Indian federal government lifted all entry restrictions for private sector investors

Foreign investment insurance market was also allowed with 26 percent cap

GIC was converted into Indias national reinsure From December2000

All the subsidiaries working under the GIC umbrella were restructured as independent insurance

companies

Origin And Growth Of Insurance Sector

Till end of FY 1999-2000 two state-run insurance companies namely Life Insurance Corporation (LIC)and General Insurance Corporation (GIC) were themonopoly insurance providers in India

Under GIC there were four subsidiariesndashNational Insurance Company Ltd ndashOriental Insurance Company Ltd ndashNew India Assurance Company Ltd ndashUnited India Assurance Company Ltd

Life Insurance Companies In India1 Bajaj Allianz Life Insurance Company Limited 2 Birla Sun Life Insurance Co Ltd 3 HDFC Standard Life Insurance Co Ltd 4 ICICI Prudential Life Insurance Co Ltd 5 ING Vysya Life Insurance Company Ltd 6 Life Insurance Corporation of India 7 Max New York Life Insurance Co Ltd 8 Met Life India Insurance Company Ltd 9 Kotak Mahindra Old Mutual Life Insurance Limited 10 SBI Life Insurance Co Ltd 11 Tata AIG Life Insurance Company Limited 12 Reliance Life Insurance Company Limited 13 Aviva Life Insurance Co India Pvt Ltd 14 Sahara India Life Insurance Co Ltd 15 Shriram Life Insurance Co Ltd 16 Bharti AXA Life Insurance Company Ltd 17 Future Generali Life Insurance Company Ltd 18 IDBI Fortis Life Insurance Company Ltd 19 Canara HSBC Oriental Bank of Commerce Life Insurance Co Ltd 20 AEGON Religare Life Insurance Company Limited 21 DLF Pramerica Life Insurance Co Ltd 22 Star Union Dai-ichi Life Insurance Comp Ltd

Non-Life Insurance companies in India

Bajaj Allianz General Insurance Co Ltd ICICI Lombard General Insurance Co Ltd IFFCO Tokyo General Insurance Co Ltd National Insurance Co Ltd New India Assurance Co Ltd Oriental Insurance Co Ltd Reliance General Insurance Co Ltd Royal Sundaram Alliance Insurance Co Ltd Tata AIG Life Insurance Co Ltd United India Insurance Co Ltd

Reinsurers General Insurance Corporation of India

MAJOR PLAYERS

LIC Products amp Plans

Life Insurance Corporation of India (LIC) was formed in

September 1956 by an Act of Parliament LIC Act 1956 with a

contribution of Rs 50 million

The then Finance Minister Mr C D Deshmukh while piloting the

bill for nationalization outlined the objectives of LIC thus ldquoTo

conduct the business with utmost economy with the spirit of

trusteeship to charge premium no higher than warranted by strict

actuarial considerations to invest the funds for obtaining maximum

yield for the policy holders consistent with safety of capital to

render prompt and efficient service to policy holders thereby

making Insurance widely popularrdquo

362014 35

LIC OF INDIA contdhellip

Presently the LIC has a network of seven zones 100 divisions and 2048branches personnel exceed seven lakhs employees and over six lakhsagents

Vision A trans-nationally competitive financial conglomerate ofsignificance to societies and Pride of India

Mission To explore and enhance the quality of the life of people throughfinancial security by providing products and services of aspiredattributes with competitive returns and by rendering resources foreconomic development

Values Caring and Courtesy Initiatives and Innovation Integrity andTransparency Quality and Returns Participation and Relationshipand Trustworthiness and Reliability

Culture Agility (quickness) Adaptability Collaboration CommitmentDiscipline Empowerment Sensitivity and Excellence

362014 36

LIC OF INDIA contdhellipObjectives

bull Spread Life Insurance widely and in particular to the rural areas

bull Maximise mobilization of peoplersquos savings by making insurance-

linked savings adequately attractive

bull Deployment of funds to the best of advantage of the investors as

well as the community as whole keeping in view national priorities

and obligations of attractive return

bull Conduct of business at most economy and with the full realisation

that the money belongs to the policyholders

bull Act as trustee of the insured public in their individual and collective

capacities

362014 37

INVESTMENT POLICY OF LICrsquos

362014 38

INVESTMENT POLICY OF LICrsquos

contdhellip

362014 39

1) LIC2) ICICI3) HDFC

MARKET SHARE

CURRENT SCENARIO

bullGrowing at the rate of 15-20 annuallybull75 population has no insurancebull Adds 7 to countryrsquos GDPbullLIC market share come down to 75 and private insurers increased over 24bullAnnuity or pension product have over 33 of marketbullUnity linked insurance scheme have monopoly

GENERAL INSURANCE CORPORATION (GIC)

bull Prior nationalization there were 68 Indian insurers (includingLIC) and 45 non-Indian insurers did the business

bull In Nov 1972 the general insurance business was nationalized bythe General Insurance Business (Nationalized) Act 1972(GIBNA) and vested in the hand of the GIC and its foursubsidiaries viz

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull GIC was incorporated as a holding company in 1992

bull General Insurance Business is completely owned by thegovernment

bull The paid up capital of GIC was fully subscribed by theGovernment and of four subsidiaries

bull It was controlled by a single organization with four subsidiaries

362014 43

G I C contdhellip

bull GICrsquos four subsidiaries

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull The Govt of India took over Control supervision and policy

making is with GIC

bull The premium income for GIC comes mainly through the obligatory

reinsurance premium on a quota share basis from subsidiaries on

their direct business in India (almost 20 of subsidiaries business

come to GIC)

362014 44

I R D A

362014 45

IRDArsquoS MISSION

To protect the interests of the policyholders to regulate promote

and ensure orderly growth of the insurance industry and for

matters connected therewith or incidental thereto

362014 46

Composition of Authority under IRDA Act 1999

As per the section 4 of IRDA Act 1999 Insurance Regulatory

and Development Authority (IRDA which was constituted by

an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

a a Chairman

b five whole-time members

c four part-time members

(all appointed by the Government of India)

Current Scenario

bull In 1993 Malhotra Committee was formed and several Insurance Reforms were made

ndash Redesigned the Structure

ndash Increased Competition

ndash Regulatory body (IRDA)

ndash Investments

ndash Customer Service

Present scenario

bull 1 Enormous mismatch in global healthcare financing

bull 2 Developing countrieshave 84 of population amp 90 of disease burden

bull 3 By 2020 world population-75 billion

bull By 2050 world population 9 billion

bull Most of the growth in developing countries

bull 4 According to NHA of India 2001-02 sources of finance in health sector

bull Household 688

bull Central Govt 72

bull State Govt 144

bull Private Firms 3

bull Public Firms 2

bull External Funds 2

bull Local Govt 22

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

Origin And Growth Of Insurance Sector

Till end of FY 1999-2000 two state-run insurance companies namely Life Insurance Corporation (LIC)and General Insurance Corporation (GIC) were themonopoly insurance providers in India

Under GIC there were four subsidiariesndashNational Insurance Company Ltd ndashOriental Insurance Company Ltd ndashNew India Assurance Company Ltd ndashUnited India Assurance Company Ltd

Life Insurance Companies In India1 Bajaj Allianz Life Insurance Company Limited 2 Birla Sun Life Insurance Co Ltd 3 HDFC Standard Life Insurance Co Ltd 4 ICICI Prudential Life Insurance Co Ltd 5 ING Vysya Life Insurance Company Ltd 6 Life Insurance Corporation of India 7 Max New York Life Insurance Co Ltd 8 Met Life India Insurance Company Ltd 9 Kotak Mahindra Old Mutual Life Insurance Limited 10 SBI Life Insurance Co Ltd 11 Tata AIG Life Insurance Company Limited 12 Reliance Life Insurance Company Limited 13 Aviva Life Insurance Co India Pvt Ltd 14 Sahara India Life Insurance Co Ltd 15 Shriram Life Insurance Co Ltd 16 Bharti AXA Life Insurance Company Ltd 17 Future Generali Life Insurance Company Ltd 18 IDBI Fortis Life Insurance Company Ltd 19 Canara HSBC Oriental Bank of Commerce Life Insurance Co Ltd 20 AEGON Religare Life Insurance Company Limited 21 DLF Pramerica Life Insurance Co Ltd 22 Star Union Dai-ichi Life Insurance Comp Ltd

Non-Life Insurance companies in India

Bajaj Allianz General Insurance Co Ltd ICICI Lombard General Insurance Co Ltd IFFCO Tokyo General Insurance Co Ltd National Insurance Co Ltd New India Assurance Co Ltd Oriental Insurance Co Ltd Reliance General Insurance Co Ltd Royal Sundaram Alliance Insurance Co Ltd Tata AIG Life Insurance Co Ltd United India Insurance Co Ltd

Reinsurers General Insurance Corporation of India

MAJOR PLAYERS

LIC Products amp Plans

Life Insurance Corporation of India (LIC) was formed in

September 1956 by an Act of Parliament LIC Act 1956 with a

contribution of Rs 50 million

The then Finance Minister Mr C D Deshmukh while piloting the

bill for nationalization outlined the objectives of LIC thus ldquoTo

conduct the business with utmost economy with the spirit of

trusteeship to charge premium no higher than warranted by strict

actuarial considerations to invest the funds for obtaining maximum

yield for the policy holders consistent with safety of capital to

render prompt and efficient service to policy holders thereby

making Insurance widely popularrdquo

362014 35

LIC OF INDIA contdhellip

Presently the LIC has a network of seven zones 100 divisions and 2048branches personnel exceed seven lakhs employees and over six lakhsagents

Vision A trans-nationally competitive financial conglomerate ofsignificance to societies and Pride of India

Mission To explore and enhance the quality of the life of people throughfinancial security by providing products and services of aspiredattributes with competitive returns and by rendering resources foreconomic development

Values Caring and Courtesy Initiatives and Innovation Integrity andTransparency Quality and Returns Participation and Relationshipand Trustworthiness and Reliability

Culture Agility (quickness) Adaptability Collaboration CommitmentDiscipline Empowerment Sensitivity and Excellence

362014 36

LIC OF INDIA contdhellipObjectives

bull Spread Life Insurance widely and in particular to the rural areas

bull Maximise mobilization of peoplersquos savings by making insurance-

linked savings adequately attractive

bull Deployment of funds to the best of advantage of the investors as

well as the community as whole keeping in view national priorities

and obligations of attractive return

bull Conduct of business at most economy and with the full realisation

that the money belongs to the policyholders

bull Act as trustee of the insured public in their individual and collective

capacities

362014 37

INVESTMENT POLICY OF LICrsquos

362014 38

INVESTMENT POLICY OF LICrsquos

contdhellip

362014 39

1) LIC2) ICICI3) HDFC

MARKET SHARE

CURRENT SCENARIO

bullGrowing at the rate of 15-20 annuallybull75 population has no insurancebull Adds 7 to countryrsquos GDPbullLIC market share come down to 75 and private insurers increased over 24bullAnnuity or pension product have over 33 of marketbullUnity linked insurance scheme have monopoly

GENERAL INSURANCE CORPORATION (GIC)

bull Prior nationalization there were 68 Indian insurers (includingLIC) and 45 non-Indian insurers did the business

bull In Nov 1972 the general insurance business was nationalized bythe General Insurance Business (Nationalized) Act 1972(GIBNA) and vested in the hand of the GIC and its foursubsidiaries viz

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull GIC was incorporated as a holding company in 1992

bull General Insurance Business is completely owned by thegovernment

bull The paid up capital of GIC was fully subscribed by theGovernment and of four subsidiaries

bull It was controlled by a single organization with four subsidiaries

362014 43

G I C contdhellip

bull GICrsquos four subsidiaries

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull The Govt of India took over Control supervision and policy

making is with GIC

bull The premium income for GIC comes mainly through the obligatory

reinsurance premium on a quota share basis from subsidiaries on

their direct business in India (almost 20 of subsidiaries business

come to GIC)

362014 44

I R D A

362014 45

IRDArsquoS MISSION

To protect the interests of the policyholders to regulate promote

and ensure orderly growth of the insurance industry and for

matters connected therewith or incidental thereto

362014 46

Composition of Authority under IRDA Act 1999

As per the section 4 of IRDA Act 1999 Insurance Regulatory

and Development Authority (IRDA which was constituted by

an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

a a Chairman

b five whole-time members

c four part-time members

(all appointed by the Government of India)

Current Scenario

bull In 1993 Malhotra Committee was formed and several Insurance Reforms were made

ndash Redesigned the Structure

ndash Increased Competition

ndash Regulatory body (IRDA)

ndash Investments

ndash Customer Service

Present scenario

bull 1 Enormous mismatch in global healthcare financing

bull 2 Developing countrieshave 84 of population amp 90 of disease burden

bull 3 By 2020 world population-75 billion

bull By 2050 world population 9 billion

bull Most of the growth in developing countries

bull 4 According to NHA of India 2001-02 sources of finance in health sector

bull Household 688

bull Central Govt 72

bull State Govt 144

bull Private Firms 3

bull Public Firms 2

bull External Funds 2

bull Local Govt 22

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

Life Insurance Companies In India1 Bajaj Allianz Life Insurance Company Limited 2 Birla Sun Life Insurance Co Ltd 3 HDFC Standard Life Insurance Co Ltd 4 ICICI Prudential Life Insurance Co Ltd 5 ING Vysya Life Insurance Company Ltd 6 Life Insurance Corporation of India 7 Max New York Life Insurance Co Ltd 8 Met Life India Insurance Company Ltd 9 Kotak Mahindra Old Mutual Life Insurance Limited 10 SBI Life Insurance Co Ltd 11 Tata AIG Life Insurance Company Limited 12 Reliance Life Insurance Company Limited 13 Aviva Life Insurance Co India Pvt Ltd 14 Sahara India Life Insurance Co Ltd 15 Shriram Life Insurance Co Ltd 16 Bharti AXA Life Insurance Company Ltd 17 Future Generali Life Insurance Company Ltd 18 IDBI Fortis Life Insurance Company Ltd 19 Canara HSBC Oriental Bank of Commerce Life Insurance Co Ltd 20 AEGON Religare Life Insurance Company Limited 21 DLF Pramerica Life Insurance Co Ltd 22 Star Union Dai-ichi Life Insurance Comp Ltd

Non-Life Insurance companies in India

Bajaj Allianz General Insurance Co Ltd ICICI Lombard General Insurance Co Ltd IFFCO Tokyo General Insurance Co Ltd National Insurance Co Ltd New India Assurance Co Ltd Oriental Insurance Co Ltd Reliance General Insurance Co Ltd Royal Sundaram Alliance Insurance Co Ltd Tata AIG Life Insurance Co Ltd United India Insurance Co Ltd

Reinsurers General Insurance Corporation of India

MAJOR PLAYERS

LIC Products amp Plans

Life Insurance Corporation of India (LIC) was formed in

September 1956 by an Act of Parliament LIC Act 1956 with a

contribution of Rs 50 million

The then Finance Minister Mr C D Deshmukh while piloting the

bill for nationalization outlined the objectives of LIC thus ldquoTo

conduct the business with utmost economy with the spirit of

trusteeship to charge premium no higher than warranted by strict

actuarial considerations to invest the funds for obtaining maximum

yield for the policy holders consistent with safety of capital to

render prompt and efficient service to policy holders thereby

making Insurance widely popularrdquo

362014 35

LIC OF INDIA contdhellip

Presently the LIC has a network of seven zones 100 divisions and 2048branches personnel exceed seven lakhs employees and over six lakhsagents

Vision A trans-nationally competitive financial conglomerate ofsignificance to societies and Pride of India

Mission To explore and enhance the quality of the life of people throughfinancial security by providing products and services of aspiredattributes with competitive returns and by rendering resources foreconomic development

Values Caring and Courtesy Initiatives and Innovation Integrity andTransparency Quality and Returns Participation and Relationshipand Trustworthiness and Reliability

Culture Agility (quickness) Adaptability Collaboration CommitmentDiscipline Empowerment Sensitivity and Excellence

362014 36

LIC OF INDIA contdhellipObjectives

bull Spread Life Insurance widely and in particular to the rural areas

bull Maximise mobilization of peoplersquos savings by making insurance-

linked savings adequately attractive

bull Deployment of funds to the best of advantage of the investors as

well as the community as whole keeping in view national priorities

and obligations of attractive return

bull Conduct of business at most economy and with the full realisation

that the money belongs to the policyholders

bull Act as trustee of the insured public in their individual and collective

capacities

362014 37

INVESTMENT POLICY OF LICrsquos

362014 38

INVESTMENT POLICY OF LICrsquos

contdhellip

362014 39

1) LIC2) ICICI3) HDFC

MARKET SHARE

CURRENT SCENARIO

bullGrowing at the rate of 15-20 annuallybull75 population has no insurancebull Adds 7 to countryrsquos GDPbullLIC market share come down to 75 and private insurers increased over 24bullAnnuity or pension product have over 33 of marketbullUnity linked insurance scheme have monopoly

GENERAL INSURANCE CORPORATION (GIC)

bull Prior nationalization there were 68 Indian insurers (includingLIC) and 45 non-Indian insurers did the business

bull In Nov 1972 the general insurance business was nationalized bythe General Insurance Business (Nationalized) Act 1972(GIBNA) and vested in the hand of the GIC and its foursubsidiaries viz

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull GIC was incorporated as a holding company in 1992

bull General Insurance Business is completely owned by thegovernment

bull The paid up capital of GIC was fully subscribed by theGovernment and of four subsidiaries

bull It was controlled by a single organization with four subsidiaries

362014 43

G I C contdhellip

bull GICrsquos four subsidiaries

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull The Govt of India took over Control supervision and policy

making is with GIC

bull The premium income for GIC comes mainly through the obligatory

reinsurance premium on a quota share basis from subsidiaries on

their direct business in India (almost 20 of subsidiaries business

come to GIC)

362014 44

I R D A

362014 45

IRDArsquoS MISSION

To protect the interests of the policyholders to regulate promote

and ensure orderly growth of the insurance industry and for

matters connected therewith or incidental thereto

362014 46

Composition of Authority under IRDA Act 1999

As per the section 4 of IRDA Act 1999 Insurance Regulatory

and Development Authority (IRDA which was constituted by

an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

a a Chairman

b five whole-time members

c four part-time members

(all appointed by the Government of India)

Current Scenario

bull In 1993 Malhotra Committee was formed and several Insurance Reforms were made

ndash Redesigned the Structure

ndash Increased Competition

ndash Regulatory body (IRDA)

ndash Investments

ndash Customer Service

Present scenario

bull 1 Enormous mismatch in global healthcare financing

bull 2 Developing countrieshave 84 of population amp 90 of disease burden

bull 3 By 2020 world population-75 billion

bull By 2050 world population 9 billion

bull Most of the growth in developing countries

bull 4 According to NHA of India 2001-02 sources of finance in health sector

bull Household 688

bull Central Govt 72

bull State Govt 144

bull Private Firms 3

bull Public Firms 2

bull External Funds 2

bull Local Govt 22

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

Non-Life Insurance companies in India

Bajaj Allianz General Insurance Co Ltd ICICI Lombard General Insurance Co Ltd IFFCO Tokyo General Insurance Co Ltd National Insurance Co Ltd New India Assurance Co Ltd Oriental Insurance Co Ltd Reliance General Insurance Co Ltd Royal Sundaram Alliance Insurance Co Ltd Tata AIG Life Insurance Co Ltd United India Insurance Co Ltd

Reinsurers General Insurance Corporation of India

MAJOR PLAYERS

LIC Products amp Plans

Life Insurance Corporation of India (LIC) was formed in

September 1956 by an Act of Parliament LIC Act 1956 with a

contribution of Rs 50 million

The then Finance Minister Mr C D Deshmukh while piloting the

bill for nationalization outlined the objectives of LIC thus ldquoTo

conduct the business with utmost economy with the spirit of

trusteeship to charge premium no higher than warranted by strict

actuarial considerations to invest the funds for obtaining maximum

yield for the policy holders consistent with safety of capital to

render prompt and efficient service to policy holders thereby

making Insurance widely popularrdquo

362014 35

LIC OF INDIA contdhellip

Presently the LIC has a network of seven zones 100 divisions and 2048branches personnel exceed seven lakhs employees and over six lakhsagents

Vision A trans-nationally competitive financial conglomerate ofsignificance to societies and Pride of India

Mission To explore and enhance the quality of the life of people throughfinancial security by providing products and services of aspiredattributes with competitive returns and by rendering resources foreconomic development

Values Caring and Courtesy Initiatives and Innovation Integrity andTransparency Quality and Returns Participation and Relationshipand Trustworthiness and Reliability

Culture Agility (quickness) Adaptability Collaboration CommitmentDiscipline Empowerment Sensitivity and Excellence

362014 36

LIC OF INDIA contdhellipObjectives

bull Spread Life Insurance widely and in particular to the rural areas

bull Maximise mobilization of peoplersquos savings by making insurance-

linked savings adequately attractive

bull Deployment of funds to the best of advantage of the investors as

well as the community as whole keeping in view national priorities

and obligations of attractive return

bull Conduct of business at most economy and with the full realisation

that the money belongs to the policyholders

bull Act as trustee of the insured public in their individual and collective

capacities

362014 37

INVESTMENT POLICY OF LICrsquos

362014 38

INVESTMENT POLICY OF LICrsquos

contdhellip

362014 39

1) LIC2) ICICI3) HDFC

MARKET SHARE

CURRENT SCENARIO

bullGrowing at the rate of 15-20 annuallybull75 population has no insurancebull Adds 7 to countryrsquos GDPbullLIC market share come down to 75 and private insurers increased over 24bullAnnuity or pension product have over 33 of marketbullUnity linked insurance scheme have monopoly

GENERAL INSURANCE CORPORATION (GIC)

bull Prior nationalization there were 68 Indian insurers (includingLIC) and 45 non-Indian insurers did the business

bull In Nov 1972 the general insurance business was nationalized bythe General Insurance Business (Nationalized) Act 1972(GIBNA) and vested in the hand of the GIC and its foursubsidiaries viz

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull GIC was incorporated as a holding company in 1992

bull General Insurance Business is completely owned by thegovernment

bull The paid up capital of GIC was fully subscribed by theGovernment and of four subsidiaries

bull It was controlled by a single organization with four subsidiaries

362014 43

G I C contdhellip

bull GICrsquos four subsidiaries

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull The Govt of India took over Control supervision and policy

making is with GIC

bull The premium income for GIC comes mainly through the obligatory

reinsurance premium on a quota share basis from subsidiaries on

their direct business in India (almost 20 of subsidiaries business

come to GIC)

362014 44

I R D A

362014 45

IRDArsquoS MISSION

To protect the interests of the policyholders to regulate promote

and ensure orderly growth of the insurance industry and for

matters connected therewith or incidental thereto

362014 46

Composition of Authority under IRDA Act 1999

As per the section 4 of IRDA Act 1999 Insurance Regulatory

and Development Authority (IRDA which was constituted by

an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

a a Chairman

b five whole-time members

c four part-time members

(all appointed by the Government of India)

Current Scenario

bull In 1993 Malhotra Committee was formed and several Insurance Reforms were made

ndash Redesigned the Structure

ndash Increased Competition

ndash Regulatory body (IRDA)

ndash Investments

ndash Customer Service

Present scenario

bull 1 Enormous mismatch in global healthcare financing

bull 2 Developing countrieshave 84 of population amp 90 of disease burden

bull 3 By 2020 world population-75 billion

bull By 2050 world population 9 billion

bull Most of the growth in developing countries

bull 4 According to NHA of India 2001-02 sources of finance in health sector

bull Household 688

bull Central Govt 72

bull State Govt 144

bull Private Firms 3

bull Public Firms 2

bull External Funds 2

bull Local Govt 22

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

MAJOR PLAYERS

LIC Products amp Plans

Life Insurance Corporation of India (LIC) was formed in

September 1956 by an Act of Parliament LIC Act 1956 with a

contribution of Rs 50 million

The then Finance Minister Mr C D Deshmukh while piloting the

bill for nationalization outlined the objectives of LIC thus ldquoTo

conduct the business with utmost economy with the spirit of

trusteeship to charge premium no higher than warranted by strict

actuarial considerations to invest the funds for obtaining maximum

yield for the policy holders consistent with safety of capital to

render prompt and efficient service to policy holders thereby

making Insurance widely popularrdquo

362014 35

LIC OF INDIA contdhellip

Presently the LIC has a network of seven zones 100 divisions and 2048branches personnel exceed seven lakhs employees and over six lakhsagents

Vision A trans-nationally competitive financial conglomerate ofsignificance to societies and Pride of India

Mission To explore and enhance the quality of the life of people throughfinancial security by providing products and services of aspiredattributes with competitive returns and by rendering resources foreconomic development

Values Caring and Courtesy Initiatives and Innovation Integrity andTransparency Quality and Returns Participation and Relationshipand Trustworthiness and Reliability

Culture Agility (quickness) Adaptability Collaboration CommitmentDiscipline Empowerment Sensitivity and Excellence

362014 36

LIC OF INDIA contdhellipObjectives

bull Spread Life Insurance widely and in particular to the rural areas

bull Maximise mobilization of peoplersquos savings by making insurance-

linked savings adequately attractive

bull Deployment of funds to the best of advantage of the investors as

well as the community as whole keeping in view national priorities

and obligations of attractive return

bull Conduct of business at most economy and with the full realisation

that the money belongs to the policyholders

bull Act as trustee of the insured public in their individual and collective

capacities

362014 37

INVESTMENT POLICY OF LICrsquos

362014 38

INVESTMENT POLICY OF LICrsquos

contdhellip

362014 39

1) LIC2) ICICI3) HDFC

MARKET SHARE

CURRENT SCENARIO

bullGrowing at the rate of 15-20 annuallybull75 population has no insurancebull Adds 7 to countryrsquos GDPbullLIC market share come down to 75 and private insurers increased over 24bullAnnuity or pension product have over 33 of marketbullUnity linked insurance scheme have monopoly

GENERAL INSURANCE CORPORATION (GIC)

bull Prior nationalization there were 68 Indian insurers (includingLIC) and 45 non-Indian insurers did the business

bull In Nov 1972 the general insurance business was nationalized bythe General Insurance Business (Nationalized) Act 1972(GIBNA) and vested in the hand of the GIC and its foursubsidiaries viz

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull GIC was incorporated as a holding company in 1992

bull General Insurance Business is completely owned by thegovernment

bull The paid up capital of GIC was fully subscribed by theGovernment and of four subsidiaries

bull It was controlled by a single organization with four subsidiaries

362014 43

G I C contdhellip

bull GICrsquos four subsidiaries

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull The Govt of India took over Control supervision and policy

making is with GIC

bull The premium income for GIC comes mainly through the obligatory

reinsurance premium on a quota share basis from subsidiaries on

their direct business in India (almost 20 of subsidiaries business

come to GIC)

362014 44

I R D A

362014 45

IRDArsquoS MISSION

To protect the interests of the policyholders to regulate promote

and ensure orderly growth of the insurance industry and for

matters connected therewith or incidental thereto

362014 46

Composition of Authority under IRDA Act 1999

As per the section 4 of IRDA Act 1999 Insurance Regulatory

and Development Authority (IRDA which was constituted by

an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

a a Chairman

b five whole-time members

c four part-time members

(all appointed by the Government of India)

Current Scenario

bull In 1993 Malhotra Committee was formed and several Insurance Reforms were made

ndash Redesigned the Structure

ndash Increased Competition

ndash Regulatory body (IRDA)

ndash Investments

ndash Customer Service

Present scenario

bull 1 Enormous mismatch in global healthcare financing

bull 2 Developing countrieshave 84 of population amp 90 of disease burden

bull 3 By 2020 world population-75 billion

bull By 2050 world population 9 billion

bull Most of the growth in developing countries

bull 4 According to NHA of India 2001-02 sources of finance in health sector

bull Household 688

bull Central Govt 72

bull State Govt 144

bull Private Firms 3

bull Public Firms 2

bull External Funds 2

bull Local Govt 22

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

LIC Products amp Plans

Life Insurance Corporation of India (LIC) was formed in

September 1956 by an Act of Parliament LIC Act 1956 with a

contribution of Rs 50 million

The then Finance Minister Mr C D Deshmukh while piloting the

bill for nationalization outlined the objectives of LIC thus ldquoTo

conduct the business with utmost economy with the spirit of

trusteeship to charge premium no higher than warranted by strict

actuarial considerations to invest the funds for obtaining maximum

yield for the policy holders consistent with safety of capital to

render prompt and efficient service to policy holders thereby

making Insurance widely popularrdquo

362014 35

LIC OF INDIA contdhellip

Presently the LIC has a network of seven zones 100 divisions and 2048branches personnel exceed seven lakhs employees and over six lakhsagents

Vision A trans-nationally competitive financial conglomerate ofsignificance to societies and Pride of India

Mission To explore and enhance the quality of the life of people throughfinancial security by providing products and services of aspiredattributes with competitive returns and by rendering resources foreconomic development

Values Caring and Courtesy Initiatives and Innovation Integrity andTransparency Quality and Returns Participation and Relationshipand Trustworthiness and Reliability

Culture Agility (quickness) Adaptability Collaboration CommitmentDiscipline Empowerment Sensitivity and Excellence

362014 36

LIC OF INDIA contdhellipObjectives

bull Spread Life Insurance widely and in particular to the rural areas

bull Maximise mobilization of peoplersquos savings by making insurance-

linked savings adequately attractive

bull Deployment of funds to the best of advantage of the investors as

well as the community as whole keeping in view national priorities

and obligations of attractive return

bull Conduct of business at most economy and with the full realisation

that the money belongs to the policyholders

bull Act as trustee of the insured public in their individual and collective

capacities

362014 37

INVESTMENT POLICY OF LICrsquos

362014 38

INVESTMENT POLICY OF LICrsquos

contdhellip

362014 39

1) LIC2) ICICI3) HDFC

MARKET SHARE

CURRENT SCENARIO

bullGrowing at the rate of 15-20 annuallybull75 population has no insurancebull Adds 7 to countryrsquos GDPbullLIC market share come down to 75 and private insurers increased over 24bullAnnuity or pension product have over 33 of marketbullUnity linked insurance scheme have monopoly

GENERAL INSURANCE CORPORATION (GIC)

bull Prior nationalization there were 68 Indian insurers (includingLIC) and 45 non-Indian insurers did the business

bull In Nov 1972 the general insurance business was nationalized bythe General Insurance Business (Nationalized) Act 1972(GIBNA) and vested in the hand of the GIC and its foursubsidiaries viz

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull GIC was incorporated as a holding company in 1992

bull General Insurance Business is completely owned by thegovernment

bull The paid up capital of GIC was fully subscribed by theGovernment and of four subsidiaries

bull It was controlled by a single organization with four subsidiaries

362014 43

G I C contdhellip

bull GICrsquos four subsidiaries

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull The Govt of India took over Control supervision and policy

making is with GIC

bull The premium income for GIC comes mainly through the obligatory

reinsurance premium on a quota share basis from subsidiaries on

their direct business in India (almost 20 of subsidiaries business

come to GIC)

362014 44

I R D A

362014 45

IRDArsquoS MISSION

To protect the interests of the policyholders to regulate promote

and ensure orderly growth of the insurance industry and for

matters connected therewith or incidental thereto

362014 46

Composition of Authority under IRDA Act 1999

As per the section 4 of IRDA Act 1999 Insurance Regulatory

and Development Authority (IRDA which was constituted by

an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

a a Chairman

b five whole-time members

c four part-time members

(all appointed by the Government of India)

Current Scenario

bull In 1993 Malhotra Committee was formed and several Insurance Reforms were made

ndash Redesigned the Structure

ndash Increased Competition

ndash Regulatory body (IRDA)

ndash Investments

ndash Customer Service

Present scenario

bull 1 Enormous mismatch in global healthcare financing

bull 2 Developing countrieshave 84 of population amp 90 of disease burden

bull 3 By 2020 world population-75 billion

bull By 2050 world population 9 billion

bull Most of the growth in developing countries

bull 4 According to NHA of India 2001-02 sources of finance in health sector

bull Household 688

bull Central Govt 72

bull State Govt 144

bull Private Firms 3

bull Public Firms 2

bull External Funds 2

bull Local Govt 22

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

Life Insurance Corporation of India (LIC) was formed in

September 1956 by an Act of Parliament LIC Act 1956 with a

contribution of Rs 50 million

The then Finance Minister Mr C D Deshmukh while piloting the

bill for nationalization outlined the objectives of LIC thus ldquoTo

conduct the business with utmost economy with the spirit of

trusteeship to charge premium no higher than warranted by strict

actuarial considerations to invest the funds for obtaining maximum

yield for the policy holders consistent with safety of capital to

render prompt and efficient service to policy holders thereby

making Insurance widely popularrdquo

362014 35

LIC OF INDIA contdhellip

Presently the LIC has a network of seven zones 100 divisions and 2048branches personnel exceed seven lakhs employees and over six lakhsagents

Vision A trans-nationally competitive financial conglomerate ofsignificance to societies and Pride of India

Mission To explore and enhance the quality of the life of people throughfinancial security by providing products and services of aspiredattributes with competitive returns and by rendering resources foreconomic development

Values Caring and Courtesy Initiatives and Innovation Integrity andTransparency Quality and Returns Participation and Relationshipand Trustworthiness and Reliability

Culture Agility (quickness) Adaptability Collaboration CommitmentDiscipline Empowerment Sensitivity and Excellence

362014 36

LIC OF INDIA contdhellipObjectives

bull Spread Life Insurance widely and in particular to the rural areas

bull Maximise mobilization of peoplersquos savings by making insurance-

linked savings adequately attractive

bull Deployment of funds to the best of advantage of the investors as

well as the community as whole keeping in view national priorities

and obligations of attractive return

bull Conduct of business at most economy and with the full realisation

that the money belongs to the policyholders

bull Act as trustee of the insured public in their individual and collective

capacities

362014 37

INVESTMENT POLICY OF LICrsquos

362014 38

INVESTMENT POLICY OF LICrsquos

contdhellip

362014 39

1) LIC2) ICICI3) HDFC

MARKET SHARE

CURRENT SCENARIO

bullGrowing at the rate of 15-20 annuallybull75 population has no insurancebull Adds 7 to countryrsquos GDPbullLIC market share come down to 75 and private insurers increased over 24bullAnnuity or pension product have over 33 of marketbullUnity linked insurance scheme have monopoly

GENERAL INSURANCE CORPORATION (GIC)

bull Prior nationalization there were 68 Indian insurers (includingLIC) and 45 non-Indian insurers did the business

bull In Nov 1972 the general insurance business was nationalized bythe General Insurance Business (Nationalized) Act 1972(GIBNA) and vested in the hand of the GIC and its foursubsidiaries viz

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull GIC was incorporated as a holding company in 1992

bull General Insurance Business is completely owned by thegovernment

bull The paid up capital of GIC was fully subscribed by theGovernment and of four subsidiaries

bull It was controlled by a single organization with four subsidiaries

362014 43

G I C contdhellip

bull GICrsquos four subsidiaries

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull The Govt of India took over Control supervision and policy

making is with GIC

bull The premium income for GIC comes mainly through the obligatory

reinsurance premium on a quota share basis from subsidiaries on

their direct business in India (almost 20 of subsidiaries business

come to GIC)

362014 44

I R D A

362014 45

IRDArsquoS MISSION

To protect the interests of the policyholders to regulate promote

and ensure orderly growth of the insurance industry and for

matters connected therewith or incidental thereto

362014 46

Composition of Authority under IRDA Act 1999

As per the section 4 of IRDA Act 1999 Insurance Regulatory

and Development Authority (IRDA which was constituted by

an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

a a Chairman

b five whole-time members

c four part-time members

(all appointed by the Government of India)

Current Scenario

bull In 1993 Malhotra Committee was formed and several Insurance Reforms were made

ndash Redesigned the Structure

ndash Increased Competition

ndash Regulatory body (IRDA)

ndash Investments

ndash Customer Service

Present scenario

bull 1 Enormous mismatch in global healthcare financing

bull 2 Developing countrieshave 84 of population amp 90 of disease burden

bull 3 By 2020 world population-75 billion

bull By 2050 world population 9 billion

bull Most of the growth in developing countries

bull 4 According to NHA of India 2001-02 sources of finance in health sector

bull Household 688

bull Central Govt 72

bull State Govt 144

bull Private Firms 3

bull Public Firms 2

bull External Funds 2

bull Local Govt 22

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

LIC OF INDIA contdhellip

Presently the LIC has a network of seven zones 100 divisions and 2048branches personnel exceed seven lakhs employees and over six lakhsagents

Vision A trans-nationally competitive financial conglomerate ofsignificance to societies and Pride of India

Mission To explore and enhance the quality of the life of people throughfinancial security by providing products and services of aspiredattributes with competitive returns and by rendering resources foreconomic development

Values Caring and Courtesy Initiatives and Innovation Integrity andTransparency Quality and Returns Participation and Relationshipand Trustworthiness and Reliability

Culture Agility (quickness) Adaptability Collaboration CommitmentDiscipline Empowerment Sensitivity and Excellence

362014 36

LIC OF INDIA contdhellipObjectives

bull Spread Life Insurance widely and in particular to the rural areas

bull Maximise mobilization of peoplersquos savings by making insurance-

linked savings adequately attractive

bull Deployment of funds to the best of advantage of the investors as

well as the community as whole keeping in view national priorities

and obligations of attractive return

bull Conduct of business at most economy and with the full realisation

that the money belongs to the policyholders

bull Act as trustee of the insured public in their individual and collective

capacities

362014 37

INVESTMENT POLICY OF LICrsquos

362014 38

INVESTMENT POLICY OF LICrsquos

contdhellip

362014 39

1) LIC2) ICICI3) HDFC

MARKET SHARE

CURRENT SCENARIO

bullGrowing at the rate of 15-20 annuallybull75 population has no insurancebull Adds 7 to countryrsquos GDPbullLIC market share come down to 75 and private insurers increased over 24bullAnnuity or pension product have over 33 of marketbullUnity linked insurance scheme have monopoly

GENERAL INSURANCE CORPORATION (GIC)

bull Prior nationalization there were 68 Indian insurers (includingLIC) and 45 non-Indian insurers did the business

bull In Nov 1972 the general insurance business was nationalized bythe General Insurance Business (Nationalized) Act 1972(GIBNA) and vested in the hand of the GIC and its foursubsidiaries viz

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull GIC was incorporated as a holding company in 1992

bull General Insurance Business is completely owned by thegovernment

bull The paid up capital of GIC was fully subscribed by theGovernment and of four subsidiaries

bull It was controlled by a single organization with four subsidiaries

362014 43

G I C contdhellip

bull GICrsquos four subsidiaries

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull The Govt of India took over Control supervision and policy

making is with GIC

bull The premium income for GIC comes mainly through the obligatory

reinsurance premium on a quota share basis from subsidiaries on

their direct business in India (almost 20 of subsidiaries business

come to GIC)

362014 44

I R D A

362014 45

IRDArsquoS MISSION

To protect the interests of the policyholders to regulate promote

and ensure orderly growth of the insurance industry and for

matters connected therewith or incidental thereto

362014 46

Composition of Authority under IRDA Act 1999

As per the section 4 of IRDA Act 1999 Insurance Regulatory

and Development Authority (IRDA which was constituted by

an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

a a Chairman

b five whole-time members

c four part-time members

(all appointed by the Government of India)

Current Scenario

bull In 1993 Malhotra Committee was formed and several Insurance Reforms were made

ndash Redesigned the Structure

ndash Increased Competition

ndash Regulatory body (IRDA)

ndash Investments

ndash Customer Service

Present scenario

bull 1 Enormous mismatch in global healthcare financing

bull 2 Developing countrieshave 84 of population amp 90 of disease burden

bull 3 By 2020 world population-75 billion

bull By 2050 world population 9 billion

bull Most of the growth in developing countries

bull 4 According to NHA of India 2001-02 sources of finance in health sector

bull Household 688

bull Central Govt 72

bull State Govt 144

bull Private Firms 3

bull Public Firms 2

bull External Funds 2

bull Local Govt 22

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

LIC OF INDIA contdhellipObjectives

bull Spread Life Insurance widely and in particular to the rural areas

bull Maximise mobilization of peoplersquos savings by making insurance-

linked savings adequately attractive

bull Deployment of funds to the best of advantage of the investors as

well as the community as whole keeping in view national priorities

and obligations of attractive return

bull Conduct of business at most economy and with the full realisation

that the money belongs to the policyholders

bull Act as trustee of the insured public in their individual and collective

capacities

362014 37

INVESTMENT POLICY OF LICrsquos

362014 38

INVESTMENT POLICY OF LICrsquos

contdhellip

362014 39

1) LIC2) ICICI3) HDFC

MARKET SHARE

CURRENT SCENARIO

bullGrowing at the rate of 15-20 annuallybull75 population has no insurancebull Adds 7 to countryrsquos GDPbullLIC market share come down to 75 and private insurers increased over 24bullAnnuity or pension product have over 33 of marketbullUnity linked insurance scheme have monopoly

GENERAL INSURANCE CORPORATION (GIC)

bull Prior nationalization there were 68 Indian insurers (includingLIC) and 45 non-Indian insurers did the business

bull In Nov 1972 the general insurance business was nationalized bythe General Insurance Business (Nationalized) Act 1972(GIBNA) and vested in the hand of the GIC and its foursubsidiaries viz

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull GIC was incorporated as a holding company in 1992

bull General Insurance Business is completely owned by thegovernment

bull The paid up capital of GIC was fully subscribed by theGovernment and of four subsidiaries

bull It was controlled by a single organization with four subsidiaries

362014 43

G I C contdhellip

bull GICrsquos four subsidiaries

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull The Govt of India took over Control supervision and policy

making is with GIC

bull The premium income for GIC comes mainly through the obligatory

reinsurance premium on a quota share basis from subsidiaries on

their direct business in India (almost 20 of subsidiaries business

come to GIC)

362014 44

I R D A

362014 45

IRDArsquoS MISSION

To protect the interests of the policyholders to regulate promote

and ensure orderly growth of the insurance industry and for

matters connected therewith or incidental thereto

362014 46

Composition of Authority under IRDA Act 1999

As per the section 4 of IRDA Act 1999 Insurance Regulatory

and Development Authority (IRDA which was constituted by

an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

a a Chairman

b five whole-time members

c four part-time members

(all appointed by the Government of India)

Current Scenario

bull In 1993 Malhotra Committee was formed and several Insurance Reforms were made

ndash Redesigned the Structure

ndash Increased Competition

ndash Regulatory body (IRDA)

ndash Investments

ndash Customer Service

Present scenario

bull 1 Enormous mismatch in global healthcare financing

bull 2 Developing countrieshave 84 of population amp 90 of disease burden

bull 3 By 2020 world population-75 billion

bull By 2050 world population 9 billion

bull Most of the growth in developing countries

bull 4 According to NHA of India 2001-02 sources of finance in health sector

bull Household 688

bull Central Govt 72

bull State Govt 144

bull Private Firms 3

bull Public Firms 2

bull External Funds 2

bull Local Govt 22

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

INVESTMENT POLICY OF LICrsquos

362014 38

INVESTMENT POLICY OF LICrsquos

contdhellip

362014 39

1) LIC2) ICICI3) HDFC

MARKET SHARE

CURRENT SCENARIO

bullGrowing at the rate of 15-20 annuallybull75 population has no insurancebull Adds 7 to countryrsquos GDPbullLIC market share come down to 75 and private insurers increased over 24bullAnnuity or pension product have over 33 of marketbullUnity linked insurance scheme have monopoly

GENERAL INSURANCE CORPORATION (GIC)

bull Prior nationalization there were 68 Indian insurers (includingLIC) and 45 non-Indian insurers did the business

bull In Nov 1972 the general insurance business was nationalized bythe General Insurance Business (Nationalized) Act 1972(GIBNA) and vested in the hand of the GIC and its foursubsidiaries viz

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull GIC was incorporated as a holding company in 1992

bull General Insurance Business is completely owned by thegovernment

bull The paid up capital of GIC was fully subscribed by theGovernment and of four subsidiaries

bull It was controlled by a single organization with four subsidiaries

362014 43

G I C contdhellip

bull GICrsquos four subsidiaries

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull The Govt of India took over Control supervision and policy

making is with GIC

bull The premium income for GIC comes mainly through the obligatory

reinsurance premium on a quota share basis from subsidiaries on

their direct business in India (almost 20 of subsidiaries business

come to GIC)

362014 44

I R D A

362014 45

IRDArsquoS MISSION

To protect the interests of the policyholders to regulate promote

and ensure orderly growth of the insurance industry and for

matters connected therewith or incidental thereto

362014 46

Composition of Authority under IRDA Act 1999

As per the section 4 of IRDA Act 1999 Insurance Regulatory

and Development Authority (IRDA which was constituted by

an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

a a Chairman

b five whole-time members

c four part-time members

(all appointed by the Government of India)

Current Scenario

bull In 1993 Malhotra Committee was formed and several Insurance Reforms were made

ndash Redesigned the Structure

ndash Increased Competition

ndash Regulatory body (IRDA)

ndash Investments

ndash Customer Service

Present scenario

bull 1 Enormous mismatch in global healthcare financing

bull 2 Developing countrieshave 84 of population amp 90 of disease burden

bull 3 By 2020 world population-75 billion

bull By 2050 world population 9 billion

bull Most of the growth in developing countries

bull 4 According to NHA of India 2001-02 sources of finance in health sector

bull Household 688

bull Central Govt 72

bull State Govt 144

bull Private Firms 3

bull Public Firms 2

bull External Funds 2

bull Local Govt 22

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

INVESTMENT POLICY OF LICrsquos

contdhellip

362014 39

1) LIC2) ICICI3) HDFC

MARKET SHARE

CURRENT SCENARIO

bullGrowing at the rate of 15-20 annuallybull75 population has no insurancebull Adds 7 to countryrsquos GDPbullLIC market share come down to 75 and private insurers increased over 24bullAnnuity or pension product have over 33 of marketbullUnity linked insurance scheme have monopoly

GENERAL INSURANCE CORPORATION (GIC)

bull Prior nationalization there were 68 Indian insurers (includingLIC) and 45 non-Indian insurers did the business

bull In Nov 1972 the general insurance business was nationalized bythe General Insurance Business (Nationalized) Act 1972(GIBNA) and vested in the hand of the GIC and its foursubsidiaries viz

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull GIC was incorporated as a holding company in 1992

bull General Insurance Business is completely owned by thegovernment

bull The paid up capital of GIC was fully subscribed by theGovernment and of four subsidiaries

bull It was controlled by a single organization with four subsidiaries

362014 43

G I C contdhellip

bull GICrsquos four subsidiaries

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull The Govt of India took over Control supervision and policy

making is with GIC

bull The premium income for GIC comes mainly through the obligatory

reinsurance premium on a quota share basis from subsidiaries on

their direct business in India (almost 20 of subsidiaries business

come to GIC)

362014 44

I R D A

362014 45

IRDArsquoS MISSION

To protect the interests of the policyholders to regulate promote

and ensure orderly growth of the insurance industry and for

matters connected therewith or incidental thereto

362014 46

Composition of Authority under IRDA Act 1999

As per the section 4 of IRDA Act 1999 Insurance Regulatory

and Development Authority (IRDA which was constituted by

an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

a a Chairman

b five whole-time members

c four part-time members

(all appointed by the Government of India)

Current Scenario

bull In 1993 Malhotra Committee was formed and several Insurance Reforms were made

ndash Redesigned the Structure

ndash Increased Competition

ndash Regulatory body (IRDA)

ndash Investments

ndash Customer Service

Present scenario

bull 1 Enormous mismatch in global healthcare financing

bull 2 Developing countrieshave 84 of population amp 90 of disease burden

bull 3 By 2020 world population-75 billion

bull By 2050 world population 9 billion

bull Most of the growth in developing countries

bull 4 According to NHA of India 2001-02 sources of finance in health sector

bull Household 688

bull Central Govt 72

bull State Govt 144

bull Private Firms 3

bull Public Firms 2

bull External Funds 2

bull Local Govt 22

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

1) LIC2) ICICI3) HDFC

MARKET SHARE

CURRENT SCENARIO

bullGrowing at the rate of 15-20 annuallybull75 population has no insurancebull Adds 7 to countryrsquos GDPbullLIC market share come down to 75 and private insurers increased over 24bullAnnuity or pension product have over 33 of marketbullUnity linked insurance scheme have monopoly

GENERAL INSURANCE CORPORATION (GIC)

bull Prior nationalization there were 68 Indian insurers (includingLIC) and 45 non-Indian insurers did the business

bull In Nov 1972 the general insurance business was nationalized bythe General Insurance Business (Nationalized) Act 1972(GIBNA) and vested in the hand of the GIC and its foursubsidiaries viz

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull GIC was incorporated as a holding company in 1992

bull General Insurance Business is completely owned by thegovernment

bull The paid up capital of GIC was fully subscribed by theGovernment and of four subsidiaries

bull It was controlled by a single organization with four subsidiaries

362014 43

G I C contdhellip

bull GICrsquos four subsidiaries

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull The Govt of India took over Control supervision and policy

making is with GIC

bull The premium income for GIC comes mainly through the obligatory

reinsurance premium on a quota share basis from subsidiaries on

their direct business in India (almost 20 of subsidiaries business

come to GIC)

362014 44

I R D A

362014 45

IRDArsquoS MISSION

To protect the interests of the policyholders to regulate promote

and ensure orderly growth of the insurance industry and for

matters connected therewith or incidental thereto

362014 46

Composition of Authority under IRDA Act 1999

As per the section 4 of IRDA Act 1999 Insurance Regulatory

and Development Authority (IRDA which was constituted by

an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

a a Chairman

b five whole-time members

c four part-time members

(all appointed by the Government of India)

Current Scenario

bull In 1993 Malhotra Committee was formed and several Insurance Reforms were made

ndash Redesigned the Structure

ndash Increased Competition

ndash Regulatory body (IRDA)

ndash Investments

ndash Customer Service

Present scenario

bull 1 Enormous mismatch in global healthcare financing

bull 2 Developing countrieshave 84 of population amp 90 of disease burden

bull 3 By 2020 world population-75 billion

bull By 2050 world population 9 billion

bull Most of the growth in developing countries

bull 4 According to NHA of India 2001-02 sources of finance in health sector

bull Household 688

bull Central Govt 72

bull State Govt 144

bull Private Firms 3

bull Public Firms 2

bull External Funds 2

bull Local Govt 22

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

MARKET SHARE

CURRENT SCENARIO

bullGrowing at the rate of 15-20 annuallybull75 population has no insurancebull Adds 7 to countryrsquos GDPbullLIC market share come down to 75 and private insurers increased over 24bullAnnuity or pension product have over 33 of marketbullUnity linked insurance scheme have monopoly

GENERAL INSURANCE CORPORATION (GIC)

bull Prior nationalization there were 68 Indian insurers (includingLIC) and 45 non-Indian insurers did the business

bull In Nov 1972 the general insurance business was nationalized bythe General Insurance Business (Nationalized) Act 1972(GIBNA) and vested in the hand of the GIC and its foursubsidiaries viz

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull GIC was incorporated as a holding company in 1992

bull General Insurance Business is completely owned by thegovernment

bull The paid up capital of GIC was fully subscribed by theGovernment and of four subsidiaries

bull It was controlled by a single organization with four subsidiaries

362014 43

G I C contdhellip

bull GICrsquos four subsidiaries

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull The Govt of India took over Control supervision and policy

making is with GIC

bull The premium income for GIC comes mainly through the obligatory

reinsurance premium on a quota share basis from subsidiaries on

their direct business in India (almost 20 of subsidiaries business

come to GIC)

362014 44

I R D A

362014 45

IRDArsquoS MISSION

To protect the interests of the policyholders to regulate promote

and ensure orderly growth of the insurance industry and for

matters connected therewith or incidental thereto

362014 46

Composition of Authority under IRDA Act 1999

As per the section 4 of IRDA Act 1999 Insurance Regulatory

and Development Authority (IRDA which was constituted by

an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

a a Chairman

b five whole-time members

c four part-time members

(all appointed by the Government of India)

Current Scenario

bull In 1993 Malhotra Committee was formed and several Insurance Reforms were made

ndash Redesigned the Structure

ndash Increased Competition

ndash Regulatory body (IRDA)

ndash Investments

ndash Customer Service

Present scenario

bull 1 Enormous mismatch in global healthcare financing

bull 2 Developing countrieshave 84 of population amp 90 of disease burden

bull 3 By 2020 world population-75 billion

bull By 2050 world population 9 billion

bull Most of the growth in developing countries

bull 4 According to NHA of India 2001-02 sources of finance in health sector

bull Household 688

bull Central Govt 72

bull State Govt 144

bull Private Firms 3

bull Public Firms 2

bull External Funds 2

bull Local Govt 22

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

CURRENT SCENARIO

bullGrowing at the rate of 15-20 annuallybull75 population has no insurancebull Adds 7 to countryrsquos GDPbullLIC market share come down to 75 and private insurers increased over 24bullAnnuity or pension product have over 33 of marketbullUnity linked insurance scheme have monopoly

GENERAL INSURANCE CORPORATION (GIC)

bull Prior nationalization there were 68 Indian insurers (includingLIC) and 45 non-Indian insurers did the business

bull In Nov 1972 the general insurance business was nationalized bythe General Insurance Business (Nationalized) Act 1972(GIBNA) and vested in the hand of the GIC and its foursubsidiaries viz

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull GIC was incorporated as a holding company in 1992

bull General Insurance Business is completely owned by thegovernment

bull The paid up capital of GIC was fully subscribed by theGovernment and of four subsidiaries

bull It was controlled by a single organization with four subsidiaries

362014 43

G I C contdhellip

bull GICrsquos four subsidiaries

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull The Govt of India took over Control supervision and policy

making is with GIC

bull The premium income for GIC comes mainly through the obligatory

reinsurance premium on a quota share basis from subsidiaries on

their direct business in India (almost 20 of subsidiaries business

come to GIC)

362014 44

I R D A

362014 45

IRDArsquoS MISSION

To protect the interests of the policyholders to regulate promote

and ensure orderly growth of the insurance industry and for

matters connected therewith or incidental thereto

362014 46

Composition of Authority under IRDA Act 1999

As per the section 4 of IRDA Act 1999 Insurance Regulatory

and Development Authority (IRDA which was constituted by

an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

a a Chairman

b five whole-time members

c four part-time members

(all appointed by the Government of India)

Current Scenario

bull In 1993 Malhotra Committee was formed and several Insurance Reforms were made

ndash Redesigned the Structure

ndash Increased Competition

ndash Regulatory body (IRDA)

ndash Investments

ndash Customer Service

Present scenario

bull 1 Enormous mismatch in global healthcare financing

bull 2 Developing countrieshave 84 of population amp 90 of disease burden

bull 3 By 2020 world population-75 billion

bull By 2050 world population 9 billion

bull Most of the growth in developing countries

bull 4 According to NHA of India 2001-02 sources of finance in health sector

bull Household 688

bull Central Govt 72

bull State Govt 144

bull Private Firms 3

bull Public Firms 2

bull External Funds 2

bull Local Govt 22

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

GENERAL INSURANCE CORPORATION (GIC)

bull Prior nationalization there were 68 Indian insurers (includingLIC) and 45 non-Indian insurers did the business

bull In Nov 1972 the general insurance business was nationalized bythe General Insurance Business (Nationalized) Act 1972(GIBNA) and vested in the hand of the GIC and its foursubsidiaries viz

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull GIC was incorporated as a holding company in 1992

bull General Insurance Business is completely owned by thegovernment

bull The paid up capital of GIC was fully subscribed by theGovernment and of four subsidiaries

bull It was controlled by a single organization with four subsidiaries

362014 43

G I C contdhellip

bull GICrsquos four subsidiaries

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull The Govt of India took over Control supervision and policy

making is with GIC

bull The premium income for GIC comes mainly through the obligatory

reinsurance premium on a quota share basis from subsidiaries on

their direct business in India (almost 20 of subsidiaries business

come to GIC)

362014 44

I R D A

362014 45

IRDArsquoS MISSION

To protect the interests of the policyholders to regulate promote

and ensure orderly growth of the insurance industry and for

matters connected therewith or incidental thereto

362014 46

Composition of Authority under IRDA Act 1999

As per the section 4 of IRDA Act 1999 Insurance Regulatory

and Development Authority (IRDA which was constituted by

an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

a a Chairman

b five whole-time members

c four part-time members

(all appointed by the Government of India)

Current Scenario

bull In 1993 Malhotra Committee was formed and several Insurance Reforms were made

ndash Redesigned the Structure

ndash Increased Competition

ndash Regulatory body (IRDA)

ndash Investments

ndash Customer Service

Present scenario

bull 1 Enormous mismatch in global healthcare financing

bull 2 Developing countrieshave 84 of population amp 90 of disease burden

bull 3 By 2020 world population-75 billion

bull By 2050 world population 9 billion

bull Most of the growth in developing countries

bull 4 According to NHA of India 2001-02 sources of finance in health sector

bull Household 688

bull Central Govt 72

bull State Govt 144

bull Private Firms 3

bull Public Firms 2

bull External Funds 2

bull Local Govt 22

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

G I C contdhellip

bull GICrsquos four subsidiaries

1 National Insurance Co Ltd

2 New India Assurance Co Ltd

3 Oriental Fire and General Insurance Co Ltd and

4 United India Insurance Co Ltd

bull The Govt of India took over Control supervision and policy

making is with GIC

bull The premium income for GIC comes mainly through the obligatory

reinsurance premium on a quota share basis from subsidiaries on

their direct business in India (almost 20 of subsidiaries business

come to GIC)

362014 44

I R D A

362014 45

IRDArsquoS MISSION

To protect the interests of the policyholders to regulate promote

and ensure orderly growth of the insurance industry and for

matters connected therewith or incidental thereto

362014 46

Composition of Authority under IRDA Act 1999

As per the section 4 of IRDA Act 1999 Insurance Regulatory

and Development Authority (IRDA which was constituted by

an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

a a Chairman

b five whole-time members

c four part-time members

(all appointed by the Government of India)

Current Scenario

bull In 1993 Malhotra Committee was formed and several Insurance Reforms were made

ndash Redesigned the Structure

ndash Increased Competition

ndash Regulatory body (IRDA)

ndash Investments

ndash Customer Service

Present scenario

bull 1 Enormous mismatch in global healthcare financing

bull 2 Developing countrieshave 84 of population amp 90 of disease burden

bull 3 By 2020 world population-75 billion

bull By 2050 world population 9 billion

bull Most of the growth in developing countries

bull 4 According to NHA of India 2001-02 sources of finance in health sector

bull Household 688

bull Central Govt 72

bull State Govt 144

bull Private Firms 3

bull Public Firms 2

bull External Funds 2

bull Local Govt 22

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

I R D A

362014 45

IRDArsquoS MISSION

To protect the interests of the policyholders to regulate promote

and ensure orderly growth of the insurance industry and for

matters connected therewith or incidental thereto

362014 46

Composition of Authority under IRDA Act 1999

As per the section 4 of IRDA Act 1999 Insurance Regulatory

and Development Authority (IRDA which was constituted by

an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

a a Chairman

b five whole-time members

c four part-time members

(all appointed by the Government of India)

Current Scenario

bull In 1993 Malhotra Committee was formed and several Insurance Reforms were made

ndash Redesigned the Structure

ndash Increased Competition

ndash Regulatory body (IRDA)

ndash Investments

ndash Customer Service

Present scenario

bull 1 Enormous mismatch in global healthcare financing

bull 2 Developing countrieshave 84 of population amp 90 of disease burden

bull 3 By 2020 world population-75 billion

bull By 2050 world population 9 billion

bull Most of the growth in developing countries

bull 4 According to NHA of India 2001-02 sources of finance in health sector

bull Household 688

bull Central Govt 72

bull State Govt 144

bull Private Firms 3

bull Public Firms 2

bull External Funds 2

bull Local Govt 22

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

IRDArsquoS MISSION

To protect the interests of the policyholders to regulate promote

and ensure orderly growth of the insurance industry and for

matters connected therewith or incidental thereto

362014 46

Composition of Authority under IRDA Act 1999

As per the section 4 of IRDA Act 1999 Insurance Regulatory

and Development Authority (IRDA which was constituted by

an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

a a Chairman

b five whole-time members

c four part-time members

(all appointed by the Government of India)

Current Scenario

bull In 1993 Malhotra Committee was formed and several Insurance Reforms were made

ndash Redesigned the Structure

ndash Increased Competition

ndash Regulatory body (IRDA)

ndash Investments

ndash Customer Service

Present scenario

bull 1 Enormous mismatch in global healthcare financing

bull 2 Developing countrieshave 84 of population amp 90 of disease burden

bull 3 By 2020 world population-75 billion

bull By 2050 world population 9 billion

bull Most of the growth in developing countries

bull 4 According to NHA of India 2001-02 sources of finance in health sector

bull Household 688

bull Central Govt 72

bull State Govt 144

bull Private Firms 3

bull Public Firms 2

bull External Funds 2

bull Local Govt 22

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

Current Scenario

bull In 1993 Malhotra Committee was formed and several Insurance Reforms were made

ndash Redesigned the Structure

ndash Increased Competition

ndash Regulatory body (IRDA)

ndash Investments

ndash Customer Service

Present scenario

bull 1 Enormous mismatch in global healthcare financing

bull 2 Developing countrieshave 84 of population amp 90 of disease burden

bull 3 By 2020 world population-75 billion

bull By 2050 world population 9 billion

bull Most of the growth in developing countries

bull 4 According to NHA of India 2001-02 sources of finance in health sector

bull Household 688

bull Central Govt 72

bull State Govt 144

bull Private Firms 3

bull Public Firms 2

bull External Funds 2

bull Local Govt 22

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

Present scenario

bull 1 Enormous mismatch in global healthcare financing

bull 2 Developing countrieshave 84 of population amp 90 of disease burden

bull 3 By 2020 world population-75 billion

bull By 2050 world population 9 billion

bull Most of the growth in developing countries

bull 4 According to NHA of India 2001-02 sources of finance in health sector

bull Household 688

bull Central Govt 72

bull State Govt 144

bull Private Firms 3

bull Public Firms 2

bull External Funds 2

bull Local Govt 22

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

(continued)

bull Govt spending on health care of GDP 09

bull Private spending 4 to 45 of GDP

bull Overall Out of Pocket Expense 80

bull (incentivises supplier induced demand)

bull In Bihar amp UP it is 90

bull NSS (1995-96) showed that rich consumed public service 3 times gt the poor

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

Comparison of risk pooling and

equity of financing methods

Financing method Risk pooling Equity

General revenue Widest risk pooling Most equitable

Social insurance Within the covered

population

Redistributive within

the covered

population

Private insurance

Group Within a group Redistributive within

a group

Individual Within an agesex group Not equitable

Community Financing Within a community Redistribution within

a community

User fees No risk pooling Not equitable

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

CONCLUSION

bull Growth of Indian economy is an investment

driven growth

bull Opens a wide variety of investment

avenues

bull Companies help to gain knowledge of

products and services

bull Achieve a better standard for near future life

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

(continued)

REASONS- Unable to take treatment

Mostly illiterate and poor

First priority is food Rest later

Prefer traditional local home made remedies

Public facilities

a far from reach ndash distance and

b if managed to reach ndash poor quality treatment

c to purchase medicines etc from out side

Canrsquot afford high treatment cost in Pvt Hosp

Borrowing money sale of propertyndashmake them poorer

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

Market Statistics

Life Insurance Funds accounts to 15 of household Savings amp may grow upto 20 in future

Insurance Penetration in India is 26 of GDP compared to Korea(677) amp Singapore(638)

India is ranked 19th position in Insurance with a growth of 19 pa

Non Life Insurance have lower penetration and rural people needs awareness

620 tn rupees investment is anticipated for infrastructure development in future

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

Strategic Policies

bull Identification of Markets

bull Assessment of Risks

bull Penetration and exploitation of markets

bull control over investment and operating costs

bull Finding best prospects

bull Newer Marketing Strategies

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

SWOT analysis

Strengths

bullStrong capital and reserve

bullTechnically Skilled Manpower

bullInnovative product for different demography

Weakness

bullHigh administration amp management expenses

bullVertical organisational structure

bullLower Reliability on Pvt Players

Opportunities

bullInflow of global managerial amp financial expertise

bullLiberalization results to wider choices

bullIntroduce global innovations and practises

Threats

bullCut-throat competition

bullNew Entrants

bullcustomers switching to other company

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

Conclusion

bull Today most of the insurance companies are recruiting agents who are professionals who can sell their unsought insurance products

bull Companies also provide better policies based on customer needs and demands

bull In this Competitive market companies provide better service Quality Pricing Advertisement and Promotional activities

bull CRM is used to retain the customers and communicate with them

bull 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 LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan

Aviva Life Insurance Company India LimitedLife Shield

AEGON Religare Life Insurance Company LimitedDecreasing Term PlanIncreasing Term PlanLevel Term Plan

Birla Sun Life Insurance Co LtdBirla Sun Life Insurance Premium Back Term PlanBirla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company LtdSecure Confident

Bajaj Allianz Life Insurance Company LimitedProtectorNew Risk CareTerm Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company LtdING Term Life PlusING Term Life

ICICI Prudential Life Insurance Co LtdLife Guard Return of PremiumLife Guard Regular PremiumHome Assure Loan cover term insuranceLife Guard Single Premium

IDBI Fortis Life Insurance Company LtdHome Assurance

Kotak Mahindra Old Mutual Life Insurance LimitedKotak Premium Return PlanKotak Term Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance PolicyMortgage RedemptionNew Bima GoldTwo Year Temporary Assurance PolicyAnmol Jeevan-IAmulya Jeevan-I

Max New York Life Insurance Co LtdFive Yr Renewable and Convertible Plan (Non - Par)

Level Term Plan

Met Life India Insurance Company LtdMET Suraksha - TROPMET SurakshaMet -MortgageMet-Mortgage Protector

Reliance Life Insurance Company LimitedReliance Simple Term PlanReliance Special Credit Guardian PlanReliance Special Term PlanReliance Credit Guardian Plan

Sahara India Life Insurance Co LtdSahara Kavach

Shriram Life Insurance Co LtdShri Suraksha

SBI Life Insurance Co LtdSBI SwadhanSBI Shield

Tata AIG Life Insurance Company LimitedTata AIG Life LifePlusTata AIG Life Raksha 10152025Tata AIG Life Assure

HDFC Standard Life Insurance Co LtdLoan Cover Term Assurance PlanTerm Assurance PlanHome Loan Protection Plan