grp2 insurance sector

8/3/2019 Grp2 Insurance Sector

1/19

Presentation on

Insurance Sector

Mentor : Ms Priyanka Chaudhary

Presented By:

Ajay Kumar (06)Ajit Kumar (07)Amandeep Kaur (08)Anant Sharma (09)

MBA 2nd Sem.

Delhi School of ManagementDelhi Technological University, Delhi , India 1


2/19

Agenda

Introduction Origin & growth

Reforms in India

Modern SWOT

Future

Emerging areas

Career Opportunities

Delhi School of ManagementDelhi Technological University ,Delhi , India 2


3/19

Delhi School of ManagementDelhi Technological University ,Delhi , India

Insurance

In law and economics, insurance is a form ofrisk management primarily used

to hedge against the risk of acontingent, uncertain loss.

Also defined as the equitable transfer of the

risk of a loss, from one entity to another, inexchange for payment.

3


4/19

INTRODUCTION

Insurance = Collective bearing of Risk.

Basic Human trait is to be averse tothe idea of risk taking.

Insurance, whether life or non-life,provides people with a reasonable

degree of security and assurance that

they will be protected in the event of acalamity or failure of any sort.



5/19

5 environmental variables thataffect all industries-

Customers Competitors Government Technology and Globalization -are forcing rapid changes in the service

sector.

In addition, there are 4 factors of particular importance toservice providers :

change in how quality is perceived cost control customer services and the new definitions of the customer.



6/19

ORIGIN AND GROWTH OFINSURANCE SECTOR: In India, insurance has a deep-rooted history. It

finds mention in the writings of Manu( Manusmrithi), Yagnavalkya (Dharmasastra)and Kautilya ( Arthasastra). The writings talk interms of pooling of resources that could be re-

distributed in times of calamities such as fire,floods, epidemics and famine.

Insurance in modern form originated in theMediterranean during the 13th century. (The

earliest references to insurance- found inBabylonia, the Greeks and the Romans).

Marine insurance is the oldest form of insurancefollowed by life insurance and fire insurance.

Delhi School of Management ,Delhi Technological University ,Delhi , India 6


7/19

Contd:

Oriental life Insurance Company atCalcutta in 1818, Bombay LifeAssurance Company in 1823

Triton Insurance Company for General

Insurance in 1850.176 insurance companies by 1938.

Insurance regulation formally began in

India through the passing of two actsthe Life Insurance companies Act of 1912

andthe Provident Fund Act of 1912.



8/19

Contd:

The business of India Insurance grew at afaster pace as competition amongst theIndian companies intensified.

The decision of nationalization of lifeinsurance business took place in 1956 when245 Indian and foreign insurance providentsocieties were first merged and thennationalized.

It paved the way towards the establishment ofone nationalized monopoly corporation calledLife Insurance Corporation (LIC)



9/19

Contd:

Nationalization was justified on thegrounds that it would create the muchneeded funds for rapid industrializationand self-reliance in heavy industries.

General Insurance followed suit and 1968;The Insurance Act was amended to allow forsocial control over the general insurancebusiness.

Subsequently in 1973, non-life insurancebusiness was nationalized and the GeneralInsurance Business (Nationalization) Act,

1972 was promulgated.Delhi School of ManagementDelhi Technological University ,Delhi , India 9


10/19

Reforms in the insurance sector:

1993, Malhotra Committee, led by formerGovernor of RBI

Objective: to complement the reforms

initiated in the financial sector

Recommendations (1994) :

Private sector be permitted to enter theinsurance industry.Foreign companies be allowed to enter by

floating Indian companies, preferably a jointventure with Indian partners.



11/19

Today:

24 general insurance 23 life insurance companies The insurance sector colossal one (US$41 billion) World's fifth largest life insurance market with Growth

rate of 15-20%.

Together with banking services, insurance services addabout 7% to the countrys GDP.

A well-developed and evolved insurance sector :

A boon for economic development as it provides long-term funds for infrastructure development at the sametime strengthening the risk taking ability of the country.



12/19

Authorities IAI (for actuaries)

III (for agents, brokers 3rd party administrators)

IIISLA (for surveyors and loss assessors).

TAC (sole data repository for non-life industry)

IBAI (voice for brokers)

GI Council & LI Council (platforms for insurers)

AIGIEA, AIIEA, AIIEF, AILICEF, AILIEA, FLICOA, GIEAIA, GIEUand NFIFWIcater to the employees of the insurers.


SWOT A l i I


13/19

SWOT Analysis - Insurancesector



14/19

Contributors:

Life Insurers Non-Life InsurersAllianz Bajaj Life Insurance Co. Ltd. Birla Sun Life Insurance Co. Ltd.HDFC Standard Life Insurance Co. Ltd.ICICI Prudential Life Insurance Co. Ltd.ING Vysya Life Insurance Co. Pvt. Ltd.Life Insurance Corporation of India.Max New York Life Insurance Co. Ltd.SBI Life Insurance Co. Ltd.Tata AIG Life Insurance Co. Ltd.

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.Tata AIG Life Insurance Co. Ltd.United India Insurance Co. Ltd



15/19

FUTURE OF THE SECTOR:

Indian insurance sector is likely to registerunprecedented growth of 200% and attain a size of Rs.2000 billion by 2009-10

A private sector insurance business will achieve a

growth rate of 140% as a result of aggressive marketingtechnique being adopted by them against 35-40%growth rate of state owned insurance companies.

In rural markets, the share of private insurance playerswould increase substantially as these have been able to

generate a faith among their rural consumers.

2010 - 2015 projected to be the 'Golden Age' for theIndian insurance industry.



16/19

Career Prospects:



17/19

INSURANCE SECTOR EMERGINGAREAS:

Demand for Pension PlansTwo relatively modern trends affect life insurance business in India

significantly: Joint Family System and

elderly are increasingly having to fend for themselves

Separateness of Banking and Insurance Bancassurance

Role of Information Techno-logy

Using Postal Network

Creating Insurance awareness

Innovative Products



18/19

References:

Insurance Sector in India: Towardsthe 2020 Vision by Tapen Sinha,Swiss Re Visiting Professor, IIRM

http://www.irda.gov.in

http://www.irda.gov.in/http://www.irda.gov.in/


19/19

Thank You..!!!!!!

Delhi School of ManagementDelhi Technological University Delhi India 19

grp2 insurance sector

Documents