Insurance Sector In India

For securing you from risks

PRESENTED BY- Manish Chauhan

INTRODUCTION –WHAT IS INSURANCE ?

Insurance Is A Means Of Protection From Financial Loss. It Is A Form Of Risk Management Primarily Used To Hedge Against The Risk Of A Contingent, Uncertain Loss.

Or An Arrangement By Which A Company Or The State

Undertakes To Provide A Guarantee Of Compensation For Specified Loss, Damage, Illness, Or Death In Return For Payment Of A Specified Premium.

TYPES OF INSURANCEINSURANCE

LIFE INSURANCE

ProtectionPlans

Saving Plans

Investment plans Retirement plans

Group plans

Children’s Plan

GENERAL INSURANCE

FireInsurance Marine Insurance

Health Insurance Motor vehicle Insurance

MAIN DIFFERENCE B/W LIFE INSURANCE & GENERAL INSURANCE Life Is Very Long-term In Nature — Life Insurance

Can Cover Risks Over Many Decades.

General Insurance Cover Risks Usually For A Shorter Period, Such As One Year.

EVOLUTION OF INSURANCE SECTOR IN INDIA Some of the important milestones in the life insurance business in

India are:

1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business.

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

CONTINUED…. 1956: 245 Indian and foreign insurers and provident societies are

taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs 5 core from the Government of India.

Similarly, in 1972, 107 general insurers were nationalized through the passing of General Insurance Business (Nationalization) Act, 1972.

The existing 107 insurers were amalgamated and grouped into Five companies, viz., National Insurance Company (NIC), New India Assurance Company (NIAC), Oriental Insurance Company (OIC), United India Insurance Company (UIIC), and General Insurance Corporation (GIC).

Then insurance industry transformed into monopoly and Oligopolistic state or public sector insurance industry in India.

REGULATORY BODY Insurance Regulatory & Development Authority Of

India(IRDAI) is the controlling and regulatory apex body in the country for insurance sector and its chairman and members are appointed by Government of India. IRDA’s HQ is located at Hyderabad. It was constituted as a body to regulate and develop the insurance industry in 1999, and was incorporated as a statutory body in April, 2000.

The Key objectives of IRDAI is promotion of competition to satisfy customer choice with lower premiums. The IRDA opened up market in August 2000.

Foreign companies were allowed ownership up to 26%.

ROLE OF IRDAI Protecting the interest of policyholders. Establishing guidelines for the operations of

insurers, and brokers. Specifying the code of conduct, qualifications,

and training for insurance intermediaries and agents.

Promoting efficiency in the conduct of insurance business.

Regulating the investment of funds by insurance companies.

LIST OF INSURANCE COMPANIES IN INDIA Public Sector : National Insurance Co Ltd New India Assurance Co Ltd Oriental Insurance Co Ltd United India Insurance Co Ltd

Private Sector BAJAJ ALLIANZ GENERAL INSURANCE ICICI LOMBARD L & T General Insurance TATA AIG GENERAL IFFCO TOKIO

MAJOR PLAYERS IN LIFE INSURANCE COMPANIES

1.Bajaj Allianz Life Insurance Company Ltd 2.Birla Sun Life Insurance Company Ltd 3.HDFC Standard Life Insurance Company Ltd 4.ICICI Prudential Life Insurance Company Ltd 5.Max New York Life Insurance Company Ltd

6.SBI Life Insurance Company Ltd 7.Tata AIG Life Insurance Company Ltd 8.Reliance Life Insurance Company Ltd

9.Kodak Life Insurance Company Ltd 10.Bharti AXA Life Insurance Company Ltd

MAJOR PLAYERS IN GENERAL INSURANCE COMPANIES

1.Bajaj Allianz General Insurance Company Ltd.2.Icici Lombard General Insurance Company Ltd.3.Reliance General Insurance Company Ltd.4.Bharti AXA General Insurance Company ltd.5.SBI General Insurance Company Ltd.6.L & T General Insurance Company Ltd.7.Tata AIG General Insurance Company Ltd.8.Agriculture Insurance Company Of India Ltd.

GROWTH OF INSURANCE SECTOR Globally, the share of life insurance

business in total premium was 56.8 %. However, the share of life insurance business in Asian region was only 28.9 %, which is in contradiction with the global trend.

For India, the share of life insurance business in total insurance business was very high at 80.2 % while the share of non-life insurance business was small at 19.8 %.

CONTINUED…. In life insurance business, India is ranked 10th

among the 88 countries, for which data are published by Swiss Re. During 2012, the life insurance premium in India declined by 6.9 % (inflation adjusted). During the same period, the global life insurance premium increased by 2.3 %.

However, the share of Indian non-life insurance premium in global non-life insurance premium was small at 0.66 % and India ranks 19th in global non-life insurance market.

INSURANCE SECTOR IN INDIA- ISSUES AND CHALLENGES

Public vs. Private- In insurance sector the Public sector is still dominating

after even a decade of opening the doors of this sector. This situation does put some burden on the private sector companies to innovate and differentiate themselves so that they could have a better share in the market.

Client Servicing- Making the potential customers understand about

insurance products in a simple and meaningful way poses a big challenge in front of insurance companies.

CONTINUED.... Staying profitable- According to a research the break even period in

the life insurance business has increased from the expected 9-10 years to about 13-15 years now. It is already under the pressure of massive expansion costs but also has to face the problem of diminishing volumes as policy lapses increase year on year.

HUMAN RESOURCE POLICIES Human Resource Planning Training & Development Performance Appraisal & Review Employee Participation Compensation & Rewards Healthy & Management Job Design

CONTINUED……. Maintaining Effective Employer-employee

Relationship Staffing

MARKETING STRATEGIES Superior To Any Other Savings Plan Door Hangers Quick Borrowing- As Home Loan,student Loan Interest Rates Higher Than Others Word-of-mouth Ads On Social Media- Facebook & Twitter Process Should Be Customer Friendly.

THREE MAJOR PLAYERS OF INSURANCE SECTOR1. Life Insurance Corporation of India (LIC):- LIC of India is the 1st position. LIC of India is

the largest Insurance Company in India founded in 1956 and it is an Indian state-owned insurance group Headquartered in Mumbai, India. LIC offers to its customers such as insurance plans, pension plans, special plans and group schemes.

PRODUCTS OR SERVICES OF LIC Insurance Plans Pension Plans Health Plans Withdrawl Plans Micro Insurance Plans Special Plans Unit Plans

LEADERS OF LIC Shri S. K. Roy ( Chairman, LIC of India ) 

S K Roy took charge as, Chairman, Life Insurance Corporation of India, on 29.06.2013. He began his career in LIC of India as a Direct Recruit Officer of the 11th batch, in 1981. He did his MA and LLM from University of Delhi and University of Warwick, respectively .He then acquired his Ph.D from University of Burdwan, on International Labour Migration.

2. SBI LIFE INSURANCE COMPANY LIMITED:- SBI Life Insurance is a joint venture between State

Bank of India and BNP Paribas Cardif. SBI owns 74% of the total capital and BNP Paribas Cardif the remaining 26%. SBI Life Insurance has an authorized capital of Rs. 2,000 crores and a paid up capital of Rs 1,000 crores.

PRODUCTS OR SERVICES OF SBI LIFE INSURANCE COMPANY LIMITED Retirement Plans Saving Plans Unit Linked Plans Individual Plans Child Plans Protections Plan Corporate Solutions Plans GROUP Group Micro Insurance Plans PLANS SBI Life – E-shield Plan ONLINE SBI Life – E-wealth Insurance Plan PLANS

LEADER OF SBI LIFE INSURANCE COMPANY LIMITED

Smt. Arundhati Bhattacharya Chairman(SBI LICL.) Arundhati Bhattacharya is an Indian banker. She

is the first woman to be the Chairperson of State Bank Of India. In 2015, she was listed as the 30th most powerful woman in the world by Forbes.

She studied English Literature at Calcutta’s Lady Brabourne College and then at Jadavpur University,Kolkata

3.THE NEW INDIA ASSURANCE COMPANY LIMITED THE New India Assurance Co Ltd, today, is a 100 % Govt.

owned multinational general insurance company operating in 28 countries and headquartered at Mumbai, India. Our global business crossed Rs.16000 Cr. . Founded by Sir Dorabji Tata in 1919, we have been market leaders in India in non-life business for more than 40 years. Our Indian business touchedRs 13209 Cr in 2014-15. We are the only direct insurer in India rated A-(Excellent – Stable outlook) by AM Best. "CRISIL has reaffirmed its ' AAA/STABLE ' rating on The New India Assurance Company Limited indicating that the company has the Highest degree of Financial strength to honor its Policyholders obligations"

PRODUCTS OF NIACL Personal Insurance Commercial Insurance Industrial Insurance Liability Insurance Social Insurance

LEADER OD NIACL Mr. G. Srinivasan(CMD) Mr. G. Srinivasan is Chairman cum Managing Director of The New India

Assurance Company Limited.  He was born on 19th July, 1958.  He is B.Com graduate and an Associate of Institute of Cost Accountants of India and also Fellow of Insurance Institute of India.  He has vast experience in the General Insurance Industry at various places in India and abroad having handled both operations and well as Corporate management level portfolios. He was Managing Director of New India Assurance Co. (Trinidad & Tobago) Ltd., in the Carribbean.  He was CMD of United India Insurance Co. Ltd, Chennai.  He is a member of many committees of Government of India, IRDA, etc.  He is Chairman, General Insurance Council and GIPSA (General Insurance Public Sector Association), Delhi.   He is a Director on many Boards including General Insurance Corporation of India, Mumbai.  

CONCLUSION Today most of the insurance companies are recruiting agents who are

professionals who can sell their unsought insurance products.

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

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

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

By another 20 yrs 50% of population is expected to have at least one sort of an insurance.

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