introduction of insuracne in india

7/24/2019 Introduction of Insuracne in India

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INTRODUCTION OF INSURACNE IN INDIA

The insurance industry of India consists of 53 insurance companies of which 24 are in life

insurance business and 29 are non-life insurers. Among the life insurers !ife Insurance

"orporation #!I"$ is the sole public sector company. Apart from that among the non-life

insurers there are si% public sector insurers. In addition to these there is sole national re-insurer

namely &eneral Insurance "orporation of India #&I" 'e$. (ther sta)eholders in Indian

Insurance mar)et include agents #indi*idual and corporate$ bro)ers sur*eyors and third party

administrators ser*icing health insurance claims.

(ut of 29 non-life insurance companies fi*e pri*ate sector insurers are registered to underwrite

policies e%clusi*ely in health personal accident and tra*el insurance segments. They are +tar

,ealth and Allied Insurance "ompany !td Apollo unich ,ealth Insurance "ompany !td a%

upa ,ealth Insurance "ompany !td 'eligare ,ealth Insurance "ompany !td and "igna TT/

,ealth Insurance "ompany !td. There are two more specialised insurers belonging to public

sector namely 0%port "redit &uarantee "orporation of India for "redit Insurance and

Agriculture Insurance "ompany !td for crop insurance.

Market Size

India1s life insurance sector is the biggest in the world with about 3 million policies which are

e%pected to increase at a "ompound Annual &rowth 'ate #"A&'$ of 2-5 per cent o*er the

ne%t fi*e years. The insurance industry plans to hi)e penetration le*els to fi*e per cent by 22.

The countrys insurance mar)et is e%pected to 6uadruple in si7e o*er the ne%t years from its

current si7e of 8+ billion. :uring this period the life insurance mar)et is slated to cross 8+

billion.

The general insurance business in India is currently at 's ;


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The country is the fifteenth largest insurance mar)et in the world in terms of premium *olume

and has the potential to grow e%ponentially in the coming years.

Investments

The following are some of the ma=or in*estments and de*elopments in the Indian insurance

sector.

>oreign :irect In*estment in the insurance sector stood at 8+ 34 million in arch-

+eptember 25 showing a growth of 52 per cent compared to the same period last

year.

Insurance firm AIA &roup !td has decided to increase its sta)e in Tata AIA !ife

Insurance "o !td a =oint *enture owned by Tata +ons !td and AIA &roup from 2 per

cent to 49 per cent.

"anada-based +un !ife >inancial Inc plans to increase its sta)e from 2 per cent to 49 per

cent in irla +un !ife Insurance "o !td a =oint *enture with Aditya irla ?u*o !td

through buying of shares worth 's 4 crore #8+ 249 million$.

?ippon !ife Insurance @apan1s second largest life insurance company has signed

definiti*e agreements to in*est 's 225 crore #8+ 34< million$ in order to increase its

sta)e in 'eliance !ife Insurance from 2 per cent to 49 per cent.

The "entral &o*ernment is planning to launch an all-in-one insurance scheme for farmers

called the 8nified ac)age Insurance +cheme #hartiya /rishi ima Bo=ana$. The

proposed scheme will ha*e *arious features li)e crop insurance health co*er personal

accident insurance li*e stoc) insurance insurance co*er for agriculture implements li)e

tractors and pump sets student safety insurance and life insurance.

&o*ernment launched a special enrolment dri*e +ura)sha andhan :ri*e comprising of

sale of gift che6ues and launch of deposit schemes in ban) branches to facilitate

enrolment under radhan antri +ura)sha ima Bo=ana #+B$ and radhan antri

@ee*an @yoti ima Bo=ana #@@B$. To increase the subscriber base and ensure wider reach the "entral &o*ernment has

eased se*eral norms for its flagship insurance scheme Atal ension Bo=ana #AB$in

terms of more options for periodical contributions *oluntary and premature e%its and

simplified penalty for payment delays.


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ennett "oleman and "o. !td #""!$ the media conglomerate with multiple

publications in se*eral languages across India is set to buy 'eligare 0nterprises !tds

entire 44 per cent sta)e in life insurance =oint *enture Aegon 'eligare !ife Insurance "o.

!td. The foreign partner Aegon is set to increase its sta)e in the =oint *enture from 2 per

cent to 49 per cent following go*ernments reform measure allowing the increase in

sta)e holding by foreign companies in the insurance sector.

&I" 'e and other non-life insurers ha*e =ointly formed the India ?uclear Insurance

ool with a capacity of 's 5 crore #8+ 22 million$ and will pro*ide the ris)

transfer mechanism to the operators and suppliers under the "!?: Act.

+tate an) of India has announced that ? aribas "ardif is )een to increase its sta)e in

+I !ife Insurance from 2 per cent to 3 per cent. (nce the foreign =oint *enture partner

increases its sta)e to 3 per cent +Is sta)e in +I !ife will get diluted to 4 per cent.

angladesh has granted permission to the !ife Insurance "orporation of India #!I"$ to

run its business ma)ing it the second foreign insurance company to operate in the

country.

'eliance !ife Insurance "ompany #'!I"$ today said it will add 2 agents across

India in this financial year as part of its e%pansion plans. It will increase their agency

force by 2 per cent which now stands at .

Government Initiatives

The &o*ernment of India has ta)en a number of initiati*es to boost the insurance industry. +ome

of them are as followsC

The Insurance 'egulatory and :e*elopment Authority #I':A$ of India has formed two

committees to e%plore and suggest ways to promote e-commerce in the sector in order to

increase insurance penetration and bring financial inclusion.

I':A has formulated a draft regulation I':AI #(bligations of Insures to 'ural and

+ocial +ectors$ 'egulations 25 in pursuance of the amendments brought about under

section 32 of the Insurance !aws #Amendment$ Act 25. These regulations impose

obligations on insurers towards pro*iding insurance co*er to the rural and economically

wea)er sections of the population.


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The &o*ernment of India has launched two insurance schemes as announced in 8nion

udget 25-. The first is radhan antri +ura)sha ima Bo=ana #+B$ which is a

ersonal Accident Insurance +cheme. The second is radhan antri @ee*an @yoti ima

Bo=ana #@@B$ which is the go*ernments !ife Insurance +cheme. oth the schemes

offer basic insurance at minimal rates and can be easily a*ailed of through *arious

go*ernment agencies and pri*ate sector outlets.

The 8ttar radesh go*ernment has launched a first of its )ind ban)ing and insurance

ser*ices helpline for farmers where indi*iduals can lodge their complaints on a toll free

number.

The select committee of the 'a=ya +abha ga*e its appro*al to increase sta)e of foreign

in*estors to 49 per cent e6uity in*estment in insurance companies.

&o*ernment of India has launched an insurance pool to the tune of 's 5 crore #8+

22 million$ which is mandatory under the "i*il !iability for ?uclear :amage Act

#"!?:$ in a bid to offset financial burden of foreign nuclear suppliers.

Road Ahead

India1s insurable population is anticipated to touch ;5 million in 22 with life e%pectancy

reaching ;4 years. >urthermore life insurance is pro=ected to comprise 35 per cent of total

sa*ings by the end of this decade as against 2 per cent in 29-.

The future loo)s promising for the life insurance industry with se*eral changes in regulatory

framewor) which will lead to further change in the way the industry conducts its business and

engages with its customers.

:emographic factors such as growing middle class young insurable population and growing

awareness of the need for protection and retirement planning will support the growth of Indian

life insurance.


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irla Institute of anagement Technologyis a graduate business school located in

&reater ?oida established in 9


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companies were amalgamated into ?ational Insurance ?ew India Assurance (riental Insurance

and 8nited India Insurance which were head6uartered in each of the four metropolitan

cities.8ntil 999 there were no pri*ate insurance companies in India. The go*ernment then

introduced the Insurance 'egulatory and :e*elopment Authority Act in 999 thereby de-

regulating the insurance sector and allowing pri*ate companies. >urthermore foreign in*estment

was also allowed and capped at 2L holding in the Indian insurance companies.

In 2 the Actuaries Act was passed by parliament to gi*e the profession statutory status on par

with "hartered Accountants ?otaries "ost H Dor)s Accountants Ad*ocates Architects and

"ompany +ecretaries.A minimum capital of8+


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I('TA?"0 (> I?+8'A?"0 I? I?:IA

Insurance is the on! sector "hich #arners on# term savin#s

Insurers are increasingly introducing inno*ati*e products to meet the specific needs of the

prospecti*e policyholders. An e*ol*ing insurance sector is of *ital importance for economic

growth. Dhile encouraging sa*ings habit it also pro*ides a safety net to both enterprises and

Indi*iduals.

Insurance "ompanies recei*e without much default a steady cash stream of premium or

contributions to pension plans. Karious actuary studies and models enable them to predict

relati*ely accurately their e%pected cash outflows.

!iabilities of Insurance companies being long-term or contingent in nature li6uidity is e%cellent

and their in*estments are also long-term in nature. +ince they offer more than the return on

sa*ings in the shape of life-co*er to the in*estors the rate of return guaranteed in their insurance

policies is relati*ely low. "onse6uently the need to see) high rates of returns on their

in*estments is also low. The ris)-return trade off is hea*ily tilted in fa*our of ris).

As a combined result of all this in*estments of insurance companies ha*e been largely in bonds

floated by &(I +8s state go*ernments local bodies corporate bodies and mortgages of long

term nature.


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Generates $on# term %unds %or in%rastructure and stron# &ositive correation 'et"een

deveo&ment o% ca&ita markets and insurance(&ension sector

>or &: to grow at < to L 6ualitati*e impro*ement in infrastructure is essential. 0stimates of

funds re6uired for de*elopment of infrastructure *ary widely. An in*estment of 9 crore is

anticipated in the ne%t 5 years. Tenure of funding re6uired for infrastructure normally ranges

from to 2 years. The insurance industry also pro*ides crucial financial intermediary ser*ices

transferring funds from the insured to capital in*estment critical for continued economic

e%pansion and growth simultaneously generating long-term funds for infrastructure

de*elopment.

In fact infrastructure in*estments are ideal for asset-liability matching for life insurance

companies gi*en their long term liability profile. According to preliminary estimates published

by the 'eser*e an) of India contribution of insurance funds to financial sa*ings was 4.2 per

cent in 25- *i7. 2.4 per cent of the &: at current mar)et prices. :e*elopment of the

insurance sector is thus necessary to support continued economic transformation. +ocial security

and pension reforms too benefit from a mature insurance industry.

The insurance sector in India which was opened up to pri*ate participation in the year 999 has

completed o*er se*en years in a liberali7ed en*ironment. Dith an a*erage annual growth of 3;

per cent in the first year premium in the life segment and 5.;2 per cent growth in the nonlife

segment together with the largest number of life insurance policies in force the potential of the

Indian insurance industry is still large.


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!ife insurance penetration in India was less than per cent till 99-9. :uring the 99s it was

between and 2 per cent and from 2 it was o*er 2 per cent. In 25 it had increased to 2.53

per cent.

S&read o% %inancia services in rura areas and amon#st socia! ess &rivie#ed

I':A 'egulations pro*ide certain minimum business to be done

- in rural areas

- in the socially wea)er sections

!ife Insurance offices are spread o*er nearly 4 centres. resence of representati*e in e*ery

tehsil M deeper penetration in rural areas.

Insurance agents numbering o*er .24 la)hs in rural areas.

olicies sold in rural areas #24-5$ - ?o. of policies - 55 la)hs +um assured 4 crores.

+ocial security - ?o. of li*es co*ered 23-4 ;.4 la)hs 24-5 42. la)hs

Insurance has e*ol*ed as a process of safeguarding the interest of people from loss and

uncertainty. It may be described as a social de*ice to reduce or eliminate ris) of loss to life and

property.

Insurance contributes a lot to the general economic growth of the society by pro*ides stability to

the functioning of process. The insurance industries de*elop financial institutions and reduce

uncertainties by impro*ing financial resources.

)* +rovide sa%et! and securit!,

Insurance pro*ide financial support and reduce uncertainties in business and human life. It

pro*ides safety and security against particular e*ent. There is always a fear of sudden loss.


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Insurance pro*ides a co*er against any sudden loss. >or e%ample in case of life insurance

financial assistance is pro*ided to the family of the insured on his death. In case of other

insurance security is pro*ided against the loss due to fire marine accidents etc.

-* Generates %inancia resources,

Insurance generate funds by collecting premium. These funds are in*ested in go*ernment

securities and stoc). These funds are gainfully employed in industrial de*elopment of a country

for generating more funds and utilised for the economic de*elopment of the country.

0mployment opportunities are increased by big in*estments leading to capital formation.

.* $i%e insurance encoura#es savin#s,

Insurance does not only protect against ris)s and uncertainties but also pro*ides an in*estment

channel too. !ife insurance enables systematic sa*ings due to payment of regular premium. !ife

insurance pro*ides a mode of in*estment. It de*elops a habit of sa*ing money by paying

premium. The insured get the lump sum amount at the maturity of the contract. Thus life

insurance encourages sa*ings.

/* +romotes economic #ro"th,

Insurance generates significant impact on the economy by mobili7ing domestic sa*ings.

Insurance turn accumulated capital into producti*e in*estments. Insurance enables to mitigate

loss financial stability and promotes trade and commerce acti*ities those results into economic

growth and de*elopment. Thus insurance plays a crucial role in sustainable growth of an

economy.

0* Medica su&&ort,

A medical insurance considered essential in managing ris) in health. Anyone can be a *ictim of

critical illness une%pectedly. And rising medical e%pense is of great concern. edical Insurance


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is one of the insurance policies that cater for different type of health ris)s. The insured gets a

medical support in case of medical insurance policy.

1* S&readin# o% risk,

Insurance facilitates spreading of ris) from the insured to the insurer. The basic principle of

insurance is to spread ris) among a large number of people. A large number of persons get

insurance policies and pay premium to the insurer. Dhene*er a loss occurs it is compensated out

of funds of the insurer.

2* Source o% coectin# %unds,

!arge funds are collected by the way of premium. These funds are utilised in the industrialde*elopment of a country which accelerates the economic growth. 0mployment opportunities

are increased by such big in*estments. Thus insurance has become an important source of

capital formation.

The economic de*elopment of India was dominated by socialist Minfluenced policies stateowner

sector and red tape and e%tensi*e regulations collecti*ely )nown as N!icense 'a=. The Indian

economic de*elopment got a boost through its 0conomic reforms in 99 and again through its

renewal in the 2. Insurance ser*es a number of *aluable economic functions that are largely

distinct from other types of financial intermediaries. Insurance contribution materially to

economic growth by impro*ing the in*estment climate and promoting a more efficient mi% of

acti*ities then would be underta)en in the absence of ris) management instrument. Insurance

sector in India is one of the most booming sectors of the economy and is growing at the rate of

5-2 percent per annum. In India insurance is a flourishing industry with se*eral national and

international players competing with each others and growing at rapid rates. Indian insurance

companies offer a comprehensi*e range of insurance plans a range that is growing as the

economy matures and the wealth of the middle classes increases. :ue to the growing demand for

insurance more and more companies are now emerging in the Indian insurance sector. The

economy of India is the ele*enth largest in the world by nominal &: and the forth largest by

urchasing ower arity #$. /0BD(':+C !icense 'a= 0conomic reform financial


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intermediaries In*estment climate 'is) management instrument "omprehensi*e range

?ominal &: .

>or economic de*elopment in*estments are necessary. In*estments are made out of sa*ings. !ife

Insurance "ompany is a ma=or instrument for the mobili7ation of sa*ings of people particularly

from the middle and lower group. All good life insurance companies ha*e huge funds

accumulated through the payments of small amounts of premium of indi*iduals. These funds are

in*ested in ways that contribute substantially for the economic de*elopment of the countries in

which they do business The system of insurance pro*ides numerous direct and indirect benefits

to the indi*iduals and his family as well as to industry and commerce and to the community and

the nation as a whole. resent day organi7ation of industry commerce and trade depend entirely

on insurance for their operation ban)s and financial institutions lend money to industrial and

commercial underta)ings only on the basis of the collateral security of insurance.

+"(0 (> T,0 I?+8'A?"0 I? I?:IA

Insurance is a nice-loo)ing option for in*estment but most people are not aware of its ad*antages

as an in*estment option. 'emember that foremost and first insurance is about ris) co*er and

protection. y buying life insurance you buy peace of mind. Insurance also ser*es as an

e%cellent ta% sa*ing mechanism. The &o*ernment of India has pro*ided ta% incenti*es to life

insurance products in order to facilitate the flow of funds into producti*e assets

.

The insurance sector has opened up for pri*ate insurance companies with the enactment of I':A

Act 999. A large number of companies are competing under both general and life Insurance.

The >:I cape6uity in this sector is 2L and the proposals ha*e to be cleared by Insurance

'egulatory and :e*elopment Authority #I':A$ established to protect the interest of holder of

Insurance policy and act as a regulator and facilitator in the industry.

+ome of the ma=or players in this sector are !I" a% ?ew Bor) !ife Insurance a=a= Allian7

I"I"I rudential ,:>" +tandard !ife etlife Insurance irla +un !ife Insurance etc


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*arious types of instruments and policies are coming up in the mar)et to attract more clients.

ost of the population of India is not insured hence there is a lot of scope in this sector and a

number of companies are planning to enter the sector.

!ife insurance is a financial co*er for a contingency lin)ed with human life li)e death disability

accident retirement etc. It pro*ides a definite amount of money in case the life insured dies

during the term of the policy or becomes disabled on account of an accident.3our years later when the company offered I"I"I an)1s shares to the

public I"I"I1s shareholding was reduced to 4L. In the year 2 I"I"I an) offered made an

e6uity offering in the form of A:'s on the ?ew Bor) +toc) 0%change #?B+0$ thereby

becoming the first Indian company and the first ban) or financial institution from non-@apan Asia


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to be listed on the ?B+0. In the ne%t year it ac6uired the an) of adura !imited in an all-

stoc) amalgamation. !ater in the year and the ne%t fiscal year the ban) made secondary mar)et

sales to institutional in*estors. Dith a change in the corporate structure and the budding

competition in the Indian an)ing industry the management of both I"I"I and I"I"I an) were

of the opinion that a merger between the two entities would pro*e to be an essential step. It was

in 2 that the oards of :irectors of I"I"I and I"I"I an) sanctioned the amalgamation of

I"I"I and two of its wholly-owned retail finance subsidiaries

I"I"I ersonal >inancial +er*ices !imited and I"I"I "apital +er*ices !imited with

I"I"I an). In the following year the merger was appro*ed by its shareholders the ,igh "ourt

of &u=arat at Ahmedabad as well as the ,igh "ourt of @udicature at umbai and the 'eser*e

an) of India. ;; 4.2 "8''0?T +"0?A'I(C >inancial performanceC I"I"I an) is India1s

second-largest ban) with total assets of 's. 334. billion #8+


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unwa*ering focus on technology. ranches H ATs I"I"I an) has a wide networ) both in

Indian and abroad. In India alone the ban) has 42 branches and about 444 ATs. Tal)ing

about foreign countries I"I"I an) has made its presence felt in < countries - 8nited +tates ;inance "entre and

representati*e offices in 8nited Arab 0mirates "hina +outh Africa angladesh Thailand

alaysia and Indonesia. The an) proudly holds its subsidiaries in the 8nited /ingdom 'ussia

and "anada out of which the 8/ subsidiary has established branches in elgium and &ermany.

I"I"I I?+8'A?"0 +T'8"T8'0

ar)eting is an assessment ascertainment and fulfillment of consumer needs and desire

into products and ser*ices through planning and creating demand for companies products

ser*ing the consumer demand through planned physical distribution with the for help of

mar)eting channels e%panding the mar)eting e*en in the face of )een competition.

As a corporate state of mind which insists integration and co-ordination of all mar)eting

functions in welded with all co-operati*e functions with a basic ob=ecti*e of ma%imi7ing long

range corporate profits and satisfy the customer needs and wants.

The Creation o% customer im&ies three thin#s,6

$ :e*elopment of product through technical and mar)et research on which afford sales

opportunities.

2$ ersuading the customer to buy through ad*ertisement and sales promotion.

3$ a)ing the product a*ailable in a form at a price time and place the customer want.

ar)eting research is the function which lin)s the consumer customer and public to the

mar)eter through information used to identify and define mar)eting opportunities and problems.


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(b=ecti*e of mar)eting research may be primary to gather information from different customer

attitudes and opinions.

The insurance sector in India has come a full circle form being an open competiti*e

mar)et to nationali7ation and bac) to a liberali7ed mar)et again. Tracing the de*elopments in the

Indian insurance sector re*eals the 3 degree turn witnessed o*er a period of almost two

centuries.

The ro=ect I ha*e ta)en up is 7 ICICI +RUDENTIA$ $IFE INSURANCE8 The reason

why I too) up this sub=ect is because today insurance industry is among the fastest growing

sector and it pro*ides wonderful business mar)eting where by people can use their free time for

the purpose of not only earning money and rewards but also build meaningful relationships.

Through this pro=ect wor) I e%pect to come with meaningful analysis on awareness of public on

OA'/0TI?& +T'AT0&I0+ I? I"I"I '8:0?TIA! !I>0 I?+8'A?"0P.

O39ECTI:ES

To )now the mar)eting strategy in I"I"I rudential !ife Insurance in ellary.

To )now the public interest towards the insurance.

To )now the brand awareness towards I"I"I rudential !ife Insurance "o. !td in

ellary.

To find out which parameter is moti*ating insurance ad*isers to =oin insurance field.

To ma)e suggestions and recommendations to impro*e upon the wor)ing of the company.

I"I"I rudential !ife Insurance "ompany is a =oint *enture between I"I"I an) - one of

India1s foremost financial ser*ices companies-and prudential plc - a leading international

financial ser*ices group head6uartered in the 8nited /ingdom. Total capital infusion stands at

's. 3;.;2 billion with I"I"I an) holding a sta)e of ;4L and rudential plc holding 2L.


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De began our operations in :ecember 2 after recei*ing appro*al from Insurance 'egulatory

:e*elopment Authority #I':A$. Today our nation-wide team comprises of o*er 954 branches in

addition to 5 micro-offices o*er 29 ad*isorsG and 2 banc assurance partners.

I"I"I rudential was the first life insurer in India to recei*e a ?ational Insurer >inancial

+trength rating of AAA #Ind$ from >itch ratings. >or three years in a row I"I"I rudential has

been *oted as India1s ost Trusted ri*ate !ife Insurer by The 0conomic Times - A" ?ielsen

('& arg sur*ey of 1ost Trusted rands1. As we grow our distribution product range and

customer base we continue to tirelessly uphold our commitment to deli*er world-class financial

solutions to customers all o*er India.

ICICI 3ank,

I"I"I an) !imited #?B+0CI?$ is India1s largest pri*ate sector ban) and the second

largest ban) in the country with consolidated total assets of 2 billion as of arch 3 2


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into ten mar)ets comprising of "hina ,ong /ong India @apan /orea alaysia +ingapore

Taiwan Kietnam and 8nited Arab 0mirates.

:ision and Mission Statement,

Their *ision is to ma)e I"I"I rudential !ife Insurance "ompany the dominant new

insurer in the life insurance industry. This they hope to achie*e through their commitment to

e%cellence focus on ser*ice speed and inno*ation and le*eraging our technological e%pertise.

The success of the organi7ation will be founded on its strong focus on *alues and clarity of

purpose. These includeC

8nderstanding the needs of customers and offering them superior products and ser*ice

building long lasting relationships with their partners pro*iding an enabling en*ironment to

foster growth and learning for their employees and abo*e all building transparency in all our

dealings.

They belie*e that they can play a significant role in redefining and reshaping the sector.

&i*en the 6uality of their parentage and the commitment of their team they feel that there will

be no limits to their growth.

:arious ICICI $i%e Insurance +ans*


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Education Insurance +ans,

+mart /id ?ew 8nit-lin)ed

'egular remium

+mart /id ?ew 8nit-lin)ed

+ingle remium

+mart /id 'egular remium

;eath Creation +ans,

Dealth Ad*antage

!ife+tage Assure

!ifeTime &old

!ife!in) +uper

!ife+tage '

+remium Guarantee +ans,

In*est +hield !ife ?ew

In*est +hield "ashan)

+rotection +ans,

ure rotect

!ife &uard


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+a*e 1n1 rotect

"ashboo)

,ome Assure

Retirement Soutions,

!ife +tage ension

!ifeTime +uper ension

!ife!in) +uper ension

>ore*er!ife lan

Immediate Annuity

4eath Covera#e +ans

,ealth +a*er

edi Assure

,ospital "are

"risis "o*er

"ancer "are

:iabetes "are Acti*e


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:iabetes Assure

ICICI +ru Grou& Soutions Advanta#e

&roup +uper Annuation

&roup &ratuity lan

Annuity +olutions

&roup Term Insurance lan

&roup Term Insurance in lieu of 0:!I

Rura +ans

I"I"I ru +ura)sha

I"I"I ru +ura)sha /a*ach

Micro Insurance +ans

I"I"I ru +ar* @ana lan

Ana!sis o% ICICI +rudentia $i%e Insurance

Stren#th,

I"I"I rudential is (ne of the largest financial institutions of India.


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oney power which ma)es them ignorant about the gestation period.

oti*ation factors pro*ided by the "ompany.

+er*ice 6uality which is the cru% of their mission.

A huge data base of corporate clients retail customer and ban) customers

of I"I"I.

,ighest paid up capital deposited in I':A in comparison to all players.

Training pro*ided to all people associating with I"I"I rudential

;eakness,

,igh targets for financial ad*isors and for the sales departments.

any competitors in the mar)et offer same product by the title difference

in the premium and offerings.

Kery huge premium of policies.

roblematic to ad*isors also.

+ustainable to ris) associated with in*estments in money mar)et.

O&&ortunities,

,ealth insurance and pension schemes an estimated mar)et potential ofappro%imately 5 billion.

Tie up with more corporate agents all o*er India. And Tie up with bro)er

#agent$ also.

+trong brand of company helps to boost sales in mar)et.


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Attract more people of pro*iding customer centric products.

Threats,

layers li)e a=a= and irla +un life with low premium for the similar

plans.

eople are not aware of different distribution channels.

Threat from e%isting insurance players.

Threat from new entrants.

"hanges in the policy of I':A.

Data Ana!sis

Ta'e sho"in# cassi%ication o% res&ondents accordin# to occu&ation*

+articuars No* o% Res&ondents +ercenta#e

@ob ,olders 9 3L

usiness eoples 44L

&o*t. 0mployer 5 2L


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TOTA$ -0 )


32/34

Findin#s,

>I?:I?&+

a=ority of the respondents belie*ed that larger ris) co*erage of their policy was the

main feature that attracted them to buy that policy low premium was the ne%t important

feature.

I"I"I rudential is the largest pri*ate player in the insurance industry in India.

3aance sheet Mar = Mar =


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:ue to the increasing concern of people towards their healthlife the life insurance

business has good prospects.

There are few short term plans which are not )nown to the public.

"ompany has high policy charges which are not affordable by the lower middle andlower class people.

(ut of total population of billion of country only 22L ha*e insurance co*er.

+o we can say that there is still large potential for both the public and pri*ate

companies. ri*ate companies ha*e to gi*e *aried customi7ed product to compete with

the !I" which is holding about 9;L of the total mar)et.

"(?"!8+I(?

ost of the people are interested on +um Assured and Additional benefits and some people are

interested in minimum premium hence company has to formulate those policies which are

mostly preferred by customers and prospects.'ural people are not interested and they are not

understanding about life insurance. +o if the company concentrates on rural area and to ma)e

awareness of them then they can assure their life of benefit."ompany should ma)e their


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products fle%ible for the con*enience of their customer and the companies should now try to

identify the gap between current le*el of customer ser*ice and customer e%pectations.

introduction of insuracne in india

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