INVESTMENT IN INSURANCE SECTOR

INSURANCE SECTOR OF INDIA

STRUCTURE OF INSURANCE SECTOR

Control Foreign players in Insurance Sector

Life Insurance still dominated by LIC

Non-Life insurance

What Is in an Insurance Company Investment Portfolio?

From the many to the few

Insurance Regulation

Insurance company profits

It is extremely unfair to compare the performance of insurance against other investments without considering the core features of insurance.

Are private insurance companies safe for investment?

Reasons: Regulated by IRDA Insurance Act 1938

Attachment with Re-insurance company

Approach to Insurance Ombudsman

Insurance Investment Advisory

Services : Asset allocation

Enterprise investment risk management

Ongoing portfolio review

Services : Insurance company peer analysis

M&A investment due diligence

Investment Manager Research

Insurance & investment

 Insurance Companies are largest institutional investors in world Investment operations are crucial Out of worlds assets 40% of assets managed by Insurance Companies Eg US

Investment Management OF INSURANCE SECTOR

Investment operations are not to be considered as incidental but crucial to the business of insurance. Investment of insurance funds is regulated in some countries. In many insurance companies the underwriting unit managers are also held responsible for investment results.

Liability profile of insurance componies : Life Insurance Companies:

General Insurance Companies:

OBJECTIVE OF INSURANCE COMPANIES

1) SOCIAL OBJECTIVE: Social commitment, to provide maximum risk coverage to the investor. 2) SPREAD INSURANCE AND PROVIDE RISK COVERAGE: To spread insurance whether life or non-life and provide them reasonably priced financial cover against risk. 3) ENCOURAGE SAVINGS: To save for the future by making insurance linked savings more attractive and secure. 4) NATION BUILDING: Funds created are then utilized and invested for nation building.

ADVANTAGES OF INSURANCE OVER OTHER SAVINGS

1) PROTECTION: Full protection against risk. 2) AID TO SAVINGS: Easy installment facility. 3) LIQUIDITY: It is easy to acquire loan on the security of any policy that has acquired loan value.

4) TAX RELIEF: This is available for amounts paid by way of premium for life insurance.
5) MONEY WHEN YOU NEED IT: An investor can meet its certain monetary needs, which may arise from time to time, by investing in a combination of different plans.

Investment Opportunities in Insurance Sector

In 1635. Insurance means to compensate the owner against loss arising from a variety of risks, which he anticipates, to his life, property and business. As assurance

The savings habit, which in turn generates long-term funds for infrastructure building.

 The nature of insurance business ensures constant inflow of funds - the payout is staggered and contingency related thereby making it readily available for investment on infrastructure building. Insurance is one sector whose contribution to GDP is quite significant. Post independence, the Indian Government nationalized the private life insurance companies with a view to raise funds for the infrastructure developments, which lagged behind pathetically.