INSURANCE

INDUSTRY






CONTENTS
INTRODUCTION
HISTORY
WHY DO WE NEED IT
TYPES OF INSURANCE
TYPES OF INSURANCE INDUSTRY
MARKET SHARE
LAWS OF COMPANY
PORTERS 5 MODEL
SWOT ANALYSIS
CONCLUSION











INTRODUCTION

WHAT IS INSURANCE?
Definition:
Insurance is a form of risk
management primarily used to hedge against
the risk of a contingent, uncertain loss.

Insurance, whether life or non-life, provides
people with a reasonable degree of security
and assurance that they will be protected in
an event of a calamity or failure of any sort.


HISTORY OF INSURANCE
INDUSTRY
Evolution India 1818 - Oriental Life Insurance
Company -1st Insurance Company
1870 - Bombay Mutual Life Assurance Society
1st Life Insurance Company
1912 - The Indian Life Assurance Companies
Act enacted the 1st Law to Regulate the Life
Insurance Business
1928 - The Indian Insurance Companies Act
enacted to enable the government to collect
statistical information about both life & non-life
insurance businesses

HISTORY OF INSURANCE
INDUSTRY
1938: Earlier legislation consolidated &
amended the Insurance Act with the objective of
protecting the interests of the insuring public
1956: 245 Indian & foreign insurers & provident
societies are taken over by the central
government & nationalized. LIC formed by an
Act of Parliament, viz. LIC Act, 1956, with a
capital contribution of Rs. 5 crore from the
Government of India. The first General
Insurance Company established in the year 1850
in Calcutta by the British.

HISTORY OF INSURANCE
INDUSTRY
Today, Lloyds of London is an insurance
icon.

- Not an insurance company, but an
exclusive insurance market.

TOP INSURANCE COMPANIES
LIC
SBI LIFE INSURANCE
BIRLA SUN LIFE INSURANCE
RELIANCE LIFE INSURANCE
TATA AIG
ICICI LOMBARD
HDFC STANDARD LIFE INSURANCE



WHY DO WE NEED IT??
There are 2 reasons :

1)PRIMARY REASONS
Life is full of uncertainties.
Provides the much required RISK COVER.
Serves as a financial buffer in the wake of any
unfavorable and un-foreseen circumstances.
Ensures that near and dear ones are not left in
financial doldrums due to any exigency.
The risk cover that insurance provides has no
parallels in the financial world.

WHY DO WE NEED IT??
2)SECONDARY REASONS
Money back plans provides an element of
liquidity by returning a portion of the sum
assured at regular intervals. This is in
addition to the risk cover
Unit linked plans invest a percentage of
the premiums in market securities and
provide returns. This combines market
linked returns along with risk cover


WHY DO WE NEED IT??
WHY DO WE NEED IT??
TYPES OF INSURANCE

TYPES OF INSURANCE


LIFE INSURANCE GENERAL
INSURANCE


AUTO INSURANCE
MEDICAL & HEALTH
INSURANCE
TRAVEL INSURANCE
HOUSE INSURANCE



DIFFERENT TYPES OF
INSURANCE INDUSTRY
IRDA
Insurance Regulatory and Development
Authority (IRDA) is an autonomous apex
statutory body which regulates and
develops the insurance industry in India. It
was constituted by a Parliament of
India act called Insurance Regulatory and
Development Authority Act, 1999 and
duly passed by the Government of India.
IRDA
The agency operates from its headquarters
at Hyderabad, Andhra Pradesh where it
shifted from Delhi in 2001.
IRDA batted for a hike in the foreign
direct investment (FDI) limit to 49 per
cent in the insurance sector from the
erstwhile 26 per cent.The FDI limit in
insurance sector was raised to 49% in July
2013.


IRDA
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.

IRDA is a ten member
body consisting of:

A Chairman,-(T.S. Vijayan)

IRDA
Four part-time members,-(Anup
Wadhawan,S.B. Mathur,Prof.
V.K.Gupta,CA. Subodh Kr. Agarwal)
Five whole-time members,-(R.K.
Nair,M. Ram Prasad,S. Roy
Chowdhary,D.D. Singh)
All members are appointed by
the Government of India.

LIC
LIC
Life Insurance Corporation of
India (LIC) is an Indian state-
owned insurance group and investment
company headquartered in Mumbai. It is
the largest insurance company in India
with an estimated asset value
of 1560481.84 crore(US$250 billion).As
of 2013 it had total life fund of
Rs.1433103.14 crore with total value of
policies sold of 367.82 lakh that year.

LIC
The company was founded in 1956 when
the Parliament of India passed the Life
Insurance of India Act that nationalized
the private insurance industry in India.
Over 245 insurance companies and
provident societies were merged to create
the state owned Life Insurance
Corporation.

LIC
LIC continues to be the dominant life insurer
even in the liberalized scenario of Indian
insurance and is moving fast on a new
growth trajectory surpassing its own past
records. LIC has issued over one crore
policies during the current year. It has
crossed the milestone of issuing 1,01,32,955
new policies by 15th Oct, 2005, posting a
healthy growth rate of 16.67% over the
corresponding period of the previous year.

SBI
SBI
SBI Life Insurance is a joint venture
between State Bank of India and BNP
ParibasCardif.
SBI owns 74% of the total capital and
BNP Paribas Cardif the remaining 26%.
Understanding Various Aspects &
Leveraging Online Platform for Channel
Development: A case of Bancassurance
Channel.

PLANS OF SBI
Health Plans
Group Plans
Individual Plans:- Individual Plans are further
classified into:-
1. United linked plan
2. Child plan
3. Pension plan
4. Protection plan
5. Saving plan
BIRLA SUN LIFE INSURANCE
HISTORY
Launched just before 9 years but still
managed to be amongst leading
player(7
th
) in private insurance industry.
Strong fundamentals based on the Aditya
Birla Groups local insight and Sun Life
financials global expertise.
Birla Sun Life Insurance pioneered the
unique Unit Linked Life Insurance
Solutions in India

HISTORY
Having 1, 68,090 active advisors, and sold
2.5 million policies.
Current AUM of BSLI stands Rs. 8165
crore as on February 28, 2009
In April 2009, achieved the landmark of
processing 100% of its claims.

PROTECTION PLAN
Birla Sun Life Insurance High Net worth
Plan.
Birla Sun Life Insurance Term Plan.

SAVING PLAN
Birla Sun Life Insurance Dream Plan.
Birla Sun Life Insurance Simply Life.
HEALTH INSURANCE
BSLI Health Plan.
BSLI Universal Health Plan.

RETIREMENT PLANS
Birla Sun Life Insurance Secure 58
Plan.
Birla Sun Life Insurance Freedom
58.



HDFC
HDFC Standard Life Insurance Company
Ltd. is one of Indias leading private life
insurance companies, which offers a range
of individual and group insurance
solutions. It is a joint venture between
Housing Development Finance
Corporation Limited (HDFC Ltd.), Indias
leading housing finance institution and
The Standard Life Assurance Company, a
leading provider of financial services from
the United Kingdom.
BAJAJ ALLIANZ
Bajaj Allianz General Insurance Company
Limited is a joint venture between Bajaj
Auto Limited and Allianz SE. Both enjoy a
reputation of expertise, stability and strength.
Bajaj allianz today has a network presence in
over 200 towns spread across the length and
breadth of the country.
From Surat to Siliguri and Jammu to
Thiruvananthapuram, all the offices are
interconnected with the Head Office at Pune.


BAJAJ ALLIANZ
Dealing in these sectors:-

Travel Insurance
Health Insurance
Corporate Insurance
Motor Insurance


MARKET SHARE
1) LIC
2) ICICI
3) HDFC
Market Statistics
Life Insurance Funds accounts to 15% of household
Savings & may grow upto 20% in future.

Insurance Penetration in India is 2.6% of GDP compared
to Korea(6.77%) & Singapore(6.38%).

India is ranked 19th position in Insurance with a growth
of 19% p.a.

Non Life Insurance have lower penetration and
rural people needs awareness.

620 tn rupees investment is anticipated for
infrastructure development in future.

ACT GOVERNING INSURANCE
No regulation till 1866
Indian Companies Act (1866).
the Indian Life Assurance Companies
Act (1912)
the Provident Insurance Societies Act
(1912)
Indian Insurance Companies
Act(1928)

SWOT ANALYSIS
Strengths:

Strong capital and reserve.

Technically Skilled Manpower.

Innovative product for different
demography.

SWOT ANALYSIS
Weakness:

High administration & management
expenses.

Vertical organizational structure.

Lower Reliability on Pvt. Players.

SWOT ANALYSIS
Opportunities:

Inflow of global managerial & financial
expertise.

Liberalization results to wider choices.

Introduce global innovations and
practices.

SWOT ANALYSIS
Threats:

Cut-throat competition.

New Entrants.

customers switching to other company.

CSR ACTIVITIES
HDFC Life has always believed that
establishing a strong and ethical
foundation is an essential prerequisite
for long-term sustainable growth.
Integrity and people care are two of
our key fundamental values which we
follow.

Example: Life insurance penetration increases with affluence
0
2
4
6
8
10
12
0 1 2 3
1,000
10,000 100,000
100
Insurance premium
as % GDP
GDP per capita in USD (log scale)
Threshold for
insurance pick-up
Three avenues for growth
Addition of new
customers

Existing customers
buy more

Extension to new
geographies
1
2
3
INDIA
... INSURANCE IS POISED FOR GROWTH
45
INDIA INSURANCE INDUSTRY STATUS
46
Insurance premium
as % of GDP
Insurance premium
per capita (Rs)
2.3%
590
0.62%
160
Number of players
14 14
(1)
Premium income
(Rs '000 Cr)
63 17
2004 2004
Life Non-Life
~1.2%
~280
~0.4%
~100
1
4
27.5 9.4
CAGR: 23%
CAGR: 16%
2000 2000
India Has Come A Long Way In The Last Four Years
Several new products and channels
(1) Includes 4 nationalised companies
Source: IRDA, Swiss Re
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.


CONCLUSION
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.

AJINKYA SHINDE
BSHRI KHEDKAR
SWAPNIL RAUT