INSURANCE

SECTOR
INTRODUCTION
The main concept of the insurance is "spreding risk".
Every individual desire security for self and dependent.

A promise of compensation for specific potensial

future losses in exchange for a periodic payment.
 History of insurance
Ancient history:
The first methods of transferring or distributing risk
were practiced by Chinese and Babylonians traders as
long as 3rd and 2nd millennia BC respectively

Greeks and Romans:

Introducedtheoriginsofhealthandlife
insurancec.600BCEwhentheycreatedguilds.
German and British government programs:
Germany built on a tradition of welfare programs in
Prussia and Saxony that began as early as in the 1840s.

In the 1880s Chancellor Otto von Bismarck introduced old

age pensions, accident insurance, medical care.

American history of insurance:

BenjaminFranklinhelpedtopopularizedand
makethepracticeofinsurance,particularly
propertyinsurance.
Indian history of insurance:
In India , insurance has a deep-rooted history. Insurance in
its current form has its history dating back until 1818,
when Oriental Life Insurance Company was started by
Anita Bhavsar in Kolkata to cater to the needs of
European community.
In 1870, Bombay mutual life assurance society became
the first Indian Insurer
Atthedownofthe20thcentury,manyinsurance
companywerefounded.Intheyear1912,LifeInsurance
companiesactandProvidentfundactwerepassedto
regulatetheInsurancebusiness.
 Classification of insurance
Classification or division of insurance is depending on the
insurers expertise in Two broad areas such as life insurance
and general insurance.

Life insurance is refundable.

General insurance is non refundable , they provide only

Compensation for damages.
 Insurance companies in India

Typeof General
Lifeinsurance Re-Insurance
insurance insurance

PublicSector 01 06 01
Company(ies)

PrivateSector 23 18 00
Companies

Total 24 24 01
Life insurance companies:
13. Reliance Life Insurance Company Limited
1. Life Insurance Corporation of
- Formerly known as AMP Sanmar LIC
India (Public Sector)
14. ING Vysya Life Insurance
2. MetLife India Life Insurance
15. Shriram Life Insurance
3. ICICI Prudential
16. Bharti AXA Life Insurance Co Ltd
4. Bajaj Allianz Life Insurance
17. Future Generali Life Insurance Co Ltd
5. Max New York Life Insurance
18. IDBI Fortis Life Insurance
6. Sahara Life Insurance
19. AEGON Religare Life Insurance 1
7. TATA AIG Life Insurance
20. DLF Pramerica Life Insurance
8. HDFC Standard Life
21. CANARA HSBC Oriental Bank of
9. Birla Sunlife
Commerce LIFE INSURANCE
10. SBI Life Insurance Company
22. Star Union Dai-ichi Life Insurance Co. Ltd.
Limited
23. IndiaFirst Life Insurance Company
11. Kotak Life Insurance
24. Edelweiss Tokio Life Insurance Co. Ltd
12. Aviva Life Insurance
 GeneralInsuranceCompanies:
13) Shriram General Insurance
1) New India Assurance Co Ltd (Public Sector)
14) Future Generali
2) United India Insurance Co Ltd (Public
15) Bharti AXA
Sector)
16) Universal Sompo
3) Oriental Insurance Co Ltd (Public Sector)
17) Raheja QBE General
4) National Insurance Co Ltd (Public Sector)
18) SBI General Insurance
5) ICICI Lombard
19) L & T General Insurance
6) Bajaj Allianz
Standalone Health Insurance Companies
7) Reliance General Insurance
20) Star Health Insurance
8) IFFCO Tokio
21) Apollo Munich Health Insurance
9) HDFC ERGO
22) Max Bupa Health Insurance
10) Royal Sundaram
Export Credit Guarantee Insurance
11) Tata AIG General
23) Export Credit Insurance (Public Sector)
12) Cholamandalam MS
Agriculture Insurance Company
24) Agriculture Insurance (Public Sector)
SWOTanalysisofInsuranceSector
Strength:
Patents
Insurance having currently good market
Premium rates are increasing
The variety of products are increasing
IT bringing new dimensions to insurance sector

Weakness:
Insurance companies are often slow to respond to changing needs
Buying insurance policy is a cumbersome process
Products or service similar to competitor
Opportunity:
Technology is increasing paperless transactions are available
Busy life , customers need flexible and customizable policies
Like mobile banking mobile insurance could be hit
New innovation in technology-measuring weather variables

Threat:
Weather cycles
New substitute product emerging
Increasing expenses and lower profit margins will hit hard on
the smaller agencies and insurance companies
Government regulations on issues like health care and
terrorism can quickly change the direction of insurance
ADVANTAGES OF LIFE INSURANCE
Riskcover
Planningforlifestageneeds
Protectionagainstrisinghealthexpenses
Buildsthehabitofthrift
SafeandProfitablelong-terminvestment
Assuredincomethroughannuities(pensions)
Protectionplussavingsoveralongterm
Facilityofloanswithoutaffectingthepolicybenefits
Taxbenefits
Mortgageredemption
 Challenges for insurance sector
All insurance sectors have experienced dramatic change over the past
decade. This will continue and even accelerate over the coming decade,
and not all of these trends may be favorable for insurers.

Social:
Customerspredominantlyseekingface-to-faceinteractionswith
intermediaries

Technological:
Insurers face increased data overload, quality and privacy issues,
and cyber threats, resulting in a regression to"gut-driven"decision makin
Environmental:
With catastrophic events on the rise and insufficient data to accurately
predict them, insurers will exit unprofitable areas.

Economic:
The world moves from globalization to regionalization and insurers
operate in and create products specific to narrow boundaries

Political:
Developed and emerging markets implement burdensome regulations
on insurers. Products and practices diverge between countries.
 Conclusion
Regardless of which category you belong to, there are a number of
actions you can take to prepare yourself for the uncertain future and
exploit the emerging opportunities.