Insurance Industries an Nalysis

8/2/2019 Insurance Industries an Nalysis

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PRESENTATION

ON

INDIAN INSURANCEINDUSTRIES:AN ANALYSIS


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PRESENTER

GAGANDEEP SINGH BAGGA


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What is Insurance?

Insurance is a form of risk management primarily used

to hedge against the risk of a contingent, uncertain loss.Insurance is defined as the equitable transfer of the riskof a loss, from one entity to another, in exchange forpayment. An insurer is a company selling the insurance;the insured, or policyholder, is the person or entitybuying the insurance policy


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The business of life insurance in India in its existing formstarted in India in theyear 1818with the establishment of theOriental Life Insurance Companyin Calcutta. Some of theimportant milestones in the life insurance business in India are:

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

1928: The Indian Insurance Companies Act enacted to enable thegovernment to collect statistical information about both life and

non-life insurance businesses.

Milestone


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

1956: 245 Indian and foreign insurers and provident societies takenover by the central government and nationalized. LIC formed by anAct of Parliament, viz. LIC Act, 1956, with a capital contribution ofRs. 5 crore from the Government of India.


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Industry structure in India

Currently India is a US$41 billion industry. Currently, inIndia only two million people (0.2 % of the totalpopulation of 1 billion) are covered under Mediclaim,


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In developed nations like USA about 75 % of the total

population are covered under some insurance scheme


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Classification of Insurance


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Life insurance is concerned with making provision for a

specific event happening to the individual, such as death

where as non life (or generalinsurance) is more commonly concerned with theprovision for a specific event, which affects a property,such as fire, flood, theft etc.


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Non life insurance

General insurance or non-life insurance policies,including automobile and homeowners policies, providepayments depending on the loss from a particularfinancial event. General insurance typically comprises

any insurance that is not determined to be life insurance.It is called property and casualty insurance in the U.S.and Non-Life Insurance in Continental Europe.


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Need for Life Insurance:

Temporary needs/ threats Regular Savings

Investment

Retirement


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Benefits from Life Insurance It is superior to a traditional saving vehicles

It encourages saving and forces thrift It provides easy settlement and protection againstcreditors

It helps to achieve the purpose of the Life Assured

It can be enchased and facilitates borrowing

Tax Relief


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EMERGENCE OF IRDA Insurance Regulatory and Development Authority

(IRDA)

Duties, Power and Functions of IRDA

Insurance Regulatory and Development Authority(IRDA) Act

Regulatory Issues.


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MAJOR PLAYER IN LIFE INSURANCE

In the private sector 12 life insurance and 6 general

insurance companies have been registered than afterremaining companies are registered.


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LIFE INSURANCE CORPORATION INDIA

VISION

"A trans-nationally competitive financial conglomerate ofsignificance to societies and Pride of India

MISSION

"Explore and enhance the quality of life of people

through financial security by providing products andservices of aspired attributes with competitive returns,and by rendering resources for economic development."


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ALLIANZ BAJAJ LIFE INSURANCE COMPANY LTD

Allianz Bajaj life insurance company ltd with a capital base of RS.1.5billions is a joint venture between ALLIANZ AG and BAJAJ AUTOLTD.

The key business areas of Allianz group include General Insurance(property, engineering, marine, motor, casualty and miscellaneous),

reinsurance, risk management, life and health insurance, assetmanagement and pension funds management


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Future Possibilities (Next 5-10 Years)

Job opportunities are likely to increase manifold. Thenumber of people working in the insurance sector inIndia is roughly the same as in the UK with a populationthat is 1/7 India's; the US with a population 1/4 the sizeof India has nearly 4 times the number.

The liberalization of the insurance sector promisesseveral new jobs opportunities for those employed in thefinance sector that are equipped with degrees in finance


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BODIES THAT REGULATE THE SECTOR

For better regulation purpose of the insurance sector thegovernment has established following bodies;

1. IRA: Insurance Regulatory Authority.

2. IRDA: Insurance Regulatory and Development

Authority. 3. TAC: Tariff Advisory Committee.


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State of Insurance in India

According to latest IRDA figures, India has about 57crore of insurable people. Out of which Private LifeInsurance companies have 4.03 crore Policies in forcewhich cover about 4. The insurance penetration hasincreased from 2.32% to 5.51% over the period

2000 to 2010.

The number of insurance offices has increased from 2,199

in 2000 to 12,018 in 2010.


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The first year life insurance premium grew from

Rs.19,857.28 crore in 2001-02 to Rs.1,09,894.02 crore in2009-10.

The total life insurance premium rose from Rs.

50,094.46 crore in 2001-02 to Rs. 2,65,450.37 crore in2009-10.

20 crore lives [upto 31st March 2010].


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Although, India has seen more than 10 fold rise inInsurance (coverage as well as premium), the Insurancepenetration in India is extremely lowcompared tomost developed countries.

For example, in America, in 2010, over 83.3 percent

of people had health insurance compared to just 5.51percent Indians.


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life can surprise

you

Documents

Insurance Industries an Nalysis