INSURANCE For securing you from risks

By : Lekshmi Narayanan K

INTRODUCTION

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.

HOW IT WORKS ?

Economies of Scale, i.e. the insurer collects premium from a large group of people individually through a policy and invests them in many forms which brings high returns. Once an insured person claims, the benefit is provided for the deceased.

Underwriting and investingThe business model is to collect more in premium and investment income than is paid

out in losses

Profit = Earned premium + Investment income - Incurred loss - Underwriting expenses.

Insurers make money in two ways: Through underwriting, the process by which insurers select the risks to

insure and decide how much in premiums to charge for accepting those risks.

By investing the premiums they collect from insured parties.

EVOLUTION

Insurance in modern form originated in the Mediterranean during the 13th century.

Marine insurance is the oldest form of insurance followed by life insurance and fire insurance.

The history of life insurance in India dates back to 1818 when it was conceived as a means to provide for English Widows.

INDIAN EVOLUTION

Oriental life Insurance Company was the first insurer and was incorporated at Calcutta in 1818

Insurance regulation formally began in India through the passing of two acts

- Life Insurance companies Act of 1912- Provident Fund Act of 1912

By 1938 there were 176 insurance companies.

Nationalization of insurance business took place in 1956

CURRENT SCENARIO

In 1993, Malhotra Committee was formed and several Insurance Reforms were made.

Redesigned the Structure Increased Competition Regulatory body (IRDA) Investments Customer Service

KEY TERMS

Agent - Individual who sells and services insurance policies.

Annuity - An agreement by an insurer to make periodic payments.

Coverage - The scope of protection provided under an insurance policy.

Claim  - A request for payment for a loss under the terms of an insurance policy

Policy - The written contract effecting insurance, or the certificate.

Premium - The price of insurance protection for a specified risk for a specified period of time.

Agricultural InsuranceCredit InsuranceProperty InsuranceMortgage InsurancePet InsuranceInterest Rate InsuranceIncome Protection

Types Of

Insurance

IMPORTANCE

Protection for dependants Savings for Old Age Encourage Savings Initiates Investments Credit worthiness Social Security Tax Benefits

LIST OF INSURANCE COMPANIES IN INDIA

Public Sector :National Insurance Co LtdNew India Assurance Co LtdOriental Insurance Co LtdUnited India Insurance Co Ltd

Private Sector

Bajaj Allianz General Insurance

Bharti AXA General Insurance

Cholamandalam MS

Future Generali India Insurance

ICICI Lombard Universal Sompo General Insurance

Royal Sundaram SBI General Insurance

Shriram General Insurance

Reliance General Insurance

Tata AIG General

HDFC ERGO

Magma HDI General Insurance

L & T General Insurance

Liberty Videocon General Insurance

IFFCO Tokio

% of Market Share

1) LIC2) ICICI3) 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.

STRATEGIC POLICIES

Identification of Markets Assessment of Risks Penetration and exploitation of markets control over investment and operating

costs Finding best prospects Newer Marketing Strategies

SWOT ANALYSIS

Strengths

•Strong capital and reserve

•Technically Skilled Manpower

•Innovative product for different demography

Weakness

•High administration & management expenses

•Vertical organisational structure

•Lower Reliability on Pvt. Players

Opportunities

•Inflow of global managerial & financial expertise

•Liberalization results to wider choices

•Introduce global innovations and practises

Threats

•Cut-throat competition

•New Entrants

•customers switching to other company

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.

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.

Aviva Life Insurance Company India LimitedLife Shield

AEGON Religare Life Insurance Company Limited. Decreasing Term Plan Increasing Term Plan Level Term Plan

Birla Sun Life Insurance Co. Ltd Birla Sun Life Insurance Premium Back Term Plan Birla Sun Life Insurance Term PlanBirla Sub Life Insurance HNWI Term Plan

Bharti AXA Life Insurance Company Ltd. Secure Confident

Bajaj Allianz Life Insurance Company LimitedProtector New Risk Care Term Care

Future Generali India Life Insurance Company LimitFuture Care

ING Vysya Life Insurance Company Ltd.ING Term Life Plus ING Term Life

ICICI Prudential Life Insurance Co. Ltd Life Guard Return of Premium Life Guard Regular Premium Home Assure Loan cover term insurance Life Guard Single Premium

IDBI Fortis Life Insurance Company Ltd.Home Assurance

Kotak Mahindra Old Mutual Life Insurance Limited Kotak Premium Return Plan Kotak Term / Preferred Term Plan

Life Insurance Corporation of IndiaThe Convertible Term Assurance Policy Mortgage Redemption New Bima GoldTwo Year Temporary Assurance Policy Anmol Jeevan-I Amulya Jeevan-I

Max New York Life Insurance Co. Ltd Five Yr Renewable and Convertible Plan (Non - Par) Level Term Plan

Met Life India Insurance Company Ltd.MET Suraksha - TROP MET Suraksha Met -MortgageMet-Mortgage Protector

Reliance Life Insurance Company Limited.Reliance Simple Term Plan Reliance Special Credit Guardian Plan Reliance Special Term Plan Reliance Credit Guardian Plan

Sahara India Life Insurance Co, Ltd.Sahara Kavach

Shriram Life Insurance Co. Ltd.Shri Suraksha

SBI Life Insurance Co. LtdSBI Swadhan SBI Shield

Tata AIG Life Insurance Company Limited Tata AIG Life LifePlus Tata AIG Life Raksha 10/15/20/25 Tata AIG Life Assure 

HDFC Standard Life Insurance Co. Ltd Loan Cover Term Assurance Plan Term Assurance Plan Home Loan Protection Plan

List of Policies

THANK YOU

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