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Insurance may be described as a social device to reduce or

eliminate risk of life and property. Under the plan of insurance, a large number of people
associate themselves by sharing risk, attached to individual

The risk, which can be insured against include fire, the peril of
sea, death, incident, & burglary. Any risk contingent upon these may be insured against at a
premium commensurate with the risk involved.

Insurance is actually a contract between 2 parties whereby one

party called insurer undertakes in exchange for a fixed sum called premium to pay the other
party happening of a certain event.

Insurance is a contract whereby, in return for the payment of

premium by the insured, the insurers pay the financial losses suffered by the insured as a
result of the occurrence of unforeseen events.

With the help of Insurance, large number of people exposed to a

similar risk makes contributions to a common fund out of which the losses suffered by the
unfortunate few, due to accidental events, are made good.

Q1. How the training of Insurance plays an important role in the

development of Insurance Business.
Till 1999, there were not only private insurance
companies in Indian insurance sector. The Govt , of India, then introduced the insurance
IRDA ( Insurance Regulatory Development Authority) Act 1999. During that time LIC
( Life Insurance Corporation of India) only one player in the market and having a monopoly
that time LIC was not giving steady training it’s employee and did not adopt new
technology. So they could not provide better service its customer which is drawback in the
development of Insurance business. Thereby deregulating the insurance sector and allowing
private companies into the insurance, further, foreign investment was also allowed and
capped at 26% holding in the Indian insurance companies. Than private companies have
been starting in the development of Insurance business for 9 years.

Training helps to better service. Earlier LIC (Life Insurance
corporation of India) was only one player in the market so it having a monopoly in the
business. But LIC was not providing better service than private player came into the market
also they provide better service to customers. So private player get growth than LIC
decrease it’s holding in the market.

Training is need before the new product came into the market. So
help to the training employees get better knowledge of new the product or different product.
So they have through knowledge of the product from that they easily convince the customer
when they are going to sale product.

Training help to the improve the quality of service Eg: Earliar LIC is
not giving service of the customer but now days they give training their employee about
current technology and started service. So insurance company can give qualitative service
which is increase the business.

More advisors:-
Helps to training not only individual person themselves but broker,
corporate agent also allowing to sale of life insurance which is helps to development of
insurance business.

Increase business:-
Helps to training employee become professional and get through
knowledge of the product. So employee get more confidant for the convince to customers
when they are going to sail life insurance product. Ultimately it is increase to the business
Team sprit:-
Training helps to the increase team sprit. Eg; One particular team
they having a target 50 policy in a month so with help of training they get close each others
and achieve their target to gather and mutual understanding help to whole team. Life
insurance company get increase the business.

Training of Insurance plays an important role in the

development of Insurance Business

Q2. There is absolutely high opportunities for private insurers-examine

Insurance sector was opened up for private participation with the
performance of the Insurance Regulatory and Development Authority Act, 1999. The
insurance sector was opened up for private participation nine years ago. For years now, the
private players are active in the liberalized environment. The insurance market have
witnessed dynamic changes which includes presence of a fairly large number of insurers
both life and non-life segment. Most of the private insurance companies have formed joint
venture partnering well recognized foreign players across the globe. After this every private
insurance sector player was coming in market one after one. Private Player tries to capture
market and give their efforts increase for their business.
During this time period 33 private players entered in the insurance sector.
Interestingly, eight players – four each in life and non-life insurance – entered the arena
during Mar 2007-Aug 2008. Currently, the insurance sector comprises 1 re-insurance, 21 life
insurance, and 19 general insurance companies. Major international players like AIG, Aviva,
MetLife, New York Life, Prudential, Allianz, Sun Life, Standard Life and Lombard are
already present with minority stakes in joint ventures with Indian companies for both Life
and Non-life segments

Private Player have good opportunity increase business in an
Indian market because if we talk about Indian life insurance business. In India 20%
population have insurance rest of 80% population have not insurance. Therefore this 20%
insurance from that 50 % share held by LIC (Life Insurance Corporation of India) and rest
of 50% held by private players so we can say these aspects show vast potential of the Indian
insurance industry.

➢ Fast growing economy.

➢ Increasing per –capita income in India.
➢ Saving behavior.
➢ High growth of ULIP industry.
➢ Dedicated Employees.
➢ Well Efficient Management.
➢ Technology.
➢ Adaptability to changes.

Market share:
The Private Life Insurance Companies have put a fantastic effort to
break into the monopoly of LIC India. LIC controlled 100% of the market in 2000 and since
then its market share has slipped to less than 50% and at the end of October-08, it was at
37.1%. Private Insurance Companies control 62.9% of the Life Insurance market in India.
Here is the market share of various Life Insurance
Companies in India at the march of FY2008-2009

Premium income
Private insurance sector also increase their premium income
year after year. here we can see private sectorsalso earn from the Indian market because
premium income increase now we can say people are also invest private insurance company
otherworld’s they are believe of private sector.

Name of Company First year Premium

(2006-07, US$

Public Sector
LIC 13642
Private Sector
ICICI Prudential 1281
Bajaj Allianz 1041

HDFC Standard Life 395

Birla Sun Life 214

Tata AIG 156

Name of Company First year Premium

(2006-07, US$
Public Sector
New India Assurance 1222
National Insurance 929
Oriental Insurance 960
United India Insurance 855
Private Sector
ICICI Lombard 732
Bajaj Allianz 440
IFFCO Tokio 280
Reliance General
Tata AIG 180

Growth of private insurance company

During the 2000 to 2008 private insurance sector growth in
Indian market. We can see are as follow:

YEAR 2001- 2002 2003- 2004- 2005- 2006- 2007-

02 -03 04 05 06 07 08
LIC 98% 94% 87% 78% 72% 64.5% 49.5%

PRIVATE 2% 6% 13% 22% 28% 35.5% 50.5%


private insurance sector are increasing which fruit full for us but so
many draw back or weakness is their.

Misguide to the customers.

Many more players in the market and they have large share India with
population over the billion. But reality is that completion is increase so insurance companies
also misguide to the people for sail their insurance policy. We can see so many such type of
case now days.
Delay in claim pay:
Time of the claim play, now days we have seen lost of case private
player delay for claim play. And give mentally harassment to customers.
Reaching Out To Customers:
No doubt, the customer profile in the insurance industry is changing with
the introduction of large number of divergent intermediaries such as brokers, corporate
agents, and ban assurance.
We have seen above all information so we can say
absolutely high opportunity for private insurance companies.

Q3. Trace the future of Indian Insurance

I think that there will be a bright future for the insurance advisers
in India, because, now a days there is enormous awareness about insurance amount people
and its growing. Due to software zoom in India, people started earning more and also paying
more taxes. To save the taxes they pay, they are willing to save in insurance to safeguard
their future and their family dependants with financial security.


India's insurance sector is zooming to show an unprecedented
progressive growth of more than 200% by the period of 2009-12. The Associated Chambers
of Commerce and Industry of India has clocked out the fact that during this period, private
players in the industry will see a growth of about 140 per cent, owing to the adoption of the
aggressive marketing techniques in comparison of the growth rate of 35 per cent-40 per cent
achieved by the state owned insurance companies. The chamber is expected to poise the
business of insurance to reach at Rs.2000 billions in coming 2 years from the present level
of Rs. 500 billion. With the result of adoption of the intense marketing strategies by the
private players, the declination has been witnessed in respect of the share of the state owned
insurance companies captured in the market. The market share fallout has been noticed in
context of such companies like GIC, LIC, which have come down to nearly 70 per cent in
the past 4-5 years from the 97 per cent. The experts have fore casted the more severe
competition in the insurance sector likely to be occurred in the near future. Till recently,
insurance sector was majority driven by the government sector players but now many
private sector multinational players have come into the picture. Like HDFC, ICICI, Kotak,
Mahindra and Birla Sunlife. Insurance sector has been characterized as the booming sector
of the Indian arena, which has shown the growth rate of more than 15 per cent to 20 per
cent. Insurance in India is put under the federal subject and is governed by the Insurance
Act, 1938, the Life Insurance Corporation Act, 1956 and General Insurance
Business(Nationalization) Act, 1972, Insurance Regulatory and Development
Authority(IRDA) Act, 1999 and by various other acts.
Insurance sector are increasing bust I think still some changes are require so we can
see steady growth of the insurance. So according to me some suggestions are as follow:-
Having of awareness among the people

That is the biggest limitation found in this sector. Most of the people
are not aware about the importance and the necessity of the insurance in their life. They are
not aware how useful life insurance can be for their family members if something happens to
them. So Insurance companies should have spread awareness of insurance and important of

Remove Perception of the people towards Insurance sector

People still consider insurance just as a Tax saving device. So today
also there is always a rush to buy an Insurance Policy only at the end of the financial year
like January, February and March making the other 9 months dry for this business. so
insurance companies should remove this type of perception like Insurance does not give
good returns

Having a awareness about the earning opportunity in the

Insurance sector
People still today are not aware about the earning
opportunity that the Insurance sector gives. After the privatization of the insurance sector
many private giants have entered the insurance sector. These private companies in order to
beat the competition and to increase their Insurance Advisors to increase their reach to the
customers are giving very high commission rates but people are not aware of that.

To day completion in insurance company become stiff. So

every company recruit advisor and advisor have also target so company should take care
advisor are not mislead to people for complete their target
Give more focus on rural area:-
According to IRDA norms every insurance companies have to some
percentage of insurance in rural sector but still LIC only one company achieve their target so
rest of company require to give more focus on rural area.

The Indian insurance industry has traveled a long way
ever since businesses were regulated tightly & concentrated by few insurers of
the public sector. The insurance industry is a key component of the financial
infrastructure of an economy, and its viability and strengths have far reaching
consequences for not only its money and capital markets,' but also for its real
sector. The launch of new developments in the insurance industry saw many new
international insurers entering the market. It also gave way to propagation of
innovative goods & channels for distribution & the supervisory values rising.

Indian per capita revenue is likely to grow up to more than

6% in coming 10 years & with developing awareness, the Indian insurance rate
is estimated to rise at a striking rate in India. Till recently, only 20% of the Indian
population is covered by different schemes of life insurance. It is also seen that
the healthcare penetration rate as well as schemes of non-life insurance in Indian
insurance market are well under the worldwide levels. These aspects show vast
potential of the Indian insurance industry.