See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/338357542

A Study on Performance of Micro -Insurance in India

Article · July 2018

CITATIONS READS

0 578

2 authors:

Jansirani P. A. Muthusamy
Alagappa University Alagappa University
17 PUBLICATIONS   4 CITATIONS    59 PUBLICATIONS   32 CITATIONS   

SEE PROFILE SEE PROFILE

Some of the authors of this publication are also working on these related projects:

Foreign Direct Investment and Economic Growth View project

GENERAL INSURANCE View project

All content following this page was uploaded by A. Muthusamy on 03 January 2020.

The user has requested enhancement of the downloaded file.

 ISSN 2319 – 1953
International Journal of Scientific Research in Computer Science Applications and Management Studies

A Study on Performance of Micro - Insurance in India

Dr.A.Muthusamy #1, Jansi Rani.P*2
#1
Professor, Department of International Business, Alagappa University, Karaikudi, India.
*2
Ph.D. Research Scholar, Department of Commerce, Alagappa University, Karaikudi, India.
1
muthuroja67@rediffmail.com,2jansirani7860@gmail.com

Abstract— Micro insurance is a supporting tool to the lower  Crop insurance

income group policyholders. Its main focus is to cover the risk to
the persons whose income level is very low. Most of the
shareholders are preferred to invest in life or non-life insurance
market only, but micro-insurance also one of the developing
areas. It becomes necessary to study the performance of micro-
insurance, which support to compete with other countries gave
the high experience in this field and increased the investment in
micro-insurance industry. In this study, the researcher analyzed
the performance of micro-insurance in India and its growth. For
this purpose a number of micro insurance agents, number of
policies and premium have been analyzed. All the Indian life
insurers who provide all the micro insurance products are taken
as the study sample. The data collected from an IRDA annual
report from 2007-2008 to 2016-2017.
 Disaster insurance
 Unemployment insurance
 Reinsurance
B. Micro-insurance companies in India
In India 24 life insurance companies (1-public sector (LIC)
and 23 –private sector) providing their life insurance products,
but in that only 14 life insurance companies providing micro-
insurance products. It is clearly indicated that there is a low
attraction in micro-insurance products. The following are the
micro-insurance companies with their products:
TABLE I
MICRO INSURANCE COMPANY AND THEIR PRODUCT

Keywords— Micro-insurance, Financial performance, Agents, S.No Name of Insurer Name of the product
Policies, Premium.
Life Insurance  LIC's Jeevan Madhur
1
I. INTRODUCTION Corporation of India  LIC's Jeevan Mangal
Insurance is the one of the tools to predict the risk and Shriram Life Insurance
2  Shri Sahay. Sri Sahay (AP)
provide financial support to the policyholders. In India 24 life Co. Ltd.
insurance companies (1-public sector (LIC) and 23 –private Star Union Dai-ichi
sector), 23 non-life insurance companies (6-public sector and  SUD Life Paraspar
3 Life Insurance Co.
17 –private sector), 6 health insurance companies and 2 re- Suraksha Plan
Ltd.
insurance companies operating their business in a very DLF Pramerica Life  DLF Pramerica Sarv-
effective manner. Life insurance provides the benefit upon the 4
Insurance Co. Ltd Suraksha
death of the insured. Non-life insurance gives protection ICICI Prudential Life  ICICI Prud. Sarv Jana
against the properties of the insured. 5
Insurance Co. Ltd Suraksha
A. Micro-insurance IDBI Fortis Life  IDBI Fortis Group Micro
6
Micro insurance provides the various facilities against all Insurance Co. Ltd. insurance Plan
life and non-life to the insured. Micro insurance is a ING Vysya Life
7  ING Vysya Saral Suraksha
promotional tool to the lower income group policyholders. Its Insurance Co. Ltd.
main focus is to cover the risk to the persons whom income Aviva life ins. Co.
8  Grameen Suraksha
level is very low. Most of the shareholders are preferred to India Pvt. Ltd.
invest in life or non-life insurance market only, but micro- 9 Met Life India  Met Vishwas
insurance also one of the developing areas. It becomes  Sahara Sahayog (Micro
necessary to study the performance of micro-insurance, which Sahara India Life
10 Endowment Insurance
support to compete with other countries gave the high Insurance Co. Ltd.
without profit plan)
experience in this field and increased the investment in micro-
 SBI Life Grameen Shakti
insurance industry. The following are the various types of SBI Life Insurance Co.
11  SBI Life Grameen Super
Micro-insurance: Ltd.
Suraksha
 Life insurance
 Birla Sun Life Insurance
 Health insurance
Birla Sun life ins. Co. Bima Suraksha Super
 Property insurance 12
LTD  Birla Sun Life Insurance
 Disability insurance
Bima Dhan Sanchay.

IJSRCSAMS
Volume 7, Issue 4 (July 2018) www.ijsrcsams.com
 ISSN 2319 – 1953
International Journal of Scientific Research in Computer Science Applications and Management Studies

 Bajaj Allianz Jana Vikas The following are the main objectives of the study:
Yojana  To analyze the growth of micro-insurance agents in
Bajaj Allianz Life  Bajaj Allianz Saral India.
13  To analyze the growth of micro-insurance companies
Insurance Co. Ltd Suraksha Yojana
 Bajaj Allianz Alp Nivesh new policy portfolio.
Yojana.  To study the growth of premium income of micro
insurance companies in India.
 Ayushman Yojana.
 Navkalyan Yojana F. Hypothese
TATA AIG Life
14  Sampoorn Bima Yojana H01: There is no significant difference in the number of
Insurance Co. Ltd.
 Tata AIG Sumangal Bima micro insurance agents in the company-wise.
Yojana H02: There is no significant difference in the number of
Source: IRDAI policies in micro insurance agents in the company-wise.
H03: There is no significant difference in the insurance
C. Importance of the study
company’s premium income.
This micro-insurance company’s financial performance is
indicating the past ten year growth in the insurance field. This G. Methodology
study is very important to the public as well as the insurance The study is empirical in nature and executed using the data
companies, because it gives the frame of the micro-insurance published by IRDAI. The research study is solely based on
companies marketing growth in India. In future the secondary data. The other required information has been
shareholder wants to invest in the micro-insurance field also. collected from various academic journals and literatures.
Micro-insurance is one of the fastest growing insurance
industry, which offering many kinds of products. H. Period of the study
The present study covers a period of ten years, taking from
D. Statement of the problem 2007-2008 to 2016-2017.
Most of the shareholders are preferred to invest in life or
non-life insurance market only, but micro-insurance also one II. DATA ANALYSIS
of the developing areas. From this study it is clear that there is In this part the researcher analyzed the growth of the micro-
a low attraction in micro-insurance products. It becomes insurance and its performance for the period from 2007-2008
necessary to study the performance of micro-insurance, which to 2016-2017.
support to compete with other countries gave the high
experience in this field and increased the investment in micro- A. Growth in no. of Micro-insurance agents- Company-wise
insurance industry. Through this study stakeholders The below table II shows that the growth in the number of
understand the micro-insurance preference and its previous micro insurance agents for the period from 2007-2008 to
year value. 2016-2017.
E. Objectives of the study
TABLE II
NO. OF MICRO INSURANCE AGENTS – COMPANY-WISE (2007-2008 TO 2016-2017)

2007- 2008- 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016-
Insurer
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Aegon 0 0 0 0 0 0 0 0 0 0

Aviva 0 1 1 1 2 659 667 667 10 0

Bajaj Allianz 168 193 210 210 210 0 0 0 457 520

Bharti AXA 0 0 0 0 0 0 0 0 0 0

Birla Sunlife 77 104 129 33 90 97 97 56 51 55

Canara HSBC 0 0 0 0 0 0 0 0 0 0

DHFL Pramerica 0 0 0 0 0 0 0 0 0 0

Edelweiss Tokio 0 0 0 0 0 0 1 1 1 1

IJSRCSAMS
Volume 7, Issue 4 (July 2018) www.ijsrcsams.com
 ISSN 2319 – 1953
International Journal of Scientific Research in Computer Science Applications and Management Studies

Exide Life 0 0 0 0 0 0 0 0 0 0

Future Generali 0 0 0 0 0 0 0 0 0 0

HDFC 0 0 0 0 58 0 0 0 0 1

ICICI Prudential 0 14 14 47 0 74 78 79 0 0

IDBI Federal 0 0 0 0 0 0 0 2 2 2

India First 0 0 0 0 0 0 0 1906 7798 15155

Kotak Mahindra 0 0 0 0 0 0 0 0 0 3

Max Life 0 0 0 0 0 0 0 0 0 0

PNB Metlife 0 0 0 9 12 14 14 14 14 14

Reliance Nippon 0 0 0 0 0 0 0 0 0 0

Sahara 8 13 15 15 15 5 0 0 0 0

SBI Life 0 0 0 0 0 0 0 20 22 22

Shriram 1 1 1 0 421 523 523 523 523 0

Star Union 0 0 0 0 0 0 0 0 0 0

TATA AIA 164 277 400 443 443 452 276 114 112 126

Private Total 418 603 770 758 1251 1824 1656 3382 8990 15899

LIC 4166 6647 7905 9724 11546 15228 18401 19379 18574 19301

Industry Total 4584 7250 8676 10482 12797 17052 20057 22761 27564 35200
Source: IRDAI
TABLE III
NO. OF MICRO INSURANCE AGENTS

One-Sample t-test
Std. Std. Error Sig. Mean
Variable N Mean t df Remark
Deviation Mean (2-tailed) Difference

Industry Total 10 16642.30 9790.89 3096.15 5.375 9 .000 16642.30 Significant

Source: Computed
Result:
From the table III the calculated value t (5.375) is greater
than the table value at 5% significant level. P value (0.000) is
less than the significant value. Since H01 is rejected. t (9) =
5.375, p = .000 shows that there is a significance in the
number of micro insurance agents in the company-wise. It
TABLE IV
NO. OF POLICIES IN MICRO INSURANCE AGENTS - COMPANY-WISE (2007-2008 TO 2016-2017)
concludes that the growth in the number of micro insurance
agents for the period from 2007-2008 to 2016-2017.
B. Growth in no. of policies in micro insurance- Company-
wise
The below table IV shows that the growth in the number of
policies in micro insurance agents company-wise in India for
the period from 2007-2008 to 2016-2017.

2007- 2008- 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016-
Insurer
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

IJSRCSAMS
Volume 7, Issue 4 (July 2018) www.ijsrcsams.com
 ISSN 2319 – 1953
International Journal of Scientific Research in Computer Science Applications and Management Studies

Aegon

Aviva 310 3757 11222 6322 9789 17328 17328 16

Bajaj Allianz 10226 127 3756 42107

Bharti AXA

Birla Sunlife 280659 568647 290395 256226 123147 91760 91760 66497 61843 62156

Canara HSBC

DHFL Pramerica

Edelweiss Tokio 230 1916 2527 5045

Exide Life

Future Generali

HDFC 176464 221276 199774 199774 200046 280065 229438

ICICI Prudential 234299 344926 324889 321009 296323 212650 212650 125227 29753 52584

IDBI Federal

India First

Kotak Mahindra 36772 47172

Max Life

PNB Metlife 734 125 3501 9243 5886 489 489

Reliance Nippon

Sahara 604 324 1483 6282 10940 2205 2205 6529 2768

SBI Life 695 8071 8071 5773 4267 5408

Shriram

Star Union

TATA AIA 28832 10039 36888 31359

Private Total 84019 80903 68243 18114 27848 28832 561339 416027 458655 475269

LIC 610851 998809 699733 793660 695904 561339 2205820 400341 452291 480892

Industry Total 1541218 1985145 2951235 3826783 4340235 2205820 2767159 816368 910946 956161
Source: IRDAI
TABLE V
NO. OF POLICIES OF MICRO INSURANCE COMPANIES

One-Sample t-test
Std. Std. Error Sig. Mean
Variable N Mean t df Remark
Deviation Mean (2-tailed) Difference

IJSRCSAMS
Volume 7, Issue 4 (July 2018) www.ijsrcsams.com
 ISSN 2319 – 1953
International Journal of Scientific Research in Computer Science Applications and Management Studies

Industry Total 10 2230107.0 1234117.37 90262.18 5.714 9 .000 2230107.0 Significant

Source: Computed
Result:
From the table V the calculated value t (5.714) is greater
than the table value at 5% significant level. P value (0.000) is
less than the significant value. Since H02 is rejected. t (9) =
5.714, p = .000 shows that there is a significance in the
number of policies in micro insurance agents in the company-
wise. It concludes that the growth in the number of policies in
TABLE VI
PREMIUM INCOME OF MICRO INSURANCE COMPANIES (2007-2008 TO 2016-2017)
micro insurance agents for the period from 2007-2008 to
2016-2017.
C. Growth in premium income of micro insurance- Company-
wise
The below table VI shows that the growth in premium
income of micro insurance companies in India for the period
from 2007-2008 to 2016-2017.

(Premium in ’Lakhs)
2007- 2008- 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016-
Insurer
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Aegon
Aviva 1.52 18.17 58.87 36.4 58.52 51.39 51.39 0.08
Bajaj Allianz 85.47 2.42 91.59 1227.99
Bharti AXA
Birla Sunlife 147.69 263.72 186 168.14 53.88 47.95 47.95 41.24 47.62 26.94
Canara HSBC
DHFL
Pramerica
Edelweiss Tokio 0.21 2.68 4.44 8.01
Exide Life
Future Generali
HDFC 352.93 442.55 399.54 399.54 399.57 559.76 459.12
ICICI Prudential 122.05 288.18 256.08 281.44 306.12 338.22 338.22 220.95 115.87 115
IDBI Federal
India First
Kotak Mahindra 73.54 94
Max Life
PNB Metlife 18.69 7.19 4.21 10.63 23.45 0.32 0.32
Reliance Nippon
Sahara 8.21 4.9 12.24 39.43 72.89 16.77 16.77 551.95 130.07 36.87
SBI Life 2.28 30.89 30.89 22.17 17.91 24.2
Shriram
Star Union
TATA AIA 43.99 10.65 177.08 242.05
Private Total 154.17 255.2 217.69 75.25 59 43.99 929.29 1249.22 1217.95 2234.37
LIC 537.81 839.78 735.09 964.22 1018.54 929.29 8635.77 1640.23 1953.78 1587.13
Industry Total 3118.74 14982.51 12305.76 10603.49 9949.05 8635.77 9565.06 2889.45 3171.73 3821.5
Source: IRDAI

IJSRCSAMS
Volume 7, Issue 4 (July 2018) www.ijsrcsams.com
 ISSN 2319 – 1953
International Journal of Scientific Research in Computer Science Applications and Management Studies

TABLE VII
PREMIUM INCOME OF MICRO INSURANCE COMPANIES

One-Sample t-test
Std. Std. Error Sig. Mean
Variable N Mean t df Remark
Deviation Mean (2-tailed) Difference

Industry Total 10 7904.3060 4363.36374 1379.81677 5.725 9 .000 7899.30600 Significant

Source: Computed

Result:
From the table VII the calculated value t (5.725) is greater
than the table value at 5% significant level. P value (0.000) is
less than the significant value. Since H03 is rejected. t (9) =
5.725, p = .000 shows that there is a significance in the
insurance company’s premium income. It concludes that the
growth in the insurance companies premium income for the
period from 2007-2008 to 2016-2017.

III. CONCLUSION
Micro-insurance is one of the fastest growing insurance
industry, which offering many kinds of products. This study
reveals that the micro-insurance company’s financial
performance is indicating the past ten year growth in the
insurance field in India. Hence, it can be concluded that the
growth: in the number of micro insurance agents, in the
number of policies in micro insurance agents and in the new
insurance premium of micro insurance agents for the period
from 2007-2008 to 2016-2017.
Finally, this study concluded that the rapid growth in micro
insurance in India in past 10 years. So the shareholders are
surely investing their money in micro insurance.

REFERENCES
[1] Mona Jindal, Micro Insurance in India: An Empirical Study,
International Journal of Research in Business Management (IMPACT:
IJRBM) ISSN(P): 2347-4572; ISSN(E): 2321-886X, Vol. 5, Issue 6,
Jun 2017, 11-16.
[2] http://www.policyholder.gov.in
[3] https://www.irdai.gov.in
[4] Annual report of selected company’s web sites.

IJSRCSAMS
Volume 7, Issue 4 (July 2018) www.ijsrcsams.com

View publication stats