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A Study on Performance of Micro -Insurance in India

Article · July 2018

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

Keywords— Micro-insurance, Financial performance,

Agents, Policies, Premium.

I. INTRODUCTION
Insurance is the one of the tools to predict the risk and
provide financial support to the policyholders. In India
24 life insurance companies (1-public sector (LIC) and
23 –private sector), 23 non-life insurance companies (6-
public sector and 17 –private sector), 6 health insurance
companies and 2 reinsurance companies operating their
business in a very effective manner. Life insurance
provides the benefit upon the death of the insured. Non-
life insurance gives protection against the properties of
the insured.
A. Micro-insurance
Micro insurance provides the various facilities against
all life and non-life to the insured. Micro insurance is a
promotional tool to the lower income group
policyholders. Its main focus is to cover the risk to the
persons whom income level is very low. Most of the
shareholders are preferred to invest in life or non-life
insurance market only, but microinsurance 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 microinsurance
industry. The following are the various types of Micro-
insurance:
• Life insurance
• Health insurance
• Property insurance

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

S.No Name of Insurer Name of the product frame of the micro-insurance companies marketing
growth in India. In future the shareholder wants to invest
Life Insurance • LIC's Jeevan Madhur in the micro-insurance field also. Micro-insurance is one
1
Corporation of India • LIC's Jeevan Mangal of the fastest growing insurance industry, which offering
Shriram Life Insurance many kinds of products.
2  Shri Sahay. Sri Sahay (AP)
Co. Ltd.
D. Statement of the problem
Star Union Dai-ichi
 SUD Life Paraspar Most of the shareholders are preferred to invest in life
3 Life Insurance Co.
Suraksha Plan or non-life insurance market only, but micro-insurance
Ltd.
also one of the developing areas. From this study it is
DLF Pramerica Life  DLF Pramerica
4 clear that there is a low attraction in micro-insurance
Insurance Co. Ltd SarvSuraksha products. It becomes necessary to study the performance
ICICI Prudential Life  ICICI Prud. Sarv Jana of micro-insurance, which support to compete with other
5
Insurance Co. Ltd Suraksha countries gave the high experience in this field and
IDBI Fortis Life  IDBI Fortis Group Micro increased the investment in microinsurance industry.
6 Through this study stakeholders understand the micro-
Insurance Co. Ltd. insurance Plan
insurance preference and its previous year value.
ING Vysya Life
7  ING Vysya Saral Suraksha
Insurance Co. Ltd. E. Objectives of the study
Aviva life ins. Co. The following are the main objectives of the study:
8  Grameen Suraksha
India Pvt. Ltd. • To analyze the growth of micro-insurance agents in
9 Met Life India  Met Vishwas India.
 Sahara Sahayog (Micro • To analyze the growth of micro-insurance companies new
Sahara India Life
10 Endowment Insurance policy portfolio.
Insurance Co. Ltd. • To study the growth of premium income of micro
without profit plan)
• SBI Life Grameen Shakti insurance companies in India.
SBI Life Insurance Co.
11 • SBI Life Grameen Super F. Hypothese
Ltd.
Suraksha
H01: There is no significant difference in the number of micro
• Birla Sun Life Insurance insurance agents in the company-wise.
Birla Sun life ins. Co. Bima Suraksha Super H02: There is no significant difference in the number of policies
12
LTD • Birla Sun Life Insurance in micro insurance agents in the company-wise.
Bima Dhan Sanchay. H 03: There is no significant difference in the insurance
• Bajaj Allianz Jana Vikas company’s premium income.
Yojana
G. Methodology
Bajaj Allianz Life • Bajaj Allianz Saral
13 The study is empirical in nature and executed using the data
Insurance Co. Ltd Suraksha Yojana
• Bajaj Allianz Alp Nivesh published by IRDAI. The research study is solely based on
Yojana.
secondary data. The other required information has been collected
from various academic journals and literatures.
• Ayushman Yojana.
• Navkalyan Yojana H. Period of the study
TATA AIG Life
14 • Sampoorn Bima Yojana The present study covers a period of ten years, taking from
Insurance Co. Ltd.
• Tata AIG Sumangal Bima 2007-2008 to 2016-2017.
Yojana
Source: IRDAI
II. DATA ANALYSIS
In this part the researcher analyzed the growth of the
C. Importance of the study microinsurance and its performance for the period from 2007-2008
This micro-insurance company’s financial to 2016-2017.
performance is indicating the past ten year growth in the
insurance field. This study is very important to the public A. Growth in no. of Micro-insurance agents- Company-wise
as well as the insurance companies, because it gives the The below table II shows that the growth in the number of micro
insurance agents for the period from 2007-2008 to 2016-2017.
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

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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 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

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 10 16642.30 9790.89 3096.15 5.375 9 .000 16642.30 Significant

Total
Source: Computed shows that there is a significance in the number of micro insurance
agents in the company-wise. It concludes that the growth in the
Result:
number of micro insurance agents for the period from 2007-2008 to
From the table III the calculated value t (5.375) is greater than 2016-2017.
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 B. Growth in no. of policies in micro insurance- Companywise

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

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.
TABLE IV
NO. OF POLICIES IN 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

Aviva 310 3757 11222 6322 9789 17328 17328 16

Bajaj
10226 127 3756 42107
Allianz
Bharti
AXA
Birla
280659 568647 290395 256226 123147 91760 91760 66497 61843 62156
Sunlife
Canara
HSBC
DHFL
Pramerica
Edelweiss
230 1916 2527 5045
Tokio
Exide Life
Future
Generali
HDFC 176464 221276 199774 199774 200046 280065 229438
ICICI
234299 344926 324889 321009 296323 212650 212650 125227 29753 52584
Prudential
IDBI
Federal
India First
Kotak
36772 47172
Mahindra
Max Life
PNB
734 125 3501 9243 5886 489 489
Metlife
Reliance
Nippon
Sahara 604 324 1483 6282 10940 2205 2205 6529 2768

SBI Life 695 8071 8071 5773 4267 5408

Shriram
Star
Union
TATA
28832 10039 36888 31359
AIA
Private
84019 80903 68243 18114 27848 28832 561339 416027 458655 475269
Total
LIC 610851 998809 699733 793660 695904 561339 2205820 400341 452291 480892
Industry
1541218 1985145 2951235 3826783 4340235 2205820 2767159 816368 910946 956161
Total
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 V
NO. OF POLICIES OF MICRO INSURANCE COMPANIES

One-Sample t-test

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

Variable N Mean Std. Std. Error t df Sig. Mean Remark

Deviation Mean (2-tailed) Difference

From theSource:
tableComputed
V the calculated value t (5.714) is greater than C. Growth in premium income of micro insurance- Companywise
the table value at 5% significant level. P value (0.000) is less than The below table VI shows that the growth in premium income of
the significant value. Since H02 is rejected. t (9) = 5.714, p = .000 micro insurance companies in India for the period from 2007-2008
shows that there is a significance in the number of policies in micro to 2016-2017.
insurance agents in the companywise. It concludes that the growth

TABLE VI
PREMIUM INCOME OF MICRO INSURANCE COMPANIES (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

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 3118.74 14982.51 12305.76 10603.49 9949.05 8635.77 9565.06 2889.45 3171.73 3821.5
Source: IRDAI
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
Significant
Industry Total 10 7904.3060 4363.36374 1379.81677 5.725 9 .000 7899.30600

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