1.

3 : Objectives of the study:-

Below mentioned are the some objectives of the study –
• To understand the national scenario of insurance industry
• To know the recent market structure and size of both private
and public insurance sector.
• To understand the different types of premium for life
insurance industry.
• To understand the claim settlement in life insurance industry.
• To understand the performance of LIC.
1.4 : Research Methodology –
Data collection Method:- The study on life insurance industry of
India was done on the basis of secondary data. Secondary data has
contributed in a significant way to understand the scope as well as it
helped in developing the conceptual framework. Chapter 3 i.e
presentation of data analysis and interpretation has been done on the
basis of Secondary Data.
Basically the analysis of data is done through on the basis of market share
of insurance companies, performance of insurance companies, in terms
different types of premium, and claim settlement in insurance industry.
For this study some secondary data was collected from the annual report
of LIC and IRDAI , some website, some journals and articles regarding to
the Indian life insurance sector.

Page no 2
1.5 : Review of literature –
• Arora R. S [2002] highlighted that LIC was likely to face tough
completion from private insurers having large established network
throughout India.

• Prasanna Rajesh [2019] in his book “ Valuation of Indian life

insurance companies” bridges the gap between accounting and the
actuarial sides of Indian life insurance companies, by exploring the
relationships between the embedded value calculated by actuaries
and the revenue account and the balance sheet prepared by the
Accountants.

• Kumar jogendra [2005] highlighted that private insurance players

introduced a wider range of insurance products and sit up brand
promotion as part of their new strategy.

• Indian chamber of commerce (ICC) and Pricewaterhouse coopers

(PwC) 2017 in its report “India insurance perspectives” stated that
India's robust economy is expected to keep pace with the growth in
insurance premiums written. Higher personal disposable incomes will
result in higher household savings that will be channelled into
different financial savings instruments like insurance and pension
policies.

• Kulshrestha and Kulshrestha [2006] highlighted that demand for life

insurance in rural India was expanding at annual rate of 18% as
compared to 3.9% in urban areas which provides good opportunities
for insurers to perform.
Page no 3
•
1.6 : Limitations of the study –
Below mentioned are some of the Limitations of the study :-
• This data is secondary in nature.
• Lack of detailed study on the sector due to secondary source
perspective.
• Some of data analysis on life insurance industries are
encrypted and therefore presenting of data makes it difficult.
• Lack of data available on the websites.
• Preparation of such detailed project work within limited
number of pages.
• Preparation of such detailed project work within short span of
time.

1.7 : Chapter planning –

Following chapters have been maintained for writing the report-
Chapter – 1 Includes introduction which covers.
Chapter - 2 Conceptual framework
Chapter - 3 presentation of data analysis and interpretation
Chapter - 4 Conclusion and suggestions

Page No 4
 Chapter – 2
Conceptual Framework
2. National scenario of Life insurance Industry:-
The life insurance industry in India regulated by the Insurance Regulatory
and Development Authority of India (IRDAI). Twenty four life insurance
company are licensed to do insurance Business in India. Out of these
twenty four companies , LIFE INSURANCE CORPORATION OF INDIA[LICI] is
the only public sector insurance company and the rest private sector
insurance company.
India's life insurance industry has been growing at a steady pace. Over the
past few years , the Indian life insurance sector has grown at a compound
annualized growth rate of more than 11%.which is substantially faster than
the average growth rate. The life insurance industry is expected to increase
at a CAGR (Compounded Annual growth rate) of 5.3% between 2019and
2023. India's life insurance penetration (premium as% of GDP) is still low in
India. The insurance penetration was pegged at 4.2% in FY21, with life
insurance penetration at 3.2% and non-life insurance penetration at 1%.
Premiums for India’s life insurance industry is expected to reach RS.
24Lakhs crore (US$ 317.98 billion) by FY31. The market shares of private
insurance companies were 2.0% in 2003 but has grown to 33.7% in terms of
premium on the FY20. IRDAI provides a robust and reliable regulatory
platform for the insurance industry.
LIC of India continues to dominate the market:- Since opening up
the market and Constitution of IRDA 1999 , the number of private
companies has increased with time and has reached 24 in FY20 but
still LIC of India the only public sector company is dominating the
market with 61.6% market share in premium.
Page No 5
 Chapter-3
Presentation of Data analysis and interpretation
3.1: Market share of Life insurance companies:-
From the past 20 years privatisation in the insurance sector took place and till now this sector
continuously increasing its market share in terms of both premium and no. of policies. Apart
from LIC which is still holding the top position in both the aspects.
So, we have taken some top performing public and private insurance companies which are
providing life insurance facilities to people and made comparative study by analysing the market
share of premium and No. Of policies made during the year.

Public sector-
1. LIC of India:- Life insurance corporation of India(LICI) is a statutory corporation
established in 1956. It came into existence on 1st September 1956 , with the objectives of
spreading life insurance more widely specially to the rural areas with a view to reach all
insurable persons in the country providing them a financial cover at a reasonable cost.
Over 245 insurance companies and provident socities were merged to create the state
owned Life insurance corporation of India.

Private sector-
1. HDFC LIFE:- It is a joint venture between Housing Development Finance
corporation Ltd(HDFC) and standard life aberdeen of United Kingdom. HDFC Life
was established in 2000 becoming the first private sector life insurance
company in India.
2. SBI LIFE:- It is an Indian life insurance company which was started as joint
venture between State Bank of India(SBI)which is largest state-bank of India and
French financial Institution BNP PARIBAS CARDIF.
3. ICICI PRUDENTIAL LIFE INSURANCE:- It is a life insurance company in India.
Established as a joint ventures between ICICI BANK and Prudential Corporation
Holding Ltd. ICICI Prudential life began its operations in fiscal year 2001 and has
consistently been amongst the top player in the Indian life insurance sector. The
first insurance company in India to be listed on NSE and BSE.

Page No 6
This data will help to study about the market share of insurance companies in terms
of Market share of a) Insurance premium b) No. Of policies and to compare it
between the both public and private insurance companies.
Market Share of insurance companies 2020-21
Sl. No Companies Premium No. Of policies
1 LICI 52.78% 74.70%
2 HDFC LIFE 14.25% 3.40%
3 SBI LIFE 9.15% 5.30%
4 ICICI PRUDENTIAL 6.35% 3.12%
LIFE
5 OTHERS 17.48% 13.50