Professional Documents
Culture Documents
Synopsis on
GIC( General Insurance Corporation )
Submitted to
Dr. Homi Bhabha state University for Partial completion of the degree
of Bachelor B.com [banking &insurance]
Under the faculty of commerce
By
GULNAAZ SHAIKH
Div : B
ROLL NO-76
[MMS,M.COM]
FEBRUARY 24
TABLE OF CONTENTS
Sr.no Title of the Chapters Page
No.
1 CHAPTER 1 3
INTRODUCTION
2 CHAPTER 2 5
LITERATURE REVIEW
3 CHAPTER 3 6
PROBLEM DEFINITION
4 CHAPTER 4 7
HYPOTHESIS
5 CHAPTER 5 7
OBJECTIVES
6 CHAPTER 6 7
METHODOLOGY
CHAPTER 1
INTRODUCTIO
The General Insurance Corporation of India (GIC Re) is the largest reinsurance company in
India. Established in 1972 under the provisions of the General Insurance Business
(Nationalization) Act, GIC Re was formed with the objective of facilitating the growth of the
general insurance industry in India while also providing reinsurance services to both domestic
and international markets.
As a state-owned enterprise, GIC Re operates as the national reinsurer, playing a pivotal role in
supporting the insurance market by offering risk management solutions to insurers and ensuring
stability within the industry. The corporation's activities encompass a wide range of sectors,
including fire, marine, engineering, aviation, agriculture, health, and casualty insurance.
With its headquarters in Mumbai, GIC Re has a global presence, operating through branches and
subsidiaries across various countries. It has established itself as a trusted partner for insurance
companies worldwide, offering expertise, financial stability, and a comprehensive suite of
reinsurance products and services tailored to meet the diverse needs of its clients.
Throughout its history, GIC Re has been instrumental in fostering innovation, promoting
sustainable growth, and contributing to the overall development of the insurance sector in India.
With a commitment to excellence and a focus on customer satisfaction, the corporation continues
to uphold its position as a leading reinsurance provider both domestically and internationally.
The General Insurance Corporation of India (GIC Re) is a state-owned reinsurance company
based in Mumbai, India. Its history is closely intertwined with the development of the insurance
industry in India.
• GIC Re was established on November 22, 1972, by the Government of India under the
General Insurance Business (Nationalization) Act of 1972.
• The Act nationalized the general insurance business in India and formed four subsidiary
companies, namely National Insurance Company Ltd., New India Assurance Company
Ltd., Oriental Insurance Company Ltd., and United India Insurance Company Ltd., which
were the primary insurers.
• GIC Re was created as a reinsurance company to provide support and stability to the
emerging Indian insurance market.
• During its initial years, GIC Re played a significant role in stabilizing the insurance
industry in India and providing reinsurance support to domestic insurance companies.
• Over time, GIC Re expanded its operations both domestically and internationally. It
began offering its reinsurance services in various sectors such as fire, marine, motor,
engineering, agriculture, aviation, health, and liability.
• The company also played a pivotal role in supporting government initiatives such as rural
insurance and crop insurance schemes.
• With the liberalization of the Indian economy in the 1990s, GIC Re underwent significant
modernization and diversification efforts.
Recent Developments:
• In 2017, the Indian government announced plans to list GIC Re on the stock exchanges
through an initial public offering (IPO), aiming to divest a portion of its stake in the
company.
• The IPO of GIC Re was launched in October 2017 and met with significant investor
interest.
• In recent years, GIC Re has continued to strengthen its presence in both domestic and
international markets, leveraging its expertise and experience in reinsurance.
CHAPTER 2
LITERATURE REVIEW
• Historical Evolution: Scholars often explore the historical evolution of GIC, tracing its
origins, milestones, and transformational phases. This includes its establishment in 1972
under the General Insurance Business (Nationalization) Act, its subsequent growth, and
its role in shaping India's insurance landscape.
• Organizational Structure and Business Model: Studies delve into GIC's organizational
structure, governance mechanisms, and business model. This involves analyzing its
subsidiaries, joint ventures, and strategic partnerships, as well as its underwriting
practices, distribution channels, and risk management framework.
• Industry Trends and Challenges: Scholars explore broader industry trends and
challenges impacting GIC, such as technological disruption, evolving customer
preferences, regulatory reforms, macroeconomic factors, and competitive dynamics. This
includes analysis of global insurance trends and their implications for GIC's future
trajectory.
CHAPTER 3
PROBLEM DEFINITION
Problem Statement: Despite its established presence in the market, GIC faces several
challenges that impede its operational efficiency and market competitiveness. These challenges
include:
a. Legacy Systems: GIC may still rely on legacy systems and outdated processes, which hinder
agility and limit the ability to respond swiftly to market demands.
c. Customer Experience: With increasing customer expectations, GIC needs to enhance its
customer experience through personalized services, seamless claims processing, and efficient
communication channels.
e. Competitive Pricing: Pricing strategies play a significant role in attracting and retaining
customers. GIC needs to balance competitive pricing with sustainable profitability.
g. Talent Management: GIC requires skilled talent equipped with domain knowledge and
technical expertise to drive innovation and navigate complexities in the insurance landscape.
Acquiring and retaining top talent can be challenging.
CHAPTER 4
HYPOTHESIS
Null Hypothesis (H0): There is no significant difference in the financial performance of General
Insurance Corporation (GIC) before and after implementing the proposed
changes/strategies/initiatives.
Alternative Hypothesis (H1): There is a positive and statistically significant difference in the
financial performance of General Insurance Corporation (GIC) after implementing the proposed
changes/strategies/initiatives.
CHAPTER 5
OBJECTIVES
1.To find out general insurance and which are the companies involved in companies involved in
it.
CHAPTER 6
METHODOLOGY
• Primary data was collected through interviews. Primary data was collected through
interviews.