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erging-Trends-in-Insuranceector

PRESENTED BY:RUBY JHA

INTRODUCTION

Insurance is nothing but a system of spreading the


risk of one onto the shoulders of many.
While it becomes somewhat impossible for a man
to bear by himself 100% loss to his own property or
interest arising out of an unforeseen contingency,
Basic Human trait is to be averse to the idea of risk
taking.

OBJEC
TIVE
To
To
un

udnedresrtsatnadndthe
thelifleifeinin
susruarnacnecesec
InIdnid
ai.a.
setcotroirnin
To
To
lelaeranrnabaobut
ouLt ILCIC&&ICIICCI p
To
ICI rpurduednetnia
To
knkonw
. l.
owthtehescsocpoep of
tila
e olif fliefeinin
susruarnacnecein I
innIdnid
ai.a.

SCOPE

Effect of liberalization
Trends in insurance sector
Impact of budget on insurance sector
Product offered by LIC & ICICI Prudential
Impact of financial crisis on LIC

LIMITATION
Life Insurance is a vast subject. It is not possible
to provide information regarding all the
different types of policies which provides
different benefits. The project would have
been much better if the comprehensive
study of all the different types of policy
provided by different companies is
undertaken.


NSURANCE
INSURANCEINDUSTRY:
INDUSTRY:
LASSIFICATION
CLASSIFICATION

Working of Insurance

y
r
t
s
u
d
n
I
l
a
b
Glo
s
c
i
t
s
i
t
a
St
Emerging Markets
(Total Premium, figures in $billion)

Taiwan

17.3

China

13.4

India

7.2

Hong Kong

6.1

Israel

5.8

Singapore

5.0


Globalization of Life Insurance Market

Significant channel for household savings into


capital formation

GDP penetration of 4.1%

Statutory requirements
to provide reach to
rural areas

Life Insurance

Total Assets Under Management of Life


Insurance Cos. as on March 31, 2008- Rs.
8,50,000 crores

2nd largest financial


service in India after
banking
Total number of lives
insured and on books as
on March 31, 2008- 22
Crs

Age at entry

18 70 years last birthday

18- 60 years

Deferment period

2 - 35 years

Min. term = 5 years


Max. term = 30 years

Vesting age

50 -79 years last birthday

50- 70 years

Minimum single premium

Rs. 10,000

Min. SA = Rs. 50,000/-

Mode of premium payment

Single ,yearly, half yearly, quarterly, monthly , SSS

----

Minimum amount of annual

RS 2500

----

Yearly, half-yearly, quarterly & monthly

Yearly, half-yearly, quarterly &

premium
Mode of annuity payment

monthly
Tax benefits

Tax benefits u/s 80CCC(I) for

Same as in case of Jeevan Suraksha I.

investment up to Rs. 10,000/(deducted from taxable income).


Choice of retirement date

Flexibility option not available.

The annuitant has the


flexibility to postpone the
vesting from originally chosen
vesting date up to a maximum of 70
years of age.

Open Market Option

Flexibility option not available.

This option gives annuitant


the flexibility to buy a pension
from any other Company of his choice.

FINDINGS

1. Hybrid distribution channel


2. Difficulty in designing Marketing Mix
3. Regulatory trend
4. Claim Management
5. Customer Servicing
6. FDI and growth

RECOMMENDATION

Corporate must go to the basics of service marketing


such as under promise and over delivery
Customization of offerings, mainly in product and
distribution
Pockets of service is to be done for quicker service and
other operation
Advanced knowledge in the insurance is to be imparted
to the employees in Insurance industry
Digitalization and Relationship is to be kept in policy
marketing

CONCLUSION
ase
h
p
g
n
i
v
l
se
o
a
v
h
e
p
n
g
a
n
i
n
v
owwi in an evofl actions inin
n
s
i
t
e
k
r
a rket is no ect a lot o f actions
heemm
1. T
xppect a lot o
annee
1. Thhere oane cc
x
w here one .a
n
w ing days .
igg
e
r
o
f
r
o
f
s
i
m ing days ediment s for fore nn
coo
p ediment ity cap o
c mcurrent imm
quuity cap onrole of
hee current i lipke 26% ee
2. T
q gulatory ole of
2. Tahrticipationn like 26%
eddreregulatory ernt
p articipatio er, ill definn
m e nt
p ign partn er, ill defi ery developp
reeign partn e Regulatoory develo tm
foo
) inin
c e Regulat the indussrtyry
f rA (Insurann
)
c tchdog of the indu
IRDDA (Insurae w
a tchdog of
IR hority- th e w
t hority- th ssaetc
Auu
e ss etc
A tsion businn
i
n
peension bus e
p

The will need to make sure right now that


all their infrastructure is in place so that
they can reap the benefit of an "unlimited
potential."
In this paper, the trend is more of general.
It is important to study segment wise,
may be rural & urban, unit linked and nonunit linked etc.