Contents y What is Insurance? y Evolution y Types of Insurance y Insurance Sector Reforms y Global Players ² Indian Mergers y LIC y Global Growth y Indian Scenario y Conclusion .

in law and economics. is a form of risk management primarily used to hedge against the risk of a contingent loss. in exchange for a premium.What is INSURANCE? y Insurance. from one entity to another. to be charged for a certain amount of insurance coverage y Risk management. has evolved as a discrete field of study and practice . y Insurance rate is a factor used to determine the amount. called the premium. y Insurance is defined as the equitable transfer of the risk of a potential loss. the practice of appraising and controlling risk.

Bombay Mutual Life Assurance Society ± 1st Life Insurance Company.The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life & non-life insurance businesses. 1912 .The Indian Life Assurance Companies Act enacted the 1st Law to Regulate the Life Insurance Business. 1870 .Oriental Life Insurance Company ± 1st Insurance Company. 1928 . .Evolution India 1818 .

1956: 245 Indian & foreign insurers & provident societies are taken over by the central government & nationalized. with a capital contribution of Rs. LIC Act..Contd«. 5 crore from the Government of India. 1956. . 1938: Earlier legislation consolidated & amended the Insurance Act with the objective of protecting the interests of the insuring public. viz. LIC formed by an Act of Parliament. The first General Insurance Company established in the year 1850 in Calcutta by the British.

Life Insurance (general insurance) Property (eg.Private aircraft insurance) Marine (eg. Marine hull insurance) Miscellaneous (eg.Builders risk insurance) Aviation(eg.Types of Insurance Life insurance Non .Purchase insurance) .

Objective .Structure: ± a.  1. Malhotra Committee .Competition:    Private Companies with a minimum paid up capital of Rs. Key recommendations of the reform. No Company should deal in both life and general insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. government stake 50% in insurance companies. .  2.Insurance Sector Reforms y y y In 1993.N.headed by former Finance Secretary & RBI Governor create more efficient & competitive financial system.1bn should be allowed to enter the sector. Malhotra.

 Customer Service: ‡ ‡ LIC should pay interest on delay on payment beyond 30 days. . An insurance regulatory body should be set up.  Investments : ‡ ‡ Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company. Insurance companies must be encouraged to set up unit link pension plans. Controller of insurance-a part of the Finance Ministry ± should be made independent. Regulatory Body: ‡ ‡ ‡ The insurance act should be changed.

Shriram Life Bharti Axa Life Star Union Dai-ichi IndiaFirst. Max New York Tata AIG Kotak Mahindra Old Mutual Canara HSBC OBC Life Aviva. Aegon Religare Sahara Life.Players in Life Insurance Industry in India Top Five Private Player ICICI Prudential SBI Life HDFC Standard Reliance Life Bajaj Allianz LIC Life Insurance Industry Private Companies Other Private Players Birla Sunlife. Met Life ING Vysya. Future Generali Life IDBI Fortis Life. DLF Pramerica .

Life Insurance Market Share (Premium Earned) as on July'10 Bajaj Allianz 3% ING Vysya 0% Reliance Life 3% Tata AIG 1% HDFC Standard 3% SBI Life 4% ICICI Prudential 6% Birla Sunlife 2% Aviva Kotak 1% Mahindra Old Mutual Max New York 1% Met Life 2% Sahara Life 0% 0% Shriram Future Generali Life 0% Bharti Axa Life 0% DLF Pramerica 0% IDBI Fortis Life 0% Life 0% LIC 71% Star Union Dai-ichi 0% IndiaFirst # 0% Canara HSBC OBC Life 1% Aegon Religare 0% .

Mar t s ar f ri at Lif I s rac c Aegon Star Union Dai-ichi 1% Religare 1% Canara HSBC OBC Life DLF Pramerica 2% 0% any IndiaFirst # 1% ING Vysya 2% IDBI Fortis Life 1% Bharti Axa Life 1% Future Generali Life 1% Shriram Life 2% Sahara Life 0% Bajaj Allianz 9% Met Life 2% Kotak Mahindra Old Mutual 3% Aviva 2% Max New York 6% Reliance Life 9% Birla Sunlife 7% SBI Life 16% ICICI Prudential 20% HDFC Standard 10% Tata AIG 4% .

Facing competition : LIC Vs Private players y In spite of continuous growth LIC is facing tough competition from other players(private) y Private Companies are growing at faster rate than LIC. Reasons for growth of Private Players ‡ ‡ ‡ ‡ ‡ Lucrative offer High standard service Customer centric product Better communication technique Use of Feedback for product improvement .

16 % increase in April.355 crore last year.with Rs 1. 2007 y life insurance industry . ING Vysya Life & Reliance Life saw a decline in premium collections. y general insurance players .996 crore in April¶06 y Country¶s largest life insurer ± LIC saw new premiums grow 57 % to Rs 2.684 policies against Rs 1. .982 crore in April¶07 ------.Life insurance industry grows 49% New Delhi June 14. y Life Insurance Corporation. y life insurers .Bajaj Allianz.56 % in April.134 crore in April by selling 15. It had a market share of 71. ICICI Prudential and SBI Life & 16 other players y Rs 2.49 % growth in new businesses.89.

Cr.00 69.72 39.70 0.The 15 private players together saw their business grow 32 % to Rs 848 crore with a market share of 28.00 y Shriram Life y Birla Sunlife y Kotak Mahindra Old 28.00 90.50 1.00 124.00 19.00 Mutual y ING Vysya y Met Life 26.00 y Sahara Life y Bharti Axa Life .00 33. y Insurers y ICICI Prudential y Bajaj Allianz y SBI Life y HDFC Standard y Max New York Life y Tata AIG y Aviva y Reliance Life Premium[Rs.00 70.00 22.00 4.00 48.] 271.44 %.

.08% market share. y Oriental Insurance premium collection at Rs 413 crore & a market of 13.16 % market share.15 % in business .collected Rs 124 crore premium 36 % to Rs 448 crore .5 % to Rs 271 crore . retained its number one slot by cornering 20.the second-largest non-life insurance player. y general insurance industry grew 16 % in April. y United India .28 % y ICICI Lombard .premium income rising 84.a market share of 14.97 % of the market. y New India .y ICICI Prudential .With 8 % growth in premium collection at Rs 651 crore.16 %. y Bajaj Allianz .3 % growth in business at Rs 407 crore & 12. y ICICI Lombard .72 % of market share.4.

450 billion (US$10 billion). y Insurance & Banking Services¶ contribution to the country's gross domestic product (GDP) is 7% y The funds available with the state-owned Life Insurance Corporation (LIC) for investments are 8% of GDP. y The potential of the Indian insurance industry is huge..the largest number of life insurance policies in force. .. HOW??? y «. y Total value of the Indian insurance market (2004-05) is at Rs. It has an annual growth rate of 15-20% & y «.³Indian Insurance Industry: New Avenues for Growth 2012´.

the study by the Associated Chambers of Commerce and Industry (Assocham) said. life insurance 15 billion and non. y The study added that the urban sector insurance was estimated to reach 25 billion dollars by 2010. large distances & high costs relative to returns. Source: Business News .500 % growth over the next three years - 60 billion-dollar industry by 2010 y India's more than one billion people are insurance 10 billion dollars.India's insurance sector to see 500 per cent growth by 2010: Study y India's insurance sector . said Assocham president Anil K Agarwal y He said the study had revealed that rural & semi-urban India would contribute 35 billion dollars to the Indian insurance industry by 2010. y 'A large part of rural India is still untapped due to poor distribution.

Conclusion Insurance can be summed up as ´Praying for the best « «being PREPARED for the WROSTµ. .