Piyali Chatterjee (6)

Sham Srinivas (23)

India- Insurance market
 India is the fifth largest life insurance market in the emerging
insurance economies globally and is growing at 32-34%
annually.
 This impressive growth in the market has been driven by
liberalization, with new players significantly enhancing
product awareness and promoting consumer education and
information.
 The strong growth potential of the country has also made
international players to look at the Indian insurance market
 Moreover, saturation of insurance markets in many
developed economies has made the Indian market more
attractive for international insurance players
RECENTS TRENDS IN
INDIA
 The US$ 41-billion Indian insurance industry is the fifth
largest life insurance market in the emerging insurance
economies globally, growing at 32-34 per cent annually

 Life insurance in India has the First Year Premium (inclusive

of Single Premium) segment accounting for US$ 24 billion
and Non-Life Insurance—US$ 5.6-billion industry—with
motor and health segments accounting for 56 per cent of
total business

 Currently, there are 22 life insurance firms operating in India

and as per industry estimates, the life category constitutes
about 4 per cent of the total GDP in the country.
RECENTS TRENDS IN
INDIA
 The foreign direct investment (FDI) limit in the insurance
space for foreign players is capped at 26 per cent—
permissible under the automatic route subject to obtain a
licence from the official regulator, Insurance Regulatory and
Development Authority (IRDA)—but the government is
planning to raise it to 49 per cent and a bill to give effect to
the proposal is pending in the Rajya Sabha

 The life insurance industry has contributed more than four

per cent to the country’s gross domestic product (GDP)
since liberalisation and non-life’s contribution has been at
0.6 per cent for the last nine years
Players in the market
 LIC (Life Insurance Corporation of India) still remains the largest
life insurance company accounting for 64% market share. Its
share, however, has dropped from 74% a year before, mainly
owing to entry of private players with innovative products and
better sales force

 ICICI Prudential Life Insurance Co Ltd is the biggest private life

insurance company in India. It experienced growth of 58% in new
business premium, accounting for increase in market share to
8.93% in 2007-08 from 6.97% in 2006-07

 Bajaj Allianz Life Insurance Co Ltd has reported a growth of 52%

and its market share went up to 6.98% in 2007-08 form 5.66% in
2006-07. The company ranked second (after LIC) in number of
policies sold in 2007-08, with total market share of 7.36%.
Players in the market
 SBI Life Insurance Co Ltd in terms of new number of policies
sold, the company ranked 6th in 2007-08. New premium
collection for the company was Rs 4,792.66 crore in 2007-
08, an increase of 87% over last year

 Reliance Life Insurance Co Ltd Total collected was Rs

2,792.76 crore and its market share went up to 2.96% from
1.23% a year back. It now ranks 5th in new business
premium and 4th in number of new policies sold in 2007-08

 HDFC Standard Life Insurance Co Ltd with an income of Rs

2,680 crore in FY2007-08, registering a year-on-year growth
of 64%. Its market share is 2.88% and it ranks 6 th among
the insurance companies and 5th amongst the private
players.
Players in the market
 Birla Sun Life Insurance Co Ltd market share of the
company increased from 1.22% to 2.11% in 2007-08. The
company moved to the 7th position in 2007-08 from 8the a
year before, pushing down Max New York Life insurance
company

 Max New York Life Insurance Co Ltd has reported growth of

73% in 2007-08. Total new business generated was Rs
641.83 crore as against Rs 387.51 crore. The company was
pushed down to the 8th position from 7th in 2007-08.
Players in the market
 Kotak Mahindra Old Mutual Life Insurance Ltd the fiscal
2007-08, the company reported growth of 80%, moving from
the 11th position to 9th. It captured a market share of 1.19%
in 2007-08. Last year the company doubled its branch
network to 150 from 74

 Aviva Life Insurance Company India Ltd ranking dropped to

10th in 2007-08 from 9th last year. It has presence in more
than 3,000 locations across India via 221 branches and
close to 40 bancassurance partnerships. Aviva Life
Insurance plans to increase its capital base by Rs 344 crore.
With the fresh investment, total paid-up capital of the insurer
would go up to Rs 1,348.8 crore
Key Findings
 Taking into account the changing socio-economic
demographics, rate of GDP growth, changing consumer
behavior and occurrences of natural calamities at regular
intervals, the Indian life insurance market is expected to
reach the value of around Rs 1683 Billion in the year 2009

 The market is expected to grow at a CAGR of more than

200% YOY from the year 2006

 In 2006-07, pension premium contributed about 22.11% to

total premium income of insurers. Interestingly, the figure in
the first nine months to December 2005 was 25.22%.
Key Findings
 In the non-life segment, the established players control 65%
of the market. So it is their monthly performance that
determines how the market as a whole would perform

 In Motor Insurance Business, Public sector covers almost

68% of the market value whereas the private sector just had
32% market share till September 2006

 In Accident Insurance Business, private sector players have

almost 53% market share with ICICI Lombard as the lead
player. Public sector players constitute about 47% market
value with New India as the leading player followed by
United India.
Key Findings
 SBI Life Insurance has been ranked the no. 1 life insurer
across the globe, by the Million Dollar Round Table (MDRT)
members. MDRT is an association of the world’s best life
insurance sales professionals

 The country's largest life insurance player, Life Insurance

Corporation of India (LIC), is celebrating its 53rd anniversary
week starting September 1, 2009 and has grown to 35.8
million policies and a sum assured of US$ 80.3 billion in
2008-09. It has collected US$ 325.27 million through
alternate channels in the first four months of the current
fiscal
Key Findings
 MetLife India Insurance became the first private sector life
insurer to provide guaranteed monthly income along with
other regular benefits like tax incentives and bonuses with
the launch of 'Met Monthly Income Plan' in August 2009

 Public sector companies continue to dominate the general

insurance market accounting for more than 58 per cent of
market share. The four public sector general insurers—
United India Insurance Company, National Insurance
Company, New India Assurance and Oriental Insurance
Company— were able to marginally increase their market
share to 59.74 per cent from their combined market share of
59.4 per cent during April 2008-February 2009
 LIFE INSURANCE-current
Strategy
Immediate access to New
Markets

Improve sales
Increase in Market
effectiveness & after sales
Penetration
service

Insurer
Reduce reliance on
Develop new financial traditional distribution
products more efficiently channel

Combine Cost Saving &

Increased Profitability
Shriram General Insurance
Company
 Shriram General Insurance Company Limited is a Joint Venture
between Shriram Capital Limited (Part of Shriram Group) and
Sanlam Limited. In this Joint Venture, Shriram Capital Limited
holds 74% of Equity and Sanlam Limited holds the balance 26%
of the Equity

 Sanlam is the largest General Insurance Company in South

Africa. Sanlam Limited was established in 1918, demutualised in
1998 and is a leading financial services group in South Africa
engaged in the business of general insurance, life insurance,
investment and independent financial services

 The market capitalization of Sanlam is approximately USD 6

billion and has over USD 60 billion of assets under management
Shriram General Insurance
Company
 Shriram Group, established in 1974, having a turnover of
USD 8 billion is among the leading corporate houses in India
and is a major player in the Indian financial services sector.
Shriram Group’s focus is on financial services that reach out
to a large number of common people – providing them
opportunities to improve their prosperity

 Shriram Group has 5 million customers, 80,000 Agents

Associates, 30,000 Employees, and 1300 branches spread
all over the Country
Insurance Products:
 Motor Insurance

 Fire Insurance

 Engineering

 Miscellaneous:
 Householder's Umbrella Package Insurance
 Shopkeeper Umbrella Package Insurance
 Shri Suraksha Insurance
 Personal Accident Insurance 
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