Presentation on Insurance
Presented by -
Rupesh Chavan
Rahul Meher
Umesh Gaikwad
HISTORY OF INSURANCE
► The origin of life insurance in India can be
traced back to 1818 with the establishment
of the Oriental Life Insurance Company in
Calcutta.
► The first insurance company insuring Indian
Lives at standard rates was BOMBAY
MUTUAL LIFE INSURANCE COMPANY which
was formed insurance 1870.
MEANING OF INSURANCE
Insurance, in general terms refers to the practice of guaranteeing a
sum of money to the owner or possessor of a valuable asset for a
limited period of time, to cover the cost of any damage to that asset
arising out of any contingency.
In the process of insurance there must necessarily be two
parties
‘Insurer’
‘Insured
INSURANCE BUSINESS IN INDIA
Insurance industry, as on 1.4.2000, comprised mainly two players:
1-Life Insurance 2- General Insurance
1-Life Insurance
MEANING
Life insurance means insuring your life to save for the future of your
family .
2- General Insurance
MEANING
This sector covers almost everything related to property, vehicle, cash,
household goods, health and also one's liability towards others.
key players in Life Insurance market
Public Sector:
1- Life Insurance Corporation (LIC) of India,
Private Sector:
1- Bajaj Allianz, 10- Met Life.
2- SBI Life, 11- DLF Pramerica Life Insurance Co. Ltd
3- Tata AIG Life, 12- IDBI Fortis Life Insurance Co. Ltd.
4- HDFC Standard, 13- Canara HSBC Oriental Bank of
5- ICICI Prudential Life Commerce Life Insurance Co. Ltd.
Insurance, 14-.Aegon Religare Life Insurance Co. Ltd
6- Birla Sunlife, 15- Shriram Life Insurance Co. Ltd
7- Aviva Life Insurance, 16- Bharti Axa Life Insurance Co. Ltd
8- Kotak Mahindra Old Mutual 17- Future Generali India Life Insurance
9- Max New York Life Co.Ltd.
key players in Non- Life Insurance market
Public Sector Private Sector
1-National Insurance Co. Ltd, 1-Bajaj Allianz
2-Oriental Insurance Ltd, 2-Cholamandalam
3-New India Assurance Co. Ltd 3-Future Generlai
4-United India Insurance Co. Ltd. 4-HDFC Ergo
5-ICICI Lombard
6-IFFCO-TOKIO
7-Reliance
8-Royal Sundaram
9-Tata AIG
10-Bharti AXA General Insurance Co. ltd
11-Shriram General Insurance Co. Ltd
12-Apollo DKV Insurance Co. Ltd
13-Star Health & Allied Insurance Co. Ltd
14-Universal Sompo
Gross Domestic Product
life insurance account to 2.5% and General insurance account to 0.65% of
India's GDP in term of premiums
Insurance penetration in India
The life insurance penetration in India increased from 1.77 per cent in
2000 to 4.10 per cent in 06-07, before declining to 4.0 per cent in 07-08.
The general insurance penetration increased from 0.55 per cent in 2000 to
0.60 per cent in 06-07 and remained at the same level in 07-08.
Insurance premium per capita in India
The life insurance density which is premium per capita in US$ terms stood
at US$ 40.4 in 07-08 as against US$ 33.2 in 2006-07
The general insurance density was, however, lower at US$ 6.2 in 07-08 as
against (US$ 5.20 in 06-07 ).
Market share of Life Insurance at the end of FY2008
Public Sector - 48.1% Private Sector - 51.9%
LIC - 48.1% ICICI Prudential - 13.7%
Market share of Non- Life Insurance at the end of FY2008
Public Sector - 60.5% Private Sector – 39.5 %
New India Assurance Co. Ltd – 18 % ICICI-Lombard – 13%
Major segments covered under general Insurance
1-Fire Insurance 8-Rural Insurance
2-Motor Insurance 9-Bancassurance
3-Marine Insurance 10-Flood insurance
4-Engineering Insurance 11-Credit insurance
5-Home Insurance 12-Commercial insurance
6-Travel Insurance 13-Dental insurance
7-Health Insurance 14-Reinsurance
15-Wedding insurance
Role of IRDA
► Educate public on regulatory safeguards,
investment guidelines and plough back of profits.
► Inform public on Social and Rural Obligations of
private players.
► By enacting the IRDA act 1999. the Govt of India
effectively ended Lick’s monopoly and opened the
door for private insurance companies Collaboration
of Indian Companies with Foreign Companies.
Types of Life Insurance Policy
► Term Life Policy
► Whole Life Policy
► Endowment Policy
► Money-back Policy
► Unit Linked Insurance Plan
► Pension Plan or Annuities
► Joint Life Policy
New Insurance
► Bancassurance
► Commercial insurance
► Labor insurance
► Student insurance
► Flood Insurance
► Reinsurance
Growth of the Insurance Sector
► India's insurance sector is zooming to show an
unprecedented progressive growth of more than
200% by the period of 2009-09.
► The business of insurance to reach at Rs.2000
billions in coming 2 years from the present level of
Rs. 500 billion.
► Insurance sector has been characterized as the
booming sector of the Indian arena, which has
shown the growth rate of more than 15 per cent
to 20 per cent.
Booming Insurance Market in India
(2008-2011)
► With a huge population base and large untapped
market, insurance industry is a big opportunity
area.
► 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.
SWOT ANALYSIS
Strengths Weakness
Government Deregulations Shortage of trained insurance
professionals & Technician
Variety of products
Lack of awareness
Opportunities Threat
Insurance consultant Consumer perceptions
Huge population Creates threat among rival
firms itself.
Findings
► The monopoly of LIC has been broken because
private Insurance companies came into the
market.
► 90% of total population know about LIC
Insurance Company.
► Now, a days people preferred to invest the money
in Insurance policy rather than in Banks because
of better benefits of Insurance policies growth
money with life cover
Recommendations
► Advertisement should be done on television
and especially posters and banners.
► A public relation officer should be appointed
in the company who with customers and
their need .
► Insurance company should show more
commitment with the customer.
Conclusion
► Insurance is an integral part of any personal
financial plan.
► Insurance is a form is risk management in
which the insured transfers the cost of potential
loss to another entity in exchange for monetary
compensation known as the premium.
► Life insurance provides you with the
opportunity to protect yourself and your family
from personal risk exposures
Thank you
