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. 


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 µInsurer¶ µInsured 

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, 2- SBI Life, 3- Tata AIG Life, 4- HDFC Standard, 5- ICICI Prudential Life Insurance, 6- Birla Sunlife, 7- Aviva Life Insurance, 8- Kotak Mahindra Old Mutual 9- Max New York Life 10- Met Life. 11- DLF Pramerica Life Insurance Co. Ltd 12- IDBI Fortis Life Insurance Co. Ltd. 13- Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd. 14-.Aegon Religare Life Insurance Co. Ltd 15- Shriram Life Insurance Co. Ltd 16- Bharti Axa Life Insurance Co. Ltd 17- Future Generali India Life Insurance Co.Ltd. 


players in Non- Life Insurance market 

Public Sector
1-National Insurance Co. Ltd, 2-Oriental Insurance Ltd, 3-New India Assurance Co. Ltd 4-United India Insurance Co. Ltd. 

Private Sector

1-Bajaj Allianz 2-Cholamandalam 3-Future Generlai 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% New India Assurance Co. Ltd ± 18 % Private Sector ± 39.5 % ICICI-Lombard ± 13% 

Major segments covered under general Insurance
1-Fire Insurance 2-Motor Insurance 3-Marine Insurance 4-Engineering Insurance 5-Home Insurance 6-Travel Insurance 7-Health Insurance 8-Rural Insurance 9-Bancassurance 10-Flood insurance 11-Credit insurance 12-Commercial insurance 13-Dental 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 MoneyMoney-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. 2009The 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(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. 32This impressive growth in the market has been driven by liberalization, with new players significantly enhancing product awareness and promoting consumer education and information.

Government Deregulations  Variety of products  Lack of awareness

Shortage of trained insurance professionals & Technician

Insurance consultant  Huge population

Consumer perceptions 
Creates threat among rival firms itself.

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

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.

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