Prepared by:

Niti Mehotra(15)
Sonam Agarwal (16)
Swati Kejriwal (19)
Vijitha Radhakrishnan (20)
Ritesh (21)
• With largest number of life insurance policies in force
in the world, Insurance happens to be a mega
opportunity
. in India.

•It's a business growing at the rate of 15-20 per cent

annually and presently is of the order of Rs 450
billion.

•Gross premium collection is nearly 2%of GDP and

funds available with LIC for investments are 8%of
GDP

• As per industry estimates, the life category

constitutes about 4%of the total GDP in the country.
 THIS IS

NOT ENOUGH……
• Nearly 80 per cent of Indian population is without life insurance
cover

• While health insurance and non-life insurance continues to be

below international standards.

• This part of the population is also subject to weak social

security and pension systems with hardly any old age income
security.

This indicates that growth potential for the insurance sector is

immense.
• There are two legislations that govern the sector-

 The Insurance Act- 1938

The IRDA Act- 1999

• Even today Life Insurance Corporation of India dominates Indian

insurance sector.

• With the entry of private sector players backed by foreign expertise,

Indian insurance market has become more vibrant.
•The Indian Insurance industry consists of a total of 34 players

•Life: 1 public sector player; 16 private players

•Major international players like

AIG ,Aviva, MetLife, New York Life, Prudential, Allianz, Sun Life,
Standard Life, Lombard and others
are already present with minority stakes in joint ventures with
Indian companies for both Life and Non-life segments
 New Entrants in
2008-2009
S.No. Registration Date Name of the Company
Number of Reg.

1 136 08.05 Canara HSBC Oriental Bank of Commerce Life

Insurance Company Ltd.

2 138 27.06 Aegon Religare Life Insurance Company Ltd.

3 140 27.06 DLF Pramerica Life Insurance Company Ltd.

4 142   Star Union Dai-ichi Life Insurance Co. Ltd.,

GROWTH IN ANNUAL PREMIUM EQUIVALENT
“According to IRDA guidelines, a certain portion of the life insurance
company’s business must come from rural markets.”

LIC has a much wider rural foothold, with rural business accounting for
nearly 40 per cent of the total,

While

The private life insurance companies have significantly increased their

focus on rural business in the past two years.

In rural areas, life insurance penetration in the banked segment is

estimated to be about 40%, while it is marginal at best in the unbanked
segment.
 Indian Life Insurance Segment is growing at a rapid rate due to more liberal
approach from Govt. of India and due to the upward trends in Indian
economy and share market.
 The premium income of India’s life insurance market is set to double by
2012 on better penetration and higher incomes.
Contd….

 According to a report 'Booming Insurance Market in India (2008-2011)’ by

Research and Markets, total life insurance premium in India is projected to
grow US$ 253.2 billion by 2010-11
The total premium could go up to $80-100 billion by 2012 from the present
$40 billion as higher per capita income increases per capita insurance
intensity.
 India’s ratio of life insurance premium to its GDP is around 4 per cent
against 6-9 per cent in the developed world. It could rise to 5.1-6.2 by 2012 in
tandem with the country’s demographic profile.