ppt. on insurance sector in India

1. Insurance Sector In India
For securing you from risks

2. PRESENTED BY-
 Manish Chauhan

3. INTRODUCTION –WHAT IS INSURANCE ?
 Insurance Is A Means Of Protection From Financial
Loss. It Is A Form Of Risk Management Primarily
Used To Hedge Against The Risk Of A Contingent,
Uncertain Loss.
Or
 An Arrangement By Which A Company Or The State
Undertakes To Provide A Guarantee Of
Compensation For Specified Loss, Damage, Illness,
Or Death In Return For Payment Of A Specified
Premium.

4. TYPES OF INSURANCE
INSURANCE
LIFE
INSURANCE
Protection
Plans
Saving
Plans
Investment plans Retirement plans
Group
plans
Children’s
Plan
GENERAL
INSURANCE
Fire
Insurance
Marine
Insurance
Health
Insurance
Motor vehicle
Insurance

5. MAIN DIFFERENCE B/W LIFE INSURANCE &
GENERAL INSURANCE
 Life Is Very Long-term In Nature — Life Insurance
Can Cover Risks Over Many Decades.
 General Insurance Cover Risks Usually For A
Shorter Period, Such As One Year.

6. EVOLUTION OF INSURANCE SECTOR IN INDIA
 Some of the important milestones in the life insurance business in
India are:
 1818: Oriental Life Insurance Company, the first life
insurance company on Indian soil started functioning.
 1870: Bombay Mutual Life Assurance Society, the first
Indian life insurance company started its business.
 1912: The Indian Life Assurance Companies Act enacted
as the first statute to regulate the life insurance business.
 1938: Earlier legislation consolidated and amended to by
the Insurance Act with the objective of protecting the
interests of the insuring public.

7. CONTINUED….
 1956: 245 Indian and foreign insurers and provident societies are
taken over by the central government and nationalized. LIC
formed by an Act of Parliament, viz. LIC Act, 1956, with a capital
contribution of Rs 5 core from the Government of India.
 Similarly, in 1972, 107 general insurers were nationalized through
the passing of General Insurance Business (Nationalization) Act,
1972.
 The existing 107 insurers were amalgamated and grouped into
Five companies, viz., National Insurance Company (NIC), New
India Assurance Company (NIAC), Oriental Insurance Company
(OIC), United India Insurance Company (UIIC), and General
Insurance Corporation (GIC).
 Then insurance industry transformed into monopoly and
Oligopolistic state or public sector insurance industry in India.

8. REGULATORY BODY
Insurance Regulatory & Development Authority Of
India(IRDAI) is the controlling and regulatory apex body
in the country for insurance sector and its chairman and
members are appointed by Government of India. IRDA’s
HQ is located at Hyderabad. It was constituted as a body to
regulate and develop the insurance industry in 1999, and
was incorporated as a statutory body in April, 2000.
 The Key objectives of IRDAI is promotion of competition
to satisfy customer choice with lower premiums. The
IRDA opened up market in August 2000.
 Foreign companies were allowed ownership up to 26%.

9. ROLE OF IRDAI
 Protecting the interest of policyholders.
 Establishing guidelines for the operations of
insurers, and brokers.
 Specifying the code of conduct, qualifications,
and training for insurance intermediaries and
agents.
 Promoting efficiency in the conduct of insurance
business.
 Regulating the investment of funds by insurance
companies.

10. LIST OF INSURANCE COMPANIES IN INDIA
 Public Sector :
 National Insurance Co Ltd
 New India Assurance Co Ltd
 Oriental Insurance Co Ltd
 United India Insurance Co Ltd
 Private Sector
 BAJAJ ALLIANZ GENERAL INSURANCE
 ICICI LOMBARD
 L & T General Insurance
 TATA AIG GENERAL
 IFFCO TOKIO

11. MAJOR PLAYERS IN LIFE INSURANCE
COMPANIES
1.Bajaj Allianz Life Insurance Company Ltd
2.Birla Sun Life Insurance Company Ltd
3.HDFC Standard Life Insurance Company Ltd
4.ICICI Prudential Life Insurance Company Ltd
5.Max New York Life Insurance Company Ltd
6.SBI Life Insurance Company Ltd
7.Tata AIG Life Insurance Company Ltd
8.Reliance Life Insurance Company Ltd
9.Kodak Life Insurance Company Ltd
10.Bharti AXA Life Insurance Company Ltd

12. MAJOR PLAYERS IN GENERAL INSURANCE
COMPANIES
1.Bajaj Allianz General Insurance Company Ltd.
2.Icici Lombard General Insurance Company Ltd.
3.Reliance General Insurance Company Ltd.
4.Bharti AXA General Insurance Company ltd.
5.SBI General Insurance Company Ltd.
6.L & T General Insurance Company Ltd.
7.Tata AIG General Insurance Company Ltd.
8.Agriculture Insurance Company Of India Ltd.

13. GROWTH OF INSURANCE SECTOR
 Globally, the share of life insurance business
in total premium was 56.8 %. However, the
share of life insurance business in Asian
region was only 28.9 %, which is in
contradiction with the global trend.
 For India, the share of life insurance
business in total insurance business was
very high at 80.2 % while the share of non-
life insurance business was small at 19.8 %.

14. CONTINUED….
 In life insurance business, India is ranked 10th
among the 88 countries, for which data are
published by Swiss Re. During 2012, the life
insurance premium in India declined by 6.9 %
(inflation adjusted). During the same period, the
global life insurance premium increased by 2.3
%.
 However, the share of Indian non-life insurance
premium in global non-life insurance premium
was small at 0.66 % and India ranks 19th in
global non-life insurance market.

15. INSURANCE SECTOR IN INDIA- ISSUES AND
CHALLENGES
 Public vs. Private-
In insurance sector the Public sector is still
dominating after even a decade of opening the doors
of this sector. This situation does put some burden on
the private sector companies to innovate and
differentiate themselves so that they could have a
better share in the market.
 Client Servicing-
Making the potential customers understand about
insurance products in a simple and meaningful way
poses a big challenge in front of insurance
companies.

16. CONTINUED....
 Staying profitable-
According to a research the break even period in
the life insurance business has increased from the
expected 9-10 years to about 13-15 years now. It
is already under the pressure of massive
expansion costs but also has to face the problem
of diminishing volumes as policy lapses increase
year on year.

17. HUMAN RESOURCE POLICIES
 Human Resource Planning
 Training & Development
 Performance Appraisal & Review
 Employee Participation
 Compensation & Rewards
 Healthy & Management
 Job Design

18. CONTINUED…….
 Maintaining Effective Employer-employee
Relationship
 Staffing

19. MARKETING STRATEGIES
 Superior To Any Other Savings Plan
 Door Hangers
 Quick Borrowing- As Home Loan,student Loan
 Interest Rates Higher Than Others
 Word-of-mouth
 Ads On Social Media- Facebook & Twitter
 Process Should Be Customer Friendly.

20. THREE MAJOR PLAYERS OF INSURANCE SECTOR
1. Life Insurance Corporation of India (LIC):-
LIC of India is the 1st position. LIC of India is
the largest Insurance Company in India founded
in 1956 and it is an Indian state-owned insurance
group Headquartered in Mumbai, India. LIC
offers to its customers such as insurance plans,
pension plans, special plans and group schemes.

21. PRODUCTS OR SERVICES OF LIC
 Insurance Plans
 Pension Plans
 Health Plans
 Withdrawl Plans
 Micro Insurance Plans
 Special Plans
 Unit Plans

22. LEADERS OF LIC
Shri S. K. Roy
( Chairman, LIC of India )
 S K Roy took charge as, Chairman, Life
Insurance Corporation of India, on 29.06.2013.
He began his career in LIC of India as a Direct
Recruit Officer of the 11th batch, in 1981. He did
his MA and LLM from University of Delhi and
University of Warwick, respectively .He then
acquired his Ph.D from University of Burdwan,
on International Labour Migration.

23. 2. SBI LIFE INSURANCE COMPANY LIMITED:-
 SBI Life Insurance is a joint venture between State
Bank of India and BNP Paribas Cardif. SBI owns
74% of the total capital and BNP Paribas Cardif the
remaining 26%. SBI Life Insurance has an
authorized capital of Rs. 2,000 crores and a paid up
capital of Rs 1,000 crores.

24. PRODUCTS OR SERVICES OF SBI LIFE
INSURANCE COMPANY LIMITED
 Retirement Plans
 Saving Plans
 Unit Linked Plans Individual Plans
 Child Plans
 Protections Plan
 Corporate Solutions Plans GROUP
 Group Micro Insurance Plans PLANS
 SBI Life – E-shield Plan ONLINE
 SBI Life – E-wealth Insurance Plan PLANS

25. LEADER OF SBI LIFE INSURANCE
COMPANY LIMITED
Smt. Arundhati Bhattacharya
Chairman(SBI LICL.)
 Arundhati Bhattacharya is an Indian banker. She
is the first woman to be the Chairperson of State
Bank Of India. In 2015, she was listed as the 30th
most powerful woman in the world by Forbes.
 She studied English Literature at Calcutta’s Lady
Brabourne College and then at Jadavpur
University,Kolkata

26. 3.THE NEW INDIA ASSURANCE COMPANY LIMITED
 THE New India Assurance Co Ltd, today, is a 100
% Govt. owned multinational general insurance
company operating in 28 countries and
headquartered at Mumbai, India. Our global business
crossed Rs.16000 Cr. . Founded by Sir Dorabji
Tata in 1919, we have been market leaders in India
in non-life business for more than 40 years. Our
Indian business touchedRs 13209 Cr in 2014-15. We
are the only direct insurer in India rated A-(Excellent
– Stable outlook) by AM Best. "CRISIL has
reaffirmed its ' AAA/STABLE ' rating on The New
India Assurance Company Limited indicating that
the company has the Highest degree of Financial
strength to honor its Policyholders obligations"

27. PRODUCTS OF NIACL
 Personal Insurance
 Commercial Insurance
 Industrial Insurance
 Liability Insurance
 Social Insurance

28. LEADER OD NIACL
 Mr. G. Srinivasan(CMD)
Mr. G. Srinivasan is Chairman cum Managing Director of The
New India Assurance Company Limited. He was born on 19th
July, 1958. He is B.Com graduate and an Associate of Institute
of Cost Accountants of India and also Fellow of Insurance
Institute of India. He has vast experience in the General
Insurance Industry at various places in India and abroad having
handled both operations and well as Corporate management
level portfolios. He was Managing Director of New India
Assurance Co. (Trinidad & Tobago) Ltd., in the Carribbean. He
was CMD of United India Insurance Co. Ltd, Chennai. He is a
member of many committees of Government of India, IRDA,
etc. He is Chairman, General Insurance Council and GIPSA
(General Insurance Public Sector Association), Delhi. He is a
Director on many Boards including General Insurance
Corporation of India, Mumbai.

29. CONCLUSION
 Today most of the insurance companies are recruiting agents who are
professionals who can sell their unsought insurance products.
 Companies also provide better policies based on customer needs and
demands.
 In this Competitive market companies provide better service Quality,
Pricing, Advertisement and Promotional activities.
 CRM is used to retain the customers and communicate with them.
 By another 20 yrs 50% of population is expected to have at least one
sort of an insurance.

30. ASK ME ABOUT THE TOPIC IF YOU WANT…
 IF ANY QUERIES:-

31. THANK YOU