Insurance scenario in india –issues and opportunities
1. INSURANCE SCENARIO IN INDIA –
ISSUES AND OPPORTUNITIES
Presented by,
Mahak ( MBA_GEN 1st year)
Roll no.-14101082
2. BASICS OF INSURANCE
What is Insurance?
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.
History of Insurance
It started from Lloyd’s coffee house London
First policy issued in England in 1583
In India first policy issued in 1870
Classes of Insurance
A. Life insurance
B. General insurance
General insurance is further classified:-
1.Fire insurance
2.Marine insurance
3.Miscellaneous insurance
4. Regulatory Body
Insurance Regulatory & Development Authority (IRDA) 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 IRDA 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 49%
Role of IRDA :
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.
5. STRUCTURE OF INDIAN INSURANCE INDUSTRY
Life insurance
Public sector undertaking( life insurance
corporation of India)
Private sector undertaking(22 companies)
General insurance
Public sector undertaking(general insurance
corporation of India)+4 subsidiaries
Private sector undertaking(21comapnies)
6. • Life insurance in its modern form came to India from England in the
year 1818.
• Oriental life Insurance company, started by Europeans In Calcutta was
the first life Insurance company on Indian soil.
• Before 1912 India had no Legislation to Regulate Insurance Business.
• In the year 1912, the life insurance companies act the provident fund
act were passed.
7. LIFE INSURANCE SECTOR OF INDIA -OVERVIEW
Market destiny Market shares
http://www.ibef.org/industry/insurance-sector-
india.aspx
8. GENERAL INSURANCE CORPORATION OF INDIA
The entire general insurance business in India was nationalized by
the Government of India (GOI) through the General Insurance Business
(Nationalization) Act (GIBNA) of 1972. 55 Indian insurance companies and 52
other general insurance operations of other companies were nationalized
through the act.
The General Insurance Corporation of India (GIC) was formed in pursuance
of Section 9(1) of GIBNA. It was incorporated on 22 November 1972 under
the Companies Act, 1956 as a private company limited by shares. GIC was
formed to control and operate the business of general insurance in India.
10. PEST Analysis- a tool for accessing insurance
industry
Political factors affecting insurance industry
Insurance business in rural/ social sector
Capital requirement
Renewal of registration
Investment of funds outside India
Power to investigation or inspection
Tax policy and insurance sector
Economical factors affecting insurance industry
Adequacy of capital
Increased economical activity
Interest rates
Inflation rate
Market related factors
Customer satisfaction
11. Socio-Cultural factors affecting insurance industry
Population
Life style
Educational level
Level of earning
Societal benefits
Technological factors affecting insurance industry
Maintaining the database
E-business insurance in India
12. SWOT ANALYSIS (ACC. TO INSURANCE IN
INDIA)
Strengths
A large number of products
Geographical shared
Huge funding
Social obligations
Weaknesses
Poor customer services
Inadequate responsiveness
Lesser technical knowledge
Social awareness
13. CONTINUED…
Opportunities
Subsequent potential for growth with existing
products
Formation with joint ventures
Exploring untapped areas
Threats
Targets profitable segments by new enters
Better CRM by private corporate bodies
Surplus staff dealing
14. CHANGING W-S AND T- O- AS FEW
Encouragements for foreign investment
Use of technology i.e. E-insurance
Better claims settlement
better HR practices
Rigidities in pricing system
15. EMERGING CHARACTER OF INDIAN
INSURANCE – A GLANCE AT FUTURE
Several new players
Radical restricting of present public sectors
Closely regulated but not controlled
Competition based running
Usages of technology
16. CAREER IN INSURANCE(1.5% OF MBA’S OPTED
INSURANCE AS A CAREER -2013)
Traditional courses Modern courses
MBA(finance)
MBA(banking and
insurance)
MBA(insurance)
MBA(acturial science)-
NM-Mumbai
PGDM(life,/gen ins.)
BA(insurance)
17. REFERENCES
insurance in India-sage publication
Insurance management- palande
Life insurance-IC-33
Licindia.com
Icfai jounals