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Introduction:
The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General Insurance Business (Nationalisation) Act, 1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related Acts. With such a large population and the untapped market area of this population Insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20 per cent annually. Together with banking services, it adds about 7 per cent to the country s GDP .In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without Life insurance cover and the Health insurance. This is an indicator that growth potential for the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation
Malhotra Committee was constituted by the government in 1993 to examine the various aspects of the industry. The key element of the reform process was Participation of overseas insurance companies with 26% capital. Creating a more efficient and competitive financial system suitable for the requirements of the economy was the main idea behind this reform.
Since then the insurance industry has gone through many sea changes .The competition LIC started facing from these companies were threatening to the existence of LIC .since the liberalization of the industry the insurance industry has never looked back and today stand as the one of the most competitive and exploring industry in India. The entry of the private players and the increased use of the new distribution are in the limelight today. The use of new distribution techniques and the IT tools has increased the scope of the industry in the longer run.
Meaning of Insurance:
Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premium, to pay the other party called insured a fixed amount of money on the happening of certain event. Insurance indemnifies assets and income. Every asset (living and non-living) has a value and it generates income to its owner. The income has been created through the expenditure of effort, time and money. Every asset has expected lifetime during which it may depreciate and at the end of life period it may not be useful, till then it is expected to function. Sometimes it may cease to exist or may not be able to function partially or fully before the expected life period due to accidental occurrences like burglary, collisions, earthquakes, fire, flood, theft, etc. These types of possible occurrences are risks Future is uncertain; nobody knows what is going to happen? It may or may not? Insurance is the concept of risk management the need to manage uncertainty on account of above stated risks.
Insurance is a way of financing these risks either fully or partially. Insurance industry has both economic and social purpose and relevance Insurance business in India can be broadly divided into two categories such as Life Insurance and General Insurance of Non-life insurance.
Life Insurance was the first to be nationalized in 1956. Life Insurance Corporation of India was formed by consolidating the operations of various insurance companies. General Insurance followed suit and was nationalized in 1973. General Insurance Corporation of India was set up as the controlling body with New India, United India, National and Oriental as its subsidiaries. The process of opening up the insurance sector was initiated against the background of Economic Reform process which commenced from 1991.
For this purpose Malhotra Committee was formed during this year who submitted their report in 1994 and Insurance Regulatory Development Act (IRDA) was passed in 1999. Resultantly Indian Insurance was opened for private companies and Private Insurance Company effectively started operations from 2001.
Characteristics of Insurance:
y Sharing of risks
y Cooperative device
y Evaluation of risk
COUNTRY Indonesia Philippines India Thailand Malaysia Hong Kong South Korea Taiwan Singapore Japan
NO. OF POLICIES PER 100 PERSONS 2.0 5.6 12.4 14.7 35.5 69.4 70.5 75.2 112.6 198.
experience the kind of ups and downs that the non-bank financial sector has experienced in the recent past. They had to rethink about these guidelines if India s strong banks and financial institutions have to enter the new business. The insurance employees union is offering stiff resistance to any private entry. Their objections are:
(b) That there would be massive retrenchment and job losses due to computerization and modernization; and
(c) That private and foreign firms would indulge in reckless profiteering and skim the urban cream market, and ignore the rural areas. But all these fears are unfounded. The real reason behind the protests is that the dismantling of government monopoly would provide a benchmark to evaluate the government s insurance services.
1912 - The Indian Life Assurance Companies Act 1912 (First statutory measure to regulate Life Insurance business)
1938 The Act 1928 was consolidated and amended by the Insurance Act with effective control over the activities of insurers
1950 The Act was amended resulting in far reaching changes in the insurance sector, including, a statutory requirement of equity capital for companies carrying on life insurance business, ceiling on share holdings in such companies, strict control on investments, submission of periodical returns relating to investments and such other information to the controller.
1956 154 Indian insurers, 16 foreign insurers and 75 provident societies were carrying on life insurance business in India mostly concentrated in Urban Areas. 1956 January 19, the management of life insurance business of 245 Indian and Foreign insurers and provident fund societies, then operating in India, was taken over by the Central Government. By an Act of Parliament, viz., LIC Act 1956, with a capital contribution of Rs.50 million, Life Insurance Corporation (LIC) was formed in September 1956.
1971 Management of Non-Life insurers was taken over by the Central Government as a prelude to nationalization
1972 General insurance was urban-centric, catering mainly to the needs of organized trade and Industry. 107 insurers including branches of foreign companies operating in the country were amalgamated and grouped into four companies, viz., The National Insurance Company Ltd., The Oriental Insurance Company Ltd., The New India Assurance Company Ltd., and The United India Insurance Company Ltd. 1973 Watershed in the history of General Insurance Business in India. The General Insurance Business was nationalized with effect from January 1, 1973 by the General Insurance Business (Nationalisation) Act, 1972.
1993 First Step to Liberalisation. In April 1993 Malhotra Committee formed to recommend measures to deregulate Indian Insurance Sector, and submitted its report in January 1994.
both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies.
In 1938, with a view to protecting the interest of the Insurance public, the earlier legislation was consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for effective control over the activities of insurers. The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a large number of insurance companies and the level of competition was high. There were also allegations of unfair trade practices. The Government of India, therefore, decided to nationalize insurance business. An Ordinance was issued on 19th January, 1956 nationalizing the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The history of general insurance dates back to the Industrial Revolution in the west and the consequent growth of sea-faring trade and commerce in the 17th century. It came to India as a legacy of British occupation. In 1907, the Indian Mercantile Insurance Ltd was set up. This was the first company to transact all classes of general insurance business. In 1957 saw the formation of the General Insurance Council, a wing of the Insurance Association of India. The General Insurance Council framed a code of conduct for ensuring fair conduct and sound business practices. In 1968, the Insurance Act was amended to regulate investments and set minimum solvency margins. The Tariff Advisory Committee was also set up then. In 1972 with the passing of the General Insurance Business (Nationalization) Act, general insurance business was nationalized with effect from 1st January, 1973. The General Insurance Corporation of India was
This millennium has seen insurance come a full circle in a journey extending to nearly 200 years. The process of re-opening of the sector had begun in the early 1990s and the last decade and more has seen it been opened up substantially. In 1993, the Government set up a committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance sector. The objective was to complement the reforms initiated in the financial sector. The committee submitted its report in 1994 wherein, among other things, it recommended that the private sector be permitted to enter the insurance industry. They stated that foreign companies be allowed to enter by floating Indian companies, preferably a joint venture with Indian partners. Following the recommendations of the Malhotra Committee report, in 1999, the Insurance Regulatory and Development Authority (IRDA) was constituted as an autonomous body to regulate and develop the insurance industry. The IRDA was incorporated as a statutory body in April, 2000. The key objectives of the IRDA include promotion of competition so as to enhance customer satisfaction through increased consumer choice and lower premiums, while ensuring the financial security of the insurance market. The IRDA opened up the market in August 2000 with the invitation for application for registrations. Foreign companies were allowed ownership of up to 26%. The Authority has the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from 2000
onwards framed various regulations ranging from registration of companies for carrying on insurance business to protection of policyholders interests.
In December, 2000, the subsidiaries of the General Insurance Corporation of India were restructured as independent companies and at the same time GIC was converted into a national re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July, 2002.Today there are 14 general insurance companies including the ECGC and Agriculture Insurance Corporation of India and 14 life insurance companies operating in the country. The insurance sector is a one and is growing at a speedy rate of 15-20%. Together with banking services, insurance services add about 7% to the country s GDP. A well-developed and evolved insurance sector is a boon for economic development as it provides long- term funds for infrastructure development at the same time strengthening the risk taking ability of the country.
Principles of Insurance:
Principle of Utmost good faith. Principle of Indemnity. Principle of Causa Proxima. Principle of Insurable Interest. Doctrine of Subrogation.
1990s saw the emergence of liberalisation. Liberalisation meant lifting government controls, permits, licenses and allowing competition to play its role in the economy. With respect to the insurance business, liberalisation means allowing private enterprises, including MNCs, to operate in the area that was hitherto monopolised by the Government of India.
As a first step towards allowing private sector entry, Government of India appointed a committee under the chairmanship of Sri. Malhotra. The Committee submitted its report in 1994, recommended, among after things, that the insurance sector in India be thrown open to private sector. Government accepted the recommendations and allowed private players to offer insurance cover to Indian citizens.
To avoid monopolized (by the State run LIC and GICs) market.
Create awareness in urban areas about the needs and benefits of insurance.
To reduce the yawning gap between the needs of customers and products being offered by the state owned companies.
Structure Government stake in the insurance Companies to be brought down to 50 per cent.
Government should take over the holdings of GIC and its subsidiaries, to act these as independent companies.
All insurance companies should be given greater freedom to operate. No special dimension is given to government companies.
Increase of capital base of LIC and GIC up to Rs. 200 crores, half retained by the government and the rest sold to the public at large with suitable reservations for its employees.
Competition: Private Companies are allowed to enter insurance industry with a minimum paid up capital of Rs. 1billion.
No company should deal in both Life and General Insurance through a single entity.
Foreign insurance may be allowed to enter the industry by floating an Indian company as joint venture with Indian partner.
Postal Life Insurance should be allowed to operate in the rural market. Only and one State Level Life Insurance Company should be allowed to operate in each State.
Regulatory Body: Establishment of a strong and effective insurance regulatory body in the form of a statutory autonomous board on the lines of SEBI.
Mandatory Investments of LIC Life Fund in government securities to be reduced from 75 per cent to 50 per cent.
GIC and its subsidiaries are not to hold more than five per cent in any company (the current holdings to be brought down to this level over a period of time
Customer Service: LIC should pay interest on delays in payments beyond 30 days.
private life insurers, 9 private non-life insurers and 6 public sector companies. With many more joint ventures, the insurance industry in India today stands at a crossroads as competition intensifies and companies prepare survival strategies in a de terrified scenario. There is pressure from both within the country and outside on the Government to increase the foreign direct investment (FDI) limit from the current 26% to 49%, which would help JV partners to bring in funds for expansion. Less than 10 % of Indians above the age of 60 receive pensions. The health insurance sector has tremendous growth potential, and as it matures and new players enter, product innovation and enhancement will increase.
State continues to dominate: There may be room for many more players in a large underinsured market like India with a population of over one billion. But the reality is that the intense competition in the last five years has made it difficult for new entrants to keep pace with the leaders and thereby failing to make any impact in the market.
Also as the private sector controls over 26.18% of the life insurance market and over 26.53% of the non-life market, the public sector companies still call the shots. The country s largest life insurer, Life Insurance Corporation of India (LIC), had a share of 74.82% in new business premium income. Similarly, the four public-sector non-life insurers New India Assurance, National Insurance, had a combined market share of
73.47% .ICICI Prudential Life Insurance Company continues to lead the private sector with a 7.26% market share in terms of fresh premium, whereas ICICI Lombard General Insurance Company is the leader among the private non-life players with a 8.11% market share. ICICI Lombard has focused on growing the market for general insurance products and increasing penetration within existing customers through product innovation and distribution.
Reaching Out To Customers: No doubt, the customer profile in the insurance industry is changing with the introduction of large number of divergent intermediaries such as brokers, and corporate agents. The industry now deals with customers who know what they want and when, and are more demanding in terms of better service and speedier responses. With the industry all set to move to a de terrified regime by 2007, there will be considerable improvement in customer service levels, product innovation and newer standards of underwriting.
Intense Competition: In a de terrified environment, competition will manifest itself in prices, products, underwriting criteria, innovative sales methods and creditworthiness. Insurance companies with each other to capture market share through better pricing and client segmentation. The battle has so far been fought in the big urban cities, but in the next few years, increased competition will drive insurers to rural and semi-urban markets.
Global Standards: While the world is eyeing India for growth and expansion, Indian companies are becoming increasingly world class. Take the case of LIC, which has set its sight on becoming a major global player following an Rs280crore investment from the Indian government. The company now operates in Mauritius, Fiji, UK, Sri Lanka, and Nepal and will soon start operations in Saudi Arabia. It also plans to venture into the African and Asia-Pacific regions. With life insurance premiums being just 2.5% of GDP and general insurance premiums being 0.65% of GDP, the opportunities in the Indian market place is immense. The next five years will be challenging but those that can build scale and market share will survive and prosper.
Types of Insurance y Life Insurance y General Insurance y Fire Insurance y Marine Insurance
Life Insurance:
Life insurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a designated beneficiary a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount at regular intervals or in lump sums.
As the name suggests, a Whole Life Policy is an insurance cover against death, irrespective of when it happens.
Under this plan, the policyholder pays regular premiums until his death, following which the money is handed over to his family.
This policy, however, fails to address the additional needs of the insured during his post-retirement years. It doesn't take into account a person's increasing needs either.
Endowment Policy:
Combining risk cover with financial savings, endowment policies is the most popular policies in the world of life insurance.
y
In an Endowment Policy, the sum assured is payable even if the insured survives the policy term.
If the insured dies during the tenure of the policy, the insurance firm has to pay the sum assured just as any other pure risk cover.
A pure endowment policy is also a form of financial saving, whereby if the person covered remains alive beyond the tenure of the policy, he gets back the sum assured with some other investment benefits.
These policies are structured to provide sums required as anticipated expenses (marriage, education, etc) over a stipulated period of time. With inflation becoming a big issue, companies have realized that sometimes the money value of the policy is eroded. That is why with-profit policies are also being introduced to offset some of the losses incurred on account of inflation.
A portion of the sum assured is payable at regular intervals. On survival the remainder of the sum assured is payable.
y y
In case of death, the full sum assured is payable to the insured. The premium is payable for a particular period of time.
Annuities and Pensions: In an annuity, the insurer agrees to pay the insured a stipulated sum of money periodically. The purpose of an annuity is to protect against risk as well as provide money in the form of pension at regular intervals. Over the years, insurers have added various features to basic insurance policies in order to address specific needs of a cross section of people.
General Insurance
Insurance other than Life Insurance falls under the category of General Insurance. General Insurance comprises of insurance of property against fire, burglary etc, personal insurance such as Accident and Health Insurance, and liability insurance which covers legal liabilities. There are also other covers such as Errors and Omissions insurance for professionals, credit insurance etc. The non-life companies also offer policies covering machinery against breakdown, there are policies that cover the hull of ships and so on. A Marine Cargo policy covers goods in transit including by sea, air and road. Further, insurance of motor vehicles against damages and theft forms a major chunk of non-life insurance business. In respect of insurance of property, it is important that the cover is taken for the actual value of the property to avoid being imposed a penalty should there be a claim. Where a property is undervalued for the purposes of insurance, the insured will have to bear a ratable proportion of the loss. For instance if the value of a property is Rs.150 and it is insured for Rs.100/-, in the event of a loss to the extent of say Rs.100/-, the maximum claim amount payable would be Rs.50. Personal insurance covers include policies for Accident, Health etc. Products offering Personal Accident cover are benefit policies. Health insurance covers offered by non-life insurers are mainly hospitalization covers either on reimbursement or cashless basis. The cashless service is offered through Third Party Administrators who have arrangements with various service providers.
Accident and health insurance policies are available for individuals as well as groups. A group could be a group of employees of an organization or holders of credit cards or deposit holders in a bank etc. Normally when a group is covered, insurers offer group discounts.
Liability insurance covers such as Motor Third Party Liability Insurance, Workmen s Compensation Policy etc offer cover against legal liabilities that may arise under the respective statutes Motor Vehicles Act, The Workmen s
Compensation Act etc. Some of the covers such as the foregoing (Motor Third Party and Workmen s Compensation policy ) are compulsory by statute. Liability Insurance not compulsory by statute is also gaining popularity these days. Many industries insure against Public liability. There are liability covers available for Products as well.
There are general insurance products that are in the nature of package policies offering a combination of the covers mentioned above. For instance, there are package policies available for householders, shop keepers and also for professionals such as doctors, chartered accountants etc. Apart from offering standard covers, insurers also offer customized or tailor-made ones.
Suitable general Insurance covers are necessary for every family. It is important to protect one s property, which one might have acquired from one s hard earned income. A loss or damage to one s property can leave one shattered. Losses created by catastrophes such as the tsunami, earthquakes, cyclones etc have left many homeless and penniless. Such losses can be devastating but insurance could help mitigate them. Property can be covered, so also the people against Personal Accident. A Health Insurance policy can provide financial relief to a person undergoing medical treatment whether due to a disease or an injury. Industries also need to protect themselves by obtaining insurance covers to protect their building, machinery, stocks etc. They need to cover their liabilities as well. Financiers insist on insurance. So, most industries or businesses that are financed by banks and other institutions do obtain covers. But are they obtaining the right covers? And are they insuring adequately are questions that need to be given some thought. Also organizations or industries that are self-financed should ensure that they are protected by insurance.
Most general insurance covers are annual contracts. However, there are few products that are long-term. It is important for proposers to read and understand the terms and conditions of a policy before they enter into an insurance contract. The proposal form needs to be filled in completely and correctly by a proposer to ensure that the cover is adequate and the right one
Fire Insurance:
A fire insurance policy involves an insurance company agreeing to pay a certain amount equivalent to the estimated loss caused by fire to the insured, within the time specified in the contract. The indemnity is subject to change depending upon the policy. One should confirm with the insurer about the types of risks covered, since one cannot insure the property against all types of risks of fire.
y Comprehensive policy: This all-in-one policy indemnifies for loss arising out of fire, burglary, theft and third party risks. The policyholder may also get paid for the loss of profits incurred due to fire till the time the business remains shut.
y Valued policy: This policy is a departure from the standard contract of indemnity. The amount of indemnity is fixed and the actual loss is not taken into consideration.
y Floating policy: This policy is subject to the average clause . The extent of coverage expands to different properties belonging to the policyholder under the same contract and one premium. The policy may also provide protection to goods kept at two different stores.
y Replacement or Re-instatement policy: This policy is subject to the re-instatement clause, which requires the insurance company to pay for replacing the damaged property. So, instead of giving out cash, the insurer can re-instate the property as an alternative option.
Marine Insurance:
Meaning: Business today knows no boundaries. We have an access to products and services across borders as countries continue to globalise. However the farther our goods travel the more risk they are exposed to. That s why Bajaj Allianz brings to you the marine cargo insurance cover, which compensates losses of goods in transit.
Need for Marine Insurance: The cost of marine insurance is quite small compared with the cost of the goods shipped and the freight charges involved. Therefore, the benefit of the marine insurance, in terms of financial reimbursement if disaster strikes, is usually well worth the cost. Not much help can be expected from the shipping company for the exporter, if the goods are damaged or lost, even while in its care. Various statutes, plus the printed clauses in ocean bills of lading - the contract between the shipper and the carrier, limit the liability of the shipping company for such losses. In order to recover losses from the carrier, the exporter must be able to prove want of due diligence, in other words, the shipping company was negligent. It is difficult for an exporter to prove at what point damage or loss occurred. However, a marine insurance policy is often arranged on a warehouse-towarehouse basis. In other words, the risk of financial loss from damage or loss occurring during inland transit in the exporting country and abroad as well as during ocean shipment. Such a policy relieves the exporter of the burden of proving when or where any loss actually occurred. If, someone else's goods are damaged or destroyed during the voyage and in order to save the ship, then the
exporter may be called upon to pay part of the cost. This is known as general average. Here, the point that is being made is that the exporter's goods may be held in the foreign port until such a claim is settled. By having marine insurance, including general average coverage, the exporter avoids the risk of such a delay. Scope of Cover: It covers transit of goods: 1. By Sea. (All ocean voyages and inland water ways.) 2. Send by post or parcels 3. Bay rail/road/Air. Basis of sum Insured: Marine Insurance policies are issued on agreed value bases and should be based on invoice and covering incidental expenses. What are the types of Coverage offered? The following are the type of covers available: All Overseas Transits are subjected to Institute Cargo Clauses, given by Lloyds Underwriter and Technical Committee, London.
Objectives of Underwriting:
A) Product Equitable to Customer The underwriter should fairly assess the risk in a proposal and fix the premium justifiable to the consumer.
B) Deliverable to the Customer Consumers are the final authority for buying the products. If the marketers are not able to sell so that the product becomes undeliverable, the onus is on the underwriters to carry an introspection of the various factors that caused differences between the consumers and company s expectations.
C) Financially Feasible to the insurance Company The insurers are not in the business of charity. The underwriting benefit must be reflected by the financial statements. Although, the underwriters are not directly involved in the pricing of insurance products, yet their contribution is as vital as that of actuaries, because they operationalise the business of risk.
large cases this is simply impossible. Detail of the risk could not be confined to a proposal form since there is just too much information to condense, no matter how large the form may be. The insurance companies may take the help of brokers in these cases. The broker in these cases will be in a position to prepare the case for the underwriter. This may mean site inspections by the broker and the preparation of plans and reports on the relevant aspects of the risk. This documentation, which may be extremely extensive, is then passed to the underwriter and negotiation can commence on the terms, conditions, cover and price.
Reinsurance
Meaning The practice of insurers transferring portions of risk portfolios to other parties by some form of agreement in order to reduce the likelihood of having to pay a large obligation resulting from an insurance claim. The intent of reinsurance is for an insurance company to reduce the risks associated with underwritten policies by spreading risks across alternative institutions. Also known as "insurance for insurers" or "stop-loss insurance" Objectives of Reinsurance 1) To limit liability on specific risks 2) To stabilise loss experience 3) To protect against catastrophe 4) To increase capacity. Types of Reinsurance Treaty reinsurance This method is defined to cover an entire category of risk or line of business in advance. It is obligatory and binding in nature for both the reinsured and reinsurers. So as long as a risk meets all the conditions as given in the reinsurance contract, acceptance of that risk by the insurer is automatic. Reinsurance by this method creates capacity for insurers.
Capacity + Coverage of all perils with adequate limits + confidence on security of reinsurers + continuity of reinsurance after a loss. Facultative reinsurance This is for the reinsurance of current single risk and options are open for both the reinsured and reinsurers. In a facultative contract relationship, the reinsurer retains the faculty or power to either accept or reject each individual risk offered to it by the insurer. No matter what kind of reinsurance contract it is, the risks between the insurer and the reinsurer can be shared on a proportional or (also known as excess of loss) basis. In a proportional agreement the reinsurer pays for losses in the same proportion as the amount of premium it receives. Such contracts can be on a quota or surplus share basis. In a non-proportional agreement, an attachment point is fixed. When a claim arises, the reinsurer pays nothing unless the claim amount is greater than the attachment point. Such a contract is written per risk, per occurrence or as an aggregate loss. Reinsurers always try to attach a global spread of risks. Hence there are tie-ups with global reinsurers. When reinsurers are in the global market they are not excessively affected by local market bad losses and are capable of meeting liabilities.
Advantages of Reinsurance In a highly volatile market it may sometimes be hard to correctly price new products because of inadequate information. Incorrect pricing could lead to unanticipated claims that the insurance company cannot meet. If there were not reinsurance the insurance company would have to settle these claims out of its own capital therefore reinsurance helps to protect the solvency of the insurance company. Reinsurance enables the insurer to take up large claims and expand capacity In India; regulations restrict the insurer from risking more than 10 per cent of its surplus on any one risk. Reinsurance provides the insurer with ability to cover large, individual risks and guarantees timely settlement of the claim. An insurance company can benefit immensely by tying up with a successful reinsurer. The reinsurer can provide important underwriting training and skill development and share expertise gained from other countries. Since the success of the reinsurer is linked to the profits of the insurance company, it is in the best interest of the reinsurer to measure that the company is sound. The reinsurer can contribute to designing the product, pricing and marketing new products. It can also offer back office support such as faster claims processing and automation of operations.
The questions and its answers which are submitted below, is being asked to the agent of Life Insurance Company and few other questions are asked to around 10 people who are directly or indirectly affiliated with insurance business. Questioners: 1) Do you have any past experience in Insurance Business?
Report
Yes 15%
No 40%
Figure: 1.1 As per the diagram, The Insurance business in India is flourishing these days, at very fast pace around 15% of people working in insurance are skilled enough to tackle the issues; whereas there is a new age group who has joined the but lacks experience, the not interested are those who lack education.
2) From how many years you are being employed in this organization?
Data
Ambience
Figure 1.3
Sales
Figure 1.4 5) What do you look for a new company when you join?
New Prospect
Figure 1.5
Problems
Figure 1.6 7) Is your organization flexible, with respect to your family responsibilities?
Firm's Approach
Figure 1.7
Satisfaction
Figure 1.8 9) Are you satisfied with organizations Culture and Politics?
Satisfaction Level
Agree Disagree
Figure 1.9
Stress Levels
Figure 1.10 11) How much are you satisfied with your job?
Satisfied Dissatisfied
Figure 1.11
12) What according to you are the factors which motivate employ to retain in life insurance companies?
Monetary Factors
Figure 1.12.1
Non-Monetary Factors
Figure 1.12.2
Conclusion:
Biblography