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1912 - The Indian Life Assurance Companies Act enacted the 1st Law to
Regulate the Life Insurance Business.
1938: Earlier legislation consolidated & amended the Insurance Act with the
objective of protecting the interests of the insuring public.
1956: 245 Indian & foreign insurers & provident societies are taken over
by the central government & nationalized.
LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital
contribution of Rs. 5 crore from the Government of India.
Life insurance
Non - Life Insurance
(general insurance)
- Children’s education
- Marriage expenditure
- Retirement fund
- Tax relief
Provides
- PEACE OF MIND
What is Premium
What are the Products
• Premium is the Price the Policy holder pays for the Benefit
that the Life Insurance product offers
There are two parts of the premium
Risk part
Savings part
Investments :
• GIC and its subsidiaries are not to hold more than 5% in any company.
Customer Service:
AVIVA
Prudential PLC
Aviva Life Insurance
•Aviva is the fifth-largest insurance group of the world & the biggest in the
UK.
• They are among the leading providers of life & pensions products in
Europe.
•Aviva has a 35 million-customer base worldwide and more than £332 billion
of assets under management.
•The mission of Aviva is: “to provide prosperity and peace of mind for our
customers”.
AVIVA INDIA
•Aviva was the first foreign insurance company in India to set up its
representative office in 1995.
•Aviva products are available in 392 towns & cities across India.
• AIG companies are the largest underwriters.AIG also has one of the largest
U.S. retirement savings.
•Tata AIG General Insurance company is a joint venture between the Tata
Group & American International Group, Inc
•Innovative Offers,
• Customer-Centric Products,
• Increasing Awareness Levels of
Consumers
• Enhanced Service Standards,
• Reaching out to the customer
through a number of distribution and
communications channels
• Providing advice to the customer
• Prudential PLC is an international financial services company.
• It is Asia’s leading European life insurer with life and fund management
operations in 12 countries serving some seven million customers.
(Source: www.PrudentialPLC.com)
ICICI PRUDENTIAL
• ICICI Prudential was amongst the first private sector insurance companies to
begin operations in December 2000.
• For the past four years, ICICI Prudential has retained its position as the No. 1
private life insurer in the country.
Reasons for Growth
Lucrative offers
High standard service
Customer-centric products
Good communication
techniques
Use of customer feedback
in improvement of offers.
LIFE INSURANCE CORPORATION
FORMATION:
Insurance corporation LIC was formed in September 1956 by an act of
parliament
LIC was formed with the capital contribution of 5 crores from the govt. of
India and has the sole mandate of conducting life insurance business in India.
Before the formation of LIC there where 245 Indian and foreign insurers in
India.
OBJECTIVES:
To maximize mobilization of peoples savings by making insurance linked
saving adequately attractive.
To spread life insurance much more widely and in particularly in rural area,
providing them with insurance at reasonable price and adequate finance
cover.
GROWTH:
LIC has come a long way since its nationalization in 1956 over 40 years
later in 1997
LIC had grown from Rs. 3.78 billion of new business in 1957 to Rs 555.5
billion
In 1997, LIC had spread to the farthest corners of the country with an
extensive network of over 8 lakh agents, 2048 branches(1370cities), 100
Divisional office, 7 Zonal offices and 1 Central office.
The IT initiative
The company, has invested over Rs. 400 crore in technology up gradation.
LIC now plans to increase the MAN to 33 more Cities by the end of the year
so that they have 4 I cities on the WAN. That will make it the biggest
network in the whole country, including that of the railways
THE CUSTOMER FOCUS INITIATIVE
Launching schemes for the rural areas designed to meet their requirement.
Derive 60% of its new business from rural areas
The profits of property and casualty insurance industry actually rose by $3.2
billion, or 5.5 %, to $30.6 billion during the first half of 2007.
North America was the most important region with premium income of
$1,217 billion in 2006.
Followed by the EU (at $1,198 billion) & Japan (at $492 billion.)
The United States & Japan alone accounted for a half of world insurance
premiums. (source: report by By Dr. Robe P. Hartwig, CPCU President.Insurance
Information Institute)
Contd……..
Emerging markets accounted for over 85% of the world’s population but
generated only 10% of premium.
The ISO results indicate a growth rate in net written premiums of just 0.1 %
during the first half of 2007, down substantially from the 2.7 % increase
during calendar year 2006.
Because both by law and by the nature of their business, insurers generally
limit themselves to the low-risk end of the investing universe.
The loss ratios for the credit insurance products of these companies are
likely to rise due to increased delinquencies and defaults.
Contd…..
At least half of these companies are parts of larger financial services
groups, so that the experience of this line of business is, for them, a small
part of their overall operations.
As such, it is much too early to estimate the dimensions of the claims
experience that may emerge from the recent credit market developments.
Of course some companies will be affected more than others, and the depth
and length of the credit market “challenges” might be more adverse than
many experts currently foresee .
But for now, these developments do not appear poised to adversely affect
the insurance industry’s ability to pay its claims and continue to have
financially successful operations.
(source: report by By Dr. Robert P. Hartwig, CPCU
President Insurance Information Institute)
Life insurance industry grows 49% New Delhi June 14, 2007
Life Insurance Corporation, ICICI Prudential and SBI Life & 16 other players
Country’s largest life insurer – LIC saw new premiums grow 57 % to Rs 2,134
crore in April by selling 15,89,684 policies against Rs 1,355 crore last year. It had
a market share of 71.56 % in April.
life insurers - Bajaj Allianz, ING Vysya Life & Reliance Life saw a decline in
premium collections.
The 15 private players together saw their business grow 32 % to Rs 848 crore
with a market share of 28.44 %.
Insurers Premium[Rs.Cr.]
New India - With 8 % growth in premium collection at Rs 651 crore, retained its
number one slot by cornering 20.72 % of market share.
United India - 3 % growth in business at Rs 407 crore & 12.97 % of the market.
“Indian Insurance Industry: New Avenues for Growth 2012”,
Total value of the Indian insurance market (2004-05) is at Rs. 450 billion
(US$10 billion).
The funds available with the state-owned Life Insurance Corporation (LIC) for
investments are 8% of GDP.
The year 1999 saw a revolution in the Indian insurance sector------the ending of
government monopoly -----the passage of the Insurance Regulatory and
Development Authority (IRDA) Bill
“A foreign partner can hold 26% equity in an insurance company, but there was a
proposal to increase this limit to 49%.
Foreign investments of Rs. 8.7 billion have poured into the Indian market & 21
private companies have been granted licenses.
LIC PRIVATE PLAYERS
Growth – 21.87% Growth – 129%
Earned – Rs.197.86 billion[04-05] Earned – Rs.55.57 billion[04-05]
Against Rs.24.29 billion [03-04]
Sold – 2.4 billion policies
Market share – Market share –
87.04% 78.07% 75% 13% 22% 24%
Source: www.rncos.com
India's insurance sector to see 500 per cent growth by 2010: Study
India's insurance sector - 500 % growth over the next three years -
60 billion-dollar industry by 2010
India's more than one billion people are uninsured, the study by the
Associated Chambers of Commerce and Industry (Assocham) said.
'A large part of rural India is still untapped due to poor distribution, large
distances & high costs relative to returns,‘ said Assocham president Anil K
Agarwal
He said the study had revealed that rural & semi-urban India would
contribute 35 billion dollars to the Indian insurance industry by 2010.
The study added that the urban sector insurance was estimated to reach 25
billion dollars by 2010, life insurance 15 billion and non- life insurance 10
billion dollars.