KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION

2009Big changes have occurred over the last few years, during which the sector
was opened to private participation, along with foreign direct investment.
It also has one of the lowest penetration rates for property and casualty
insurance in Asia in terms of premium as a percentage of GDP.
India’s general insurance market witnessed a variety of changes as
deregulation continued at a hectic pace.

Rate reductions in the recently de-tariff corporate portfolio(fire &

engineering) has impacted the premium growth, but this is also leading to the

greater sales of existing and new products.

The number of private insurers is growing and they continue to capture

market share at the expense of public enterprises on a mix of aggressive

distribution and service.

With the increasing number of insurers in the private sector. The industry
forecasts for a continuous growth and rise domestic demand.
Majority of the revenue is earned by the motor vehicle segment of the general
insurance
SUGGESTIONS
•
Create awareness among the people of the various insurance products available
A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY- AUTO INSURANCE
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KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION

2009
in the market
•
Capture the untapped population residing in the rural and sub urban parts of the
country
•
Spread the message of benefits of insurance through mass campaign
•
The industry needsinnovative low cost distribution and servicing
Strategies
•
The company should hire more agents with more knowledge about the
products with proper training
•

The company can have an effective Bancassurance /NBFC tie ups sothat the

entire Banking infrastructure is utilized for distribution of insurance

products
•
The insurance policies should be simple & less legalistic, with reasonable price,
hassle free policy issuance and claim process more package policies
•
The companies should also introduce short term policies
CONCLUSION

Considering the high level of underwriting losses, going forward adjustment in

premium rates would occur when the industry matures and consolidation takes place.

The ability to price effectively willalso imply an increased focus on risk management
A STUDY ON INDIAN GENERAL INSURANCE INDUSTRY- AUTO INSURANCE
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KRUPANIDHI INSTITUTE OF MANAGEMENT EDUCATION

2009
by the insurance companies.

The continual entry of new private players coupled with the intense competition

sparkedoff by the detariffication of general insurance sector hasalso resulted in

strengtheningthe bargaining power of the customer and development of customer

centric insuranceproducts.
On the whole, while short term scenario for the general insurance sectorappears to be
challenging the long term prospects definitely present ample opportunities for growth.

While the government’s plan to raise FDI cap in insurance companies from 26 to 49 per

cent will lead to more capital flowing in, the untapped market potential holds the

opportunity
to grow faster.
BIBLIOGRAPHY
“Indian Insurance: The Way Forward”- G Srinivasan,
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