RESEARCH PROJECT REPORT

Submitted in partial fulfillment of master of business administration

Session 2019-2021

“To Study the Challenges, Opportunities & Trends Prevailing in

Insurance Industry in India”

Submitted By:

[Mansi Vishwakarma]

[1903480700029]

Internal Guide

[Mr. Anurag Pandey]

[Faculty-Master of Business Administration]

PSIT COLLEGE OF ENGINEERING, KANPUR

Affiliated to Dr. A.P.J. AKTU

 DECLARATION

I hereby declare that this submission is my own work. It contains no material

previously published or written by another person, nor has this material to a

substantial extent been accepted for the award of any other degree or diploma of the

university or other institute of higher learning.

Mansi Vishwakarma
 ACKNOWLEDGEMENT

Research Project Report is the one of the important part of MBA program, which has

helped me to gain a lot of experience, which will be beneficial in my succeeding

career.

For this with an ineffable sense of gratitude I take this opportunity to express my deep

sense of indebtedness and gratitude to Dr. Ajit kumar N Shukla, Director PSIT

College Of Engineering, Kanpur and Dr. Harit Kumar Yadav, Head of Business

Administration Department, for their encouragement, support and guidance in

carrying out the project.

I am very much thankful to, my Project Guide Mr. Anurag Pandey, Faculty – MBA

Department for his interest, constructive criticism, persistent encouragement and

untiring guidance throughout the development of the project. It has been my great

privilege to work under his inspiring guidance.

I am also thankful to my parents and my friends for their indelible co-operation for

achieving the goals of this study.

 EXECUTIVE SUMMARY

The insurance sector is made up of companies that offer risk management in the

form of insurance contracts. The basic concept of insurance is that one party, the

insurer, will guarantee payment for an uncertain future event. Insurance is the

main element in the operation of national economies throughout the world today.

It protects health and assets of the people and stimulates business activities to

operate in a cost-effective manner. While India’s insurance sector has been

growing dynamically in recent years, its share in the global insurance market

remains abysmally low. The Project―“To Study the Challenges, Opportunities &

Trends Prevailing in Insurance Industry in India” is an attempt to find out the

challenges faced by Indian insurance industry, opportunities prevailing, trends

followed in current scenario and the impact of COVID-19 pandemic. The study

revealed that there are many underlying issues which affect the insurance sector in

India such as low penetration and density rates, inadequate investment in

insurance products, and the dominant position and deteriorating financial health of

public-sector players. Out of all key players LIC continues to dominate life

insurance segment in the Indian insurance industry. The study is based on

secondary data therefore I have taken help of various websites and research papers

for collecting data. This research has given great knowledge to me of Insurance

industry.
Table of Contents

CHAPTER-1 ................................................................................................................................
1.1 GENERAL INTRODUCTION ...................................................................................... 1
1.2 History ................................................................................................................................. 4
Insurance Regulatory and Development Authority ................................................................... 8
Background ............................................................................................................................ 8
Birth of IRDAI ................................................................................................................... 8
IRDAI’s Activities ................................................................................................................. 9
IRDAI’s Mission.................................................................................................................... 9
Functions and Duties of IRDAI ............................................................................................. 9
Market Size .............................................................................................................................. 11
Investments and Recent Developments ................................................................................... 12
Government Initiatives......................................................................................................... 13
Road Ahead.......................................................................................................................... 14
CHAPTER-2 ............................................................................................................................ 15
INDUSTRY PROFILE ............................................................................................................ 15
1. Life Insurance Corporation of India................................................................................. 16
2. ICICI Prudential Life Insurance....................................................................................... 16
3. Bajaj Allianz Life Insurance Company............................................................................ 17
4. SBI Life Insurance Company........................................................................................... 18
5. Max Life Insurance Company ......................................................................................... 19
6. HDFC Life Insurance Company ...................................................................................... 19
7. Reliance Nippon Life Insurance Company ...................................................................... 20
8. Bharti AXA Life Insurance Company ............................................................................. 20
9. Tata AIA Life Insurance Company.................................................................................. 21
10. Oriental Insurance Company Ltd. .................................................................................. 21
CHAPTER-3 ............................................................................................................................ 22
IMPACT OF COVID-19 PANDEMIC ON INSURANCE INDUSTRY ................................ 23
Cover for COVID-19 pandemic: ............................................................................................. 29
Types of Insurance ................................................................................................................... 31
1. Life Insurance .................................................................................................................. 31
2. Motor Insurance ............................................................................................................... 33
3. Health Insurance .............................................................................................................. 36
 4. Travel Insurance............................................................................................................... 38
5. Property Insurance ........................................................................................................... 39
6. Mobile Insurance ............................................................................................................. 41
7. Cycle Insurance................................................................................................................ 42
8. Bite-Size Insurance .......................................................................................................... 43
IMPORTANT TERMINOLOGIES: ........................................................................................ 44
Increasing Penetration And Density of Insurance Over The Years ......................................... 51
Increasing Private Sector Activity In Life Insurance Segment ................................................ 53
LIC Continues To Dominate Life Insurance Segment............................................................. 54
Key Players in The Non-Life Insurance Segment ................................................................... 55
NOTABLE TRENDS .............................................................................................................. 57
STRATEGIES ......................................................................................................................... 58
Growth Drivers For Insurance In India .................................................................................... 59
Favourable Policy Measures Aid The Sector ........................................................................... 60
Rising Private Sector Investment In Insurance ........................................................................ 61
OPPORTUNITIES ................................................................................................................... 63
CHALLENGES ....................................................................................................................... 66
CHAPTER-4 ............................................................................................................................ 76
LITERATURE REVIEW ........................................................................................................ 76
CHAPTER-5 ............................................................................................................................ 81
RESEARCH METHODOLOGY............................................................................................. 81
5.1 SIP TOPIC: .................................................................................................................... 82
5.2 RESEARCH OBJECTIVE: ........................................................................................... 82
5.3 RESEARCH DESIGN: .................................................................................................. 82
CHAPTER-6 ............................................................................................................................ 83
6.1 SUMMARY OF FINDINGS ................................................................................... 84
6.2 SUGGESTIONS AND RECOMMENDATIONS ......................................................... 86
6.3 CONCLUSION .............................................................................................................. 87
6.4 LIMITATIONS ........................................................................................................ 89
BIBLIOGRAPHY .................................................................................................................... 90
Websites ................................................................................................................................... 91
Research Papers ....................................................................................................................... 92
CHAPTER-1
1.1 GENERAL INTRODUCTION

The insurance industry is critical for any country’s economic development. A well-

developed insurance sector boosts risk-taking in the economy, as it provides some

security in the event of an unforeseen, loss-causing incident. It also provides much-

needed support to family members in the case of loss of life or health. Since the assets

under management of insurance companies represent long-term capital, they also act

as a pool in which to invest in long-term projects such as infrastructure development.

The Indian Insurance Sector is basically divided into two categories – Life Insurance

and Non-life Insurance. The Non-life Insurance sector is also termed as General

Insurance. Both the Life Insurance and the Non-life Insurance is governed by

the IRDAI (Insurance Regulatory and Development Authority of India).The role of

IRDA is to thoroughly monitor the entire insurance sector in India and also act like a

custodian of all the insurance consumer rights. This is the reason all the insurers have

to abide by the rules and regulations of the IRDAI.

The Insurance sector in India consists of total 57 insurance companies. Out of which

24 companies are the life insurance providers and the remaining 33 are non-life

insurers. Out which there are seven public sector companies. Among the life insurers,

Life Insurance Corporation (LIC) is the sole public sector company. There are six

public sector insurers in the non-life insurance segment. In addition to these, there is a

sole national re-insurer, namely General Insurance Corporation of India (GIC Re).

Other stakeholders in the Indian Insurance market include agents (individual and

corporate), brokers, surveyors and third-party administrators servicing health

insurance claims. Life insurance companies offer coverage to the life of the

1
individuals, whereas the non-life insurance companies offer coverage with our day-to-

day living like travel, health insurance, our car and bikes, and home insurance. Not

only this, but the non-life insurance companies provide coverage for our industrial

equipment’s as well. Crop insurance for our farmers, gadget insurance for mobiles,

pet insurance etc. are some more insurance products being made available by the

general insurance companies in India. The life insurance companies have gained an

investment prospectus in the recent times with an idea of providing insurance along

with a growth of your savings. But, the general insurance companies remain reluctant

to offer pure risk cover to the individuals. The insurance industry in India has also

grown along with the country’s economy. Several insurance companies in the country

are expanding their operations, across both the public and private sector.

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 or uncertain

loss.

An entity which provides insurance is known as an insurer, insurance company,

insurance carrier or underwriter. A person or entity who buys insurance is known as

an insured or as a policyholder. The insurance transaction involves the insured

assuming a guaranteed and known relatively small loss in the form of payment to the

insurer in exchange for the insurer's promise to compensate the insured in the event of

a covered loss. The loss may or may not be financial, but it must be reducible to

financial terms, and usually involves something in which the insured has an insurable

interest established by ownership, possession, or pre-existing relationship.

The insured receives a contract, called the insurance policy, which details the

conditions and circumstances under which the insurer will compensate the insured.

2
The amount of money charged by the insurer to the policyholder for the coverage set

forth in the insurance policy is called the premium. If the insured experiences a loss

which is potentially covered by the insurance policy, the insured submits a claim to

the insurer for processing by a claims adjuster. The insurer may hedge its own risk by

taking out reinsurance, whereby another insurance company agrees to carry some of

the risks, especially if the primary insurer deems the risk too large for it to carry.

3
1.2 History

1818 saw the advent of life insurance business in India with the establishment of the

Oriental Life Insurance Company in Calcutta. This Company however failed in 1834.

In 1829, the Madras Equitable had begun transacting life insurance business in the

Madras Presidency. 1870 saw the enactment of the British Insurance Act and in the

last three decades of the nineteenth century, the Bombay Mutual (1871), Oriental

(1874) and Empire of India (1897) were started in the Bombay Residency. This era,

however, was dominated by foreign insurance offices which did good business in

India, namely Albert Life Assurance, Royal Insurance, Liverpool and London Globe

Insurance and the Indian offices were up for hard competition from the foreign

companies.

In 1914, the Government of India started publishing returns of Insurance Companies

in India. The Indian Life Assurance Companies Act, 1912 was the first statutory

measure to regulate life business. In 1928, the Indian Insurance Companies Act was

enacted to enable the Government to collect statistical information about 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.

4
An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance

sector and Life Insurance Corporation came into existence in the same year. The LIC

absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies—245

Indian and foreign insurers in all. The LIC had monopoly till the late 90s when the

Insurance sector was reopened to the private sector.

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. General Insurance in India has its

roots in the establishment of Triton Insurance Company Ltd., in the year 1850 in

Calcutta by the British. In 1907, the Indian Mercantile Insurance Ltd, was set up. This

was the first company to transact all classes of general insurance business.

1957 saw the formation of the General Insurance Council, a wing of the Insurance

Associaton 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 (Nationalisation) Act,

general insurance business was nationalized with effect from 1st January, 1973. 107

insurers were amalgamated and grouped into four companies, namely National

Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental

Insurance Company Ltd and the United India Insurance Company Ltd. The General

Insurance Corporation of India was incorporated as a company in 1971 and it

commence business on January 1sst 1973.

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

5
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.

6
Thus, the insurance sector was opened to private players. This allowed foreign players

to collaborate with Indian entities to enter the sector.

The number of insurance companies in India has increased quickly and continuously,

and this has led to a vibrant insurance sector- with more variety and affordability for

the consumer.

7
Insurance Regulatory and Development Authority

It regulates the Indian insurance industry to protect the interests of the policyholders

and work for the orderly growth of the industry.

Background

▪ 1991: Government of India begins the economic reforms programme and

financial sector reforms

▪ 1993: Committee on Reforms in the Insurance Sector, headed by Mr. R. N.

Malhotra, (Retired Governor, Reserve Bank of India) set up to recommend

reforms.

▪ 1994: The Malhotra Committee recommends certain reforms having studied

the sector and hearing out the stakeholders

▪ Some recommended reforms

o Private sector companies should be allowed to promote insurance

companies

o Foreign promoters should also be allowed

o Government to vest its regulatory powers on an independent regulatory

body answerable to Parliament

Birth of IRDAI

▪ Insurance Regulatory and Development Authority (IRDA) set up as

autonomous body under the IRDA Act, 1999

▪ IRDAI’s Mission: To protect the interests of policyholders, to regulate,

promote and ensure orderly growth of the insurance industry and for matters

connected therewith or incidental thereto.

8
IRDAI’s Activities

▪ Frames regulations for insurance industry in terms of Section 114A of the

Insurance Act 1938

▪ From the year 2000 has registered new insurance companies in accordance

with regulations

▪ Monitors insurance sector activities for healthy development of the industry

and protection of policyholders’ interests

IRDAI’s Mission

Insurance Regulatory and Development Authority (IRDA) Act, 1999 spells out the

Mission of IRDAI as:

“... to protect the interests of the policyholders, to regulate, promote and ensure

orderly growth of the insurance industry and for matters connected therewith or

incidental thereto......”

Functions and Duties of IRDAI

Section 14 of the IRDA Act, 1999 lays down the duties, powers and functions of

IRDA.

• Issuing, renewing, modifying, withdrawing, suspending or cancelling registrations

• Protecting policyholder interests

• Specifying qualifications, the code of conduct and training for intermediaries and

agents

• Specifying the code of conduct for surveyors and loss assessors

• Promoting efficiency in the conduct of insurance businesses

9
• Promoting and regulating professional organisations connected with the insurance

and re-insurance industry

• Levying fees and other charges

• Inspecting and investigating insurers, intermediaries and other relevant

organisations

• Regulating rates, advantages, terms and conditions which may be offered by

insurers not covered by the Tariff Advisory Committee under section 64U of the

Insurance Act, 1938 (4 of 1938)

• Specifying how books should be kept

• Regulating company investment of funds

• Regulating a margin of solvency

• Adjudicating disputes between insurers and intermediaries or insurance

intermediaries

• Supervising the Tariff Advisory Committee

• Specifying the percentage of premium income to finance schemes for promoting

and regulating professional organisations

• Specifying the percentage of life- and general-insurance business undertaken in

the rural or social sector

• Specifying the form and the manner in which books of accounts shall be

maintained, and statement of accounts shall be rendered by insurers and other

insurer intermediaries.

10
Market Size

In India, the overall market size of the insurance sector is expected to US$ 280 billion

in 2020. Government's policy of insuring the uninsured has gradually

pushed insurance penetration in the country and proliferation of insurance schemes.

Gross premium collected by life insurance companies in India increased from Rs.2.56

trillion (US$ 39.7 billion) in FY12 to Rs.7.31 trillion (US$ 94.7 billion) in FY20.

During FY12–FY20, premium from new business of life insurance companies in India

increased at a CAGR of 15% to reach Rs 2.13 trillion (US$ 37 billion) in FY20.

Overall insurance penetration (premiums as% of GDP) in India reached 3.69% in

2017 from 2.71% in 2001.

The market share of private sector companies in the non–life insurance market rose

from 15% in FY04 to 56% in FY21 (till April 2020). In life insurance segment,

private players had a market share of 31.3% in new business in FY20.

11
Investments and Recent Developments

Strong economic factors and the government pushing the right buttons with the

implementation of technology has propelled all sectors of the Indian industry on a

glorious path. Life Insurance industry has also made a significant contribution in

putting our country on this glorious growth trajectory.

Adopting life insurance for risk management and using it as a preferred tool for

achieving major life goals has made a noteworthy contribution to the growth of the

life insurance industry.

The following are some of the major investments and developments in the Indian

insurance sector.

• Enrolments under the Pradhan Mantri Suraksha Bima Yojana (PMSBY)

reached 154.7 million till December 2019 since its launch.

• Over 53.8 million famers were benefitted by the Pradhan Mantri Fasal Bima

Yojana (PMFBY) in FY20.

• In April 2020, Axis Bank acquired an additional 29% stake in Max Life

Insurance.

• In November 2019, Airtel partnered with Bharti AXA Life to launch prepaid

bundle with insurance cover.

• In September 2019, Competition Commission of India (CCI) approved

acquisition of shares in SBI General Insurance by Napean Opportunities LLP

and Honey Wheat.

12
Government Initiatives

The Government of India has taken number of initiatives to boost the insurance

industry. Some of them are as follows:

• As per Union Budget 2019–20, 100% foreign direct investment (FDI) was

permitted for insurance intermediaries.

• In September 2018, National Health Protection Scheme was launched under

Ayushman Bharat to provide coverage of up to Rs 500,000 (US$ 7,723) to

more than 100 million vulnerable families. The scheme is expected to increase

penetration of health insurance in India from 34% to 50%.

• The Insurance Regulatory and Development Authority of India (IRDAI) plans

to issue redesigned initial public offering (IPO) guidelines for insurance

companies in India, which are to looking to divest equity through the IPO

route.

• IRDAI has allowed insurers to invest up to 10% in additional tier 1 (AT1)

bonds that are issued by banks to augment their tier 1 capital, in order to

expand the pool of eligible investors for the banks.

13
Road Ahead

The future looks promising for the life insurance industry with several changes in

regulatory framework which will lead to further change in the way the industry

conducts its business and engages with its customers.

The overall insurance industry is expected to reach US$ 280 billion by 2020. Life

insurance industry in the country is expected to increase by 14–15% annually for the

next three to five years.

Demographic factors such as growing middle class, young insurable population and

growing awareness of the need for protection and retirement planning will support the

growth of Indian life insurance.

Digitization and its fastest implementation will determine the future of all life

insurance companies. The company that achieves this at the earliest will propel

themselves ahead in the race of capturing a considerable size of the market pie.

Digitization will also help in a smooth and effortless journey for the customer starting

from an application for life insurance to receiving the claim amount without any

hassle. Thus, creating a delightful journey for the entire customer base.

The life insurance industry has undergone several changes in its regulatory framework

which has impacted the business sector and its engagement with its customers.

As per a report of the India Brand Equity Foundation, the insurance industry is

expected to reach US$280 billion by 2020.

Due to the Covid-19 pandemic, the life insurance industry has become more

technologically advanced and customer-oriented with better operational performance

and efficiency.

14
 CHAPTER-2

INDUSTRY PROFILE

15
 1. Life Insurance Corporation of India

Life Insurance Corporation of India popularly known as LIC is the largest life

insurance company in India owned by the Government of India. LIC, one of the top

10 insurance companies in India, came into existence in the year 1956. LIC makes

insurance accessible for every person in any corner of the country with 2048 branch

offices, 113 divisional offices, 8 zonal offices and 1381 satellite offices. Currently,

LIC’s total asset under management is INR 3,111,847 crores (USD 450 billion). LIC

being the dominant insurance player has a huge customer base of over 29 crores

policyholders. LIC is a trusted insurance brand that offers great convenience to its

customers through its excellent customer services on the digital platform and also

through branch offices and various other tie-ups. LIC offers numerous life insurance

products that can meet the unique needs of a variety of customer segments. For all the

milestones it has achieved, LIC has been consistently recognized and awards.

Following are some of the awards received by LIC:

• LIC has been consistently winning the Reader’s Digest Trusted Brand Award

• According to the Brand Trust Report, LIC has been consistently voted as ‘India’s

Most Trusted Brand’ in BFSI category

• LIC has won ‘Best Life Insurance Company of the Year’ and ‘Most Preferred Life

Insurance Company of the Year’ award.

2. ICICI Prudential Life Insurance

ICICI Prudential Life Insurance Company is promoted by ICICI Bank Limited and

Prudential Corporation Holdings Limited. Founded in the year 2000, ICICI Prudential

Life is one of the best insurance company in India having its presence all over the

country today with its strong bancassurance channel and multiple distribution

16
 channels. Total assets under management of the company are INR 1,604.10 billion.

With the customer-centric approach, ICICI Prudential Life offers various long-term

protection and savings plans for a diverse customer segment. For its excellence in the

field of insurance, ICICI Prudential Life Insurance Company has been receiving many

accolades and awards. Let’s take a look at a few of such recognitions.

• ICICI Prudential Life has received ‘Life Insurance Company of the Year’ award at

India Summit and Awards 2019

• ICICI Prudential Life has received ‘Life Insurance Provider of the Year’ by Outlook

Money Awards 2018

• ICICI Prudential Life has received ‘Best Term Insurance Provider of the Year’ award

by Money Today Financial Awards 2017-18

• ICICI Prudential Life is awarded as ‘Best Customer Orientation in Life Insurance’

award by Emerging Asia Awards 2018

• ICICI Prudential Life is awarded as ‘Best Growth in Life Insurance’ category by

Emerging Asia Awards 2018.

3. Bajaj Allianz Life Insurance Company

Bajaj Allianz Life Insurance Company founded in the year 2001 is a joint venture

between Bajaj Finserv Limited of Bajaj Group. Bajaj Allianz Life has 759 branches

across the country to offer innovative insurance solutions to various customer

segments. Bajaj Allianz Life Insurance is known for its strong innovative products

and timely customer service. The company has won various awards and recognition

for its contribution to the insurance industry. Following are some of the awards

received by Bajaj Allianz Life Insurance:

17
• Bajaj Allianz Life has been recognised as the ‘Digital Marketer of the Year 2018’ in

the insurance category

• Bajaj Allianz won the ‘Customer Service Excellence Award’ at the NASSCOM BPM

Strategy Summit 2018.

• Bajaj Allianz Life ranked amongst the Top-75 Most Valuable Indian Brands.

4. SBI Life Insurance Company

SBI Life Insurance Company is a joint venture between State Bank of India (SBI),

India’s largest bank and BNP Paribas Cardif, French multinational bank and financial

services company. Currently, SBI Life Insurance has an authorised capital of INR 20

billion (USD 290 million). SBI Life was first started as a bancassurance business

which is now extended to the multi-distribution channel. With customer service

excellence and product innovations, the company has been growing year on year. SBI

Life has received many awards and accolades for the work in the field. Following are

some of them:

• SBI Life has won ‘Brand of the Year 2016-17’ award in the insurance category

• SBI Life has won ‘Private Sector Life Insurance Company of the Year’ award at

Fintelekt Insurance Awards

• SBI Life has won ‘Bancassurance Leader, Life Insurance’ in large companies

category.

SBI Life Insurance is one of the market leaders for life insurance policies in India. It

offers different policies with several benefits for the policyholders.

18
 5. Max Life Insurance Company

Max Life Insurance Company founded in the year 2000 is the largest non-bank

private sector insurance company in India. Max Life Insurance Company is a joint

venture between Indian Max India Ltd, a multi-business Indian corporate and Mitsui

Sumitomo Insurance Company, a Japanese Insurance Company. It is one of the

fastest-growing insurance companies in India and Max Life’s asset under

management has now touched the mark of INR 50,000 crores. Max Life has a

customer base of more than 30 lakhs. With strong online presence, wide portfolio of

products, multi-distribution channel and 1090 offices across the country, Max Life

Insurance Company provides high-quality customer services. Max Life has been

receiving awards and recognitions consistently. With high claim settlement ratio, Max

Life has been awarded as ‘Claims Service Leader’ and ‘Excellence in Claims Service’

by CMO Asia Awards.

6. HDFC Life Insurance Company

HDFC Life Insurance Company, one of the top insurance companies in India is a joint

venture between HDFC Ltd, leading housing finance institution in India and Standard

Life Aberdeen, a global investment company. Founded in the year 2000, HDFC Life

offers a wide array of insurance and investment solutions to various customer

segments. HDFC Life serves its customers across the country through 412 branches

and additional distribution touchpoints and bancassurance partners. With strong

digital platform, services are accessible easily to the customers. HDFC Life has

received many accolades and awards for its continuous contribution to the Indian

Insurance Industry. Following are some of the details:

• HDFC Life is ranked as ‘Most Valuable Private Life Insurance Indian Brand’

19
• HDFC Life has received ‘Creative Excellence Award’ at INDIAA awards 2018

• HDFC Life has received ‘Best Life Insurance Company’, ‘Best Analytic Initiative of

the Year’ and ‘Best Underwriting Initiative of the Year’ at BFSI awards.

• HDFC Life is recognized as the Best 50 PCI Companies for 2019

HDFC life insurance offers considerable flexibility with their insurance policies, at

99.07%, their claim settlement ratio is quite impressive as well.

7. Reliance Nippon Life Insurance Company

Reliance Nippon Life Insurance Company, founded in the year 2001 is one of the

leading insurance companies in India catering to various segments of people. Reliance

has more than 10 million policyholders. The company has made insurance accessible

for many through its strong distribution network of 727 branches. Reliance Life has a

product for every possible need of the individual. Currently, the company’s assets

under management is INR 20,281 Cr. The company has received many awards.

• Reliance Life has received ‘Innovative Insurance Provider of the Year’ at ET BFSI

Excellence Awards 2019

• Reliance Life has received ‘Best Risk Innovation of the Year’ award

• Reliance Life has won ‘Best Life Insurance Company (innovative Products)’ title.

8. Bharti AXA Life Insurance Company

Bharti AXA Life Insurance was founded in the year 2006. It is a joint venture

between AXA Group and Bharti Enterprises. Strong financial expertise and domestic

business excellence of these companies have laid a strong background for the

company. Bharti AXA Life has introduced various innovative insurance products to

cater to the unique needs of customers. Bharti AXA Life’s distribution network is

20
spread across 123 cities in the country. The company has a customer base of more

than 10, 50,000. The company offers various plans starting from protection plan to

save, health and group plans and most of them are offered conveniently on an online

platform.

Bharti AXA won the ASSOCHAM Award in March 2019 in recognition of

excellence in the field of insurance.

9. Tata AIA Life Insurance Company

Tata AIA Life Insurance Company is a joint venture between Tata Sons Private

Limited, one of the largest business groups and AIA Group Limited, Asia’s largest

insurance group. Tata AIA Life Insurance Company’s asset under management in

2019 is INR 28,430 crores. Being one of the trusted insurance brands in India, Tata

AIA Life offers numerous insurance solutions starting from protection to wealth

creation. The policies provide simple solutions for unique insurance needs along with

excellent customer service.

10. Oriental Insurance Company Ltd.

It is a public sector general insurance company of the Government of India. The

headquarter of the company is located in New Delhi. It has 31 regional offices and

more than 1800 active branches across the country. The company also has branches

in Nepal, Kuwait, and Dubai. The company had recorded a gross premium of

₹7,282.54 crores in the financial year 2013-2014. For the Financial year 2016-17, the

Company procured a global premium of ₹11,100 crores. The Company offers more

than 170 General Insurance products.

21
CHAPTER-3

22
IMPACT OF COVID-19 PANDEMIC ON INSURANCE

INDUSTRY

The pandemic has pushed businesses across sectors to change the way they operate

and the insurance industry is no exception. From selling new policies to settling

claims, the extended lockdown in the wake of covid-19 has pushed insurance

companies to depend heavily on their digital architecture. The outbreak has

decreased the global insurance index by 22.6% leading to a decline in share prices

by 25.9%. A report by professional services firm PwC, titled Covid-19: Impact on the

Indian Insurance Industry, says that the two productive months for the insurance

industry—March for life insurance and April for non-life corporate renewals—have

been hit by around 30% and 15%, respectively.

Impact on individual insurance sector

1. General insurance

A large proportion of this industry is dependent on industries and businesses such as

automobile, travel, hotels and infrastructure. So challenges in these sectors due to the

lockdown could create additional issues. The automobile sector was witnessing a

slowdown even before the pandemic set in. The over 70-day lockdown leading to job

loss and pay cuts across most industries will put the purchase of new vehicles on the

back burner, hurting the motor insurance space further.

Animesh Das, head of product strategy, Acko General Insurance, said for every

insurer, the motor portfolio dipped in April-May because customers delayed renewals

and the sale of new cars was minimal. It’ll take two-three months for normalcy to

return because the production of new vehicles is gradually getting back on track," he

said.

23
For motor insurance, the number of claims has come down to less than 5% of the

normal which led to some savings for insurers.

Even multiple-year third-party insurance may see drop-offs despite being compulsory.

On the personal accident front, too, low claims are expected due to lack of activity

and movement, and also lower renewal of policies. This is a category where

penetration is clearly very low and insurance companies would do well to concentrate

and try to increase business here as it is not dependent on underlying economic

activity, said the report.

Naval Goel, CEO and founder, PolicyX, an online insurance aggregator, said a fall in

the sale of new vehicles directly impacts the growth of new premiums. Overall till

June, the industry has seen de-growth in the motor segment by 11%. The slowdown

will continue for the next one quarter and hopes are pinned on the festive season, he

added.

2. Health Insurance

According to the report, private health insurance schemes cover only 18% of the

population in urban areas and a little over 14% in rural areas. “Since the risk of covid-

19 is not currently priced under active products, these claims may cause an additional

burden on the books of insurers if treated outside government hospitals," said the

report.

However, Amit Chhabra, health business head, Policybazaar.com, an online insurance

marketplace, said the number of claims for covid-19 is not really hurting insurers as

much because the number of planned surgeries are down at the moment. For general

insurers who have a mixed bag of products, motor claims are down due to the

lockdown and social distancing which means their loss ratio is down too.

24
“Planned surgeries will happen eventually and claims could go up then. But it’s also

important to note that covid-19 claims are not very high in number because the

percentage of people covered under health insurance is quite low. As a percentage of

the total number of cases, the claims filed are very less," said Chhabra.

Insurers believe the fear around covid-19 has pushed people to buy health insurance.

The report said inquiries about health insurance policies have increased by about 30-

40%. But the issue now is the lack of data related to patient profiles, morbidity rates,

and the course and cost of treatment which is required to underwrite risk and

determine the premiums for products that are designed specifically for covid-19.

Companies are consequently at the risk of under or overpricing their products, said the

PwC report. “Based on the emerging experience of Covid-19 claims, insurance

companies will need to test the hypothesis of the state-wise or district-wise possibility

of escalation of claims."

3. Life Insurance- With a crisis like this, there is a rush to increase one’s cover.

According to the PwC report, pure life covers should see renewed interest, and since

that is largely an online market, it should see a boost in demand.

“We have seen two key areas of impact—primarily, we see greater awareness of

being protected and protecting loved ones from unforeseen risks. In line with this,

consumers are more inclined towards pure protection covers leading to an increased

demand for term plans," said Rushabh Gandhi, deputy CEO, IndiaFirst Life Insurance

Co Ltd.

Long-term guarantees will look attractive, but insurers will face constraints in

continuing to marketing these products as interest rates plummet. He added that the

25
overall uncertainty in the environment, the market volatility and the falling interest

rates have made an average consumer more cautious.

The report said investment-linked products could also experience a drop in demand as

consumer confidence in the stock market is shaky. “Overall market volatility and

falling interest rates have taken the focus away from products that have long-term

savings and variable returns through linked instruments or annual bonuses. This has

led to consumer confidence shifting to products with guaranteed returns and benefits,

such as non-participating plans apart from the shift to pure term plans," said Gandhi.

Though the pandemic has changed the way people look at insurance and has pushed

companies to tweak their product strategies, the report said there lie opportunities to

re-imagine operations.

4. Automobile Insurance- the automobile sector, which accounts for over 35% of

the overall insurance premium collection, was already witnessing a slowdown

when the COVID-19 outbreak took place. The pandemic and the resultant

lockdown further impacted the automobile industry thus reducing significant

revenue for the insurance industry.

This blow turned out to be a major wake-up call for the industry experts who then

started foraging for innovative approaches and solutions to keep their customer

base engaged and interested. One of the innovative approaches is the “Pay-as-you-

drive” model.

With most companies adopting the work-from-home policy, there has happened a

drastic reduction in the number of motor vehicles on Indian roads resulting in a

nationwide reduction in the number of kilometers driven. Thus, insurance

customers who see a reduced usage for their vehicles this year and show a lower

26
chance of availing a high-priced insurance coverage can avail of an insurance

policy at a discounted rate under the “pay-as-you-drive” model. This new type of

car insurance policy allows car owners to insure their vehicles for only the

kilometers that they tend to drive against a general average yearly driving distance.

At a larger scale, the introduction of pay-as-you-use shall prove to be a significant

shift in the history of automobile insurance in India as it seeks to become more

responsive to the usage (and consequently) needs of the customers.

How the industry is rising up to the challenge?

The insurance industry rides on the back of other industries. Hence, unless the

overall economy bounces back or the insurance industry finds business in hitherto

uncovered areas, the industry is likely to struggle in maintaining its momentum.

The COVID-19 crisis has given rise to both immediate and potential challenges for

the insurance industry in near future.

Insurance companies are taking required measures to ensure a smooth transition of

the industry into the post COVID world. From the front offices encouraging their

customers to connect digitally to supporting their agents financially in these

uncertain times by providing them advance commissions, the insurance industry is

set to witness a major transition. The major disruption will be caused by

digitization which was already taking place in the insurance industry globally but

the onset of the COVID crisis has accelerated the transition process. This would

effectively mean that in the coming days the digital customers of the industry can

expect only better choices and smoother delivery systems.

While the front offices are changing the way the insurance industry operates and

interacts with its customers, the back offices are set to provide several relaxations

27
and updated guidelines for insurers.

The industry deals with the possibility of claims being made on a policy for the

next seven years in the case of some risks. Hence, for long-term contracts in life

and pension, the sustainability of investment returns and margins will have to be

recalibrated. Finally, the future of doing business has to be relooked at. While the

insurance industry has to plan for long-term consequences, immediate focus should

be concentrated on the following aspects:

● Traditionally, the insurance industry has been employee-centric. With the advent

of digital disruption of the industry, there will be an impact on its vast employee

bases in the foreseeable future. However, despite the switch to digital mode, a vast

majority of the business will require one-on-one communication or face-to-face

interactions. As a result, companies need to ensure that their agents have access not

only to safety equipment in the office but also required data and applications to

safely work from home.

● The insurance industry is supposed to help other industries and hence, cannot

overlook any risks to its own existence. They must plan for business continuity in

the light of future disturbances such as natural disasters, environmental issues,

geopolitical crises, and the resulting instability of global regulations.

● The industry must be prepared for reduced cash flows due to the non-payment of

premiums or delayed renewals.

● It also needs to carefully monitor decreased yield from the investment portfolio

as interest rates fall from governmental actions to ease business.

28
Cover for COVID-19 pandemic:

The novel coronavirus outbreak in 2020 has led life insurance companies to provide

prevention against such other diseases caused by viruses. Though the customer’s point

of view has changed, insurance industries are pushed to re-imagine their product

strategies during this pandemic. Insurance companies worldwide are offering various

life-insurance policies and Covid-19 specific policies to ensure financial stability as

well as health assistance.

Customer Segment Health and Wellness Initiative:

The insurance industry at its emerging state used to offer an overall approach (general

approach) to policies, but as we move forward, customers are provided with advanced

customized solutions for their current needs. Hence life insurance has made customer-

specific plans which focus on the health and wellness of the customer and are flexible.

It is one of the remarkable trends in 2020. By taking the initiative for the customer’s

health and wellness, life insurers are open to broad market opportunities and an

enhanced customer relationship.

Technological progress in the Industry:

As we are aware of how digitalization has impacted the different sectors worldwide in

2020, life insurance is also one of the industries that have yet to enfold full benefits of

it. It has also created a more natural way to provide access to modified technology-

based quick customer service and a new range of customers from remote locations.

Digitalization has increased operational efficiency along with extensive distribution

channels and customer engagement. Customers can also get a quick diagnosis along

with the treatment in a small-sized mobile phone. Modern technologies like

Augmented Reality (AR) and block-chain are also set to be used by insurers to give

29
customers a more rational approach. This will make it possible for policyholders to

ask insurance and medical questions without human assistance, making the process

more accurate, cost-effective, and faster.

Development in the Customer Claim Settling:

Along with technological progress, the insurance industry is also focused on solving

customer-oriented issues. Claims can be raised more swiftly in a shorter-time with

online portal access to the customer.

Growing Benefits with Multiple Options:

In 2020 the Covid-19 pandemic has led various insurance industries to come up with

embracing proposals and offers that have not been explored before. Accordingly, it

has given rise to advanced and modified trends to suit the customer’s requirements.

This has resulted in different kinds of policies with additional benefits.

Insurance being a significant investment and beneficial during a climacteric period

like the Covid-19, the insurance industry has taken up strategic attempts by

developing alternative products to manage the unforeseeable market environment.

Other factors like the emerging middle class and young population along with

protection against the unpredictable future and retirement planning have supported the

development of the Indian life insurance industry.

30
 Types of Insurance

There is a wide range of insurance policies, each aimed at safeguarding certain

aspects of your health or assets.

Broadly, there are 8 types of insurance, namely:

• Life Insurance

• Motor insurance

• Health insurance

• Travel insurance

• Property insurance

• Mobile insurance

• Cycle insurance

• Bite-size insurance

1. Life Insurance

Life Insurance refers to a policy or cover whereby the policyholder can ensure

financial freedom for his/her family members after death. Suppose you are the sole

earning member in your family, supporting your spouse and children.

In such an event, your death would financially devastate the whole family. Life

insurance policies ensure that such a thing does not happen by providing financial

assistance to your family in the event of your passing.

31
 Types of Life Insurance Policies

There are primarily seven different types of insurance policies when it comes to life

insurance. These are:

• Term Plan - The death benefit from a term plan is only available for a specified

period, for instance, 40 years from the date of policy purchase.

• Endowment Plan - Endowment plans are life insurance policies where a portion of

your premiums go toward the death benefit, while the remaining is invested by the

insurance provider. Maturity benefits, death benefit and periodic bonuses are some

types of assistance from endowment policies.

• Unit Linked Insurance Plans or ULIPs - Similar to endowment plans, a part of your

insurance premiums go toward mutual fund investments, while the remaining goes

toward the death benefit.

• Whole Life Insurance - As the name suggests, such policies offer life cover for the

whole life of an individual, instead of a specified term. Some insurers may restrict the

whole life insurance tenure to 100 years.

• Child’s Plan - Investment cum insurance policy, which provides financial aid for

your children throughout their lives. The death benefit is available as a lump-sum

payment after the death of parents.

• Money-Back - Such policies pay a certain percentage of the plan’s sum assured after

regular intervals. This is known as survival benefit.

• Retirement Plan - Also known as pension plans, these policies are a fusion of

investment and insurance. A portion of the premiums goes toward creating a

retirement corpus for the policyholder. This is available as a lump-sum or monthly

payment after the policyholder retires.

32
 Benefits of Life Insurance

If you possess a life insurance plan, you can enjoy the following advantages from the

policy.

• Tax Benefits - If you pay life insurance premiums, you are eligible for tax benefits in

India, under Section 80(C) and 10(10D) of the Income Tax Act. Thus, you can save a

substantial sum of money as taxes by opting for a life insurance plan.

• Encourages Saving Habit - Since you need to pay policy premiums, buying such an

insurance policy promotes the habit of saving money.

• Secures Family’s Financial Future - The policy ensures your family’s financial

independence is maintained even after your demise.

• Helps Plan Your Retirement - Certain life insurance policies also act as investment

options. For instance, pension plans offer a lump-sum payout as soon as you retire,

helping you to fund your retirement.

Now that you know all about life insurance policies read on to understand the various

facets of other general insurance policies.

2. Motor Insurance

Motor insurance refers to policies that offer financial assistance in the event of

accidents involving your car or bike. Motor insurance can be availed for three

categories of motorised vehicles, including:

• Car Insurance - Personally owned four-wheeler vehicles are covered under such a

policy.

• Two-wheeler Insurance - Personally owned two-wheeler vehicles, including bikes

and scooters, are covered under these plans.

33
• Commercial Vehicle Insurance - If you own a vehicle that is used commercially,

you need to avail insurance for the same. These policies ensure that your business

automobiles stay in the best of shapes, reducing losses significantly.

Types of Motor Insurance Policies

Based on the extent of cover or protection offered, motor insurance policies are of

three types, namely:

• Third-Party Liability - This is the most basic type of motor insurance cover in India.

It is the minimum mandatory requirement for all motorised vehicle owners, as per

the Motor Vehicles Act of 1988. Due to the limited financial assistance, premiums for

such policies also tend to be low. These insurance plans only pay the financial

liability to the third-party affected in the said mishap, ensuring that you do not face

legal hassle due to the accident. They, however, do not offer any financial assistance

to repair the policyholder’s vehicle after accidents.

• Comprehensive Cover - Compared to the third-party liability option, comprehensive

insurance plans offer better protection and security. Apart from covering third party

liabilities, these plans also cover the expenses incurred for repairing the damages to

the policyholder’s own vehicle due to an accident. Additionally, comprehensive plans

also offer a payout in case your vehicle sustains damage due to fire, man-made and

natural calamities, riots and others such instances. Lastly, you can recover your bike’s

cost if it gets stolen, when you have a comprehensive cover in place. One can also opt

for several add-ons with their comprehensive motor insurance policy that can make it

better-rounded. Some of these add-ons include zero depreciation cover, engine and

gear-box protection cover, consumable cover, breakdown assistance, etc.

• Own Damage Cover - This is a specialised form of motor insurance, which insurance

companies offer to consumers. Further, you are eligible to avail such a plan only if

34
 you purchased the two-wheeler or car after September 2018. The vehicle must be

brand new and not a second-hand one. You should also remember that you can avail

this standalone own damage cover only if you already have a third party liability

motor insurance policy in place. With own damage cover, you basically receive the

same benefits as a comprehensive policy without the third-party liability portion of

the policy.

Benefits of Motor Insurance Policies

Cars and bikes are increasingly more expensive with each passing day. At such a

time, staying without proper insurance can lead to severe monetary losses for the

owner. Listed below are some advantages of purchasing such a plan.

• Prevents Legal Hassle - Helps you avoid any traffic fines and other legalities that

you would otherwise need to bear.

• Meets All Third-Party Liability - If you injure a person or damage someone’s

property during a vehicular accident, the insurance policy helps you meet the

monetary losses, effectively.

• Financial Assistance to Repair Your own Vehicle - After accidents, you need to

spend considerable sums on repairing your own vehicle. Insurance plans limit such

out of pocket expenses, allowing you to undertake repairs immediately.

• Theft/loss cover - If your vehicle is stolen, your insurance policy will help you

reclaim a portion of the car/bike’s on-road price. You can expect similar assistance if

your vehicle is damaged beyond repair due to accidents.

Additionally, individuals who own a commercial car/two-wheeler can also avail tax

benefits if they pay premiums for that vehicle.

35
 3. Health Insurance

Health insurance refers to a type of general insurance, which provides financial

assistance to policyholders when they are admitted to hospitals for treatment.

Additionally, some plans also cover the cost of treatment undertaken at home, prior to

a hospitalisation or after discharge from the same.

With the rising medical inflation in India, buying health insurance has become a

necessity. However, before proceeding with your purchase, consider the various types

of health insurance plans available in India.

Types of Health Insurance policies

There are eight main types of health insurance policies available in India. They are:

• Individual Health Insurance - These are healthcare plans that offer medical cover to

just one policyholder.

• Family Floater Insurance - These policies allow you to avail health insurance for

your entire family without needing to buy separate plans for each member. Generally,

husband, wife and two of their children are allowed health cover under one

such family floater policy.

• Critical Illness Cover - These are specialised health plans that provide extensive

financial assistance when the policyholder is diagnosed with specific, chronic

illnesses. These plans provide a lump-sum payout after such a diagnosis, unlike

typical health insurance policies.

• Senior Citizen Health Insurance - As the name suggests, these policies specifically

cater to individuals aged 60 years and beyond.

• Group Health Insurance - Such policies are generally offered to employees of an

organisation or company. They are designed in such a way that older beneficiaries can

36
 be removed, and fresh beneficiaries can be added, as per the company’s employee

retention capability.

• Maternity Health Insurance - These policies cover medical expenses during pre-

natal, post-natal and delivery stages. It covers both the mother as well as her newborn.

• Personal Accident Insurance - These medical insurance policies only cover financial

liability from injuries, disability or death arising due to accidents.

• Preventive Healthcare Plan - Such policies cover the cost of treatment concerned

with preventing a severe disease or condition.

Benefits of Health Insurance

After assessing the various kinds of health insurance available, you must be

wondering why availing such a plan is essential for you and your loved ones. Look at

the reasons listed below to understand why.

• Medical Cover - The primary benefit of such insurance is that it offers financial

coverage against medical expenditure.

• Cashless Claim - If you seek treatment at one of the hospitals that have tie-ups with

your insurance provider, you can avail cashless claim benefit. This feature ensures

that all medical bills are directly settled between your insurer and hospital.

• Tax Benefits - Those who pay health insurance premiums can enjoy income tax

benefits. Under Section 80D of the Income Tax Act one can avail a tax benefit of up

to Rs.1 Lakh on the premium payment of their health insurance policies.

There may be additional advantages, depending on the insurance provider in question.

37
 4. Travel Insurance

When talking about the different types of insurance policies, one must not forget to

learn more about travel insurance plans. Such policies ensure the financial safety of a

traveller during a trip. Therefore, when compared to other insurance policies, travel

insurance is a short-term cover.

Depending on the provider you choose, travel insurance may offer financial aid at

various times, such as during loss of baggage, trip cancellation and much more. Here

is a look at some of the different types of travel insurance plans available in the

country:

• Domestic Travel Insurance - This is the kind of travel insurance policy that

safeguards your finances during travels within India. However, if you plan to step

outside the country for a vacation, such a policy would not offer any aid.

• International Travel Insurance - If you are stepping out of the country, ensure you

pick an international travel insurance plan. It allows you to cover the unforeseen

expenses that can arise during your trip like medical emergencies, baggage loss, loss

of passport, etc.

• Home Holiday Insurance - When you are travelling with family, your home remains

unguarded and unprotected. Chances of burglary are always significant, which may

lead to significant losses. Thankfully, with home holiday insurance plans, which are

often included within travel policies, you are financially protected from such events as

well.

Benefits of Travel Insurance

The following aspects are covered under travel insurance plans:

38
• Cover Flight Delay - Flight delays or cancellations can lead to significant losses for

the passenger. If you buy travel insurance, you can claim such financial losses from

the insurer.

• Baggage Loss/Delay - Travel insurance lets you claim monetary assistance if there is

a delay or you happen to lose your luggage during the trip. With this amount, you can

purchase some of the necessary items.

• Reclaim Lost Travel Documents - Visa and passport are essential documents during

an international trip. Opting for international travel insurance ensures that you have

the necessary financial backing to reapply for interim or replacement documents as

and when necessary.

• Trip Cancellation Cover - A sudden death in the family or a medical emergency

may play spoilsport with your travel arrangements. Thankfully, international travel

insurance plans support trip cancellations in such events. You can claim financial

assistance to pay penalties and cancellation charges for flights, hotels, etc.

Make sure that you choose an insurer carefully, especially a company that is reliable

and available 24x7 to assist you.

5. Property Insurance

Any building or immovable structure can be insured through property insurance plans.

This can be either your residence or commercial space. If any damage befalls such a

property, you can claim financial assistance from the insurance provider. Keep in

mind that such a plan also financially safeguards the content inside the property.

Types of Property Insurance in India

Here are some types of property insurance policies available in India:

39
• Home Insurance - With such a policy, you remain free from all financial liabilities

that may arise from damage to your home or contents inside due to fires, burglaries,

storms, earthquakes, explosions and other events.

• Shop Insurance - If you own a shop, which acts as a source of income for you, it is

integral to protect yourself from financial liability arising from the same. Whether the

liability occurs due to natural calamities or due to accidents, with these plans, you can

immediately undertake repairs to the shop.

• Office Insurance - Another type of property insurance policy, office insurance

ensures that the office building and all the equipment inside are significantly protected

in the event of unforeseen events. Generally, office spaces include expensive

equipment, such as computers, servers and much more. Thus, availing these plans is

essential.

• Building Insurance - If you own a complete building, opting for home insurance may

not be sufficient. Instead, you can purchase building insurance to cover the entire

premises.

Benefits of Property Insurance

If you still think that property cover is not one of the types of insurance plans you

need to avail, take a look at some of the advantages from the same.

• Protection against Fires - While the insurance policy cannot prevent fires, it can

prevent financial liabilities from such an event.

• Burglaries - If your property exists in an area prone to theft and burglaries, such a

policy is vital to ensure financial security.

• Floods - In certain parts of India, floods are common. These floods can ravage your

property leading to substantial losses. Property insurance also protects against such

events.

40
• Natural Calamities - The plan also offers financial aid against damage arising from

earthquakes, storms and more.

Rebuilding or renovation of a property is immensely expensive. Thus, property

insurance policies are the best option to ensure long-term financial health.

6. Mobile Insurance

Owing to the rising price of mobile phones and their several applications today, it has

become imperative to insure the device. Mobile insurance allows you to reclaim

money that you spend on repairing your phone in the event of accidental damage.

Further, you can also claim the same in case of phone theft, making it easier to replace

the handset with a new phone.

Benefits of Mobile Insurance

Mobile insurance policies are extremely beneficial, especially for those who own a

premium smartphone.

• Comprehensive protection for new devices - The value of phones tend to decline

with time. Thus, when the handset is new, phone insurance can help safeguard its

significant value.

• Coverage against Damage to Screen - If you accidentally damage the smartphone

screen, which is one of the most important parts of such devices, your insurance plan

will pay for the repair expenses.

• Theft or Robbery of Smartphone - Nothing is worse than buying your dream

smartphone and losing it due to theft or burglary. Well, phone insurance will help you

afford a replacement handset if such an unfortunate thing happens.

Some insurers may not allow you to buy insurance for the smartphone after a month

or two passes from the purchase of the handset.

41
 7. Cycle Insurance

Bicycles are valuable properties in India as some people rely on these vehicles for

their daily commute. A cycle insurance policy ensures that you have access to

necessary funds should your bicycle undergo accidental damage or theft. It saves your

out of pocket expenses, while also ensuring immediate repairs to the vehicle.

Benefits of Cycle Insurance

The advantages of availing such an insurance policy are:

• Worldwide Coverage - Depending on the insurance provider, cycle insurance

policies provide financial assistance regardless of where your bicycle undergoes

damage. Even if you meet with a cycling accident in a different country, such a plan

will offer aid.

• Protection against Fires and Riots - If your bicycle sustains damage due to

accidental fires and/or rioting, insurance policies will provide the necessary financial

assistance to repair or undo the damage.

• Accidental Death Benefit - If you pass away due to bicycle accidents, the insurance

policy for the cycle would offer a lump-sum payout to your surviving family

members.

Regardless of your cycle’s price, opting for insurance can reduce your financial

liabilities significantly.

42
8. Bite-Size Insurance

Bite-sized insurance policies refer to sachet insurance plans that minimise your

financial liability for a very limited tenure, generally up to a year.

These insurance plans allow you to protect your finances against specific damage or

threats.

For instance, particular bite-sized insurance may offer accidental cover of Rs. 1 Lakh

for a year. You can choose this policy when you think you might be particularly

susceptible to accidental injuries.

Another example is insurance cover for specific diseases. For instance, if your area is

prone to water-borne diseases, such as cholera, you can pick a policy that covers

cholera treatment and all associated costs for a 1-year period.

Benefits of Bite-sized Insurance

The primary benefit of bite-size insurance policies is that it allows you to avail

financial protection at very limited prices.

The premiums are so low that it hardly makes any impact on your overall monthly

expenditures. In comparison, the sum insured is significant.

43
IMPORTANT TERMINOLOGIES:

1. Policyholder:

The policyholder is the one who proposes the purchase of the life insurance policy

and pays the premium (see #7 Premium). The policyholder is the owner of the policy

and s/he may or may not be the life assured (see # 2 Life assured).

2. Life assured:

Life assured is the insured person. Life assured is the one for whom the life insurance

plan is purchased to cover the risk of untimely death. Primarily, the breadwinner of

the family is the life assured. Life assured may or may not be the policyholder. For

instance, a husband buys a life insurance plan for his wife. As the wife is a

homemaker, husband pays the premium, thus the husband is the policyholder, and

wife is the life assured.

3. Sum assured (coverage):

Life insurance is meant to provide a life cover to the insured. The financial loss that

may arise due to the passing away of the life assured is generally chosen as a life

cover when buying a life insurance plan. In technical terms, ‘Sum Assured’ is the

term used for an amount that the insurer agrees to pay on death of the insured person

or occurrence of any other insured event.

You may come across the term ‘sum assured’ at the time of comparing policies

online, when buying life insurance plan, and in the policy document. The sum assured

is the amount that the life insurance company will pay to the nominee (see #4

Nominees) if the insured person dies during the policy tenure. The sum assured is

chosen by the policyholder at the time of purchase.

44
4. Nominee:

The ‘nominee’ is the person (legal heir) nominated by the policyholder to whom the

sum assured and other benefits will be paid by the life insurance company in case of

an unfortunate eventuality. The nominee could be the wife, child, parents, etc. of the

policyholder. The nominee needs to claim life insurance, if the life assured dies

during the policy tenure.

5. Policy tenure:

The ‘policy tenure’ is the duration for which the policy provides life insurance

coverage. The policy tenure can be any period ranging from 1 year to 100 years or

whole life, depending on the types of life insurance plan and its terms and conditions.

Many a times, it is also referred to as policy term or policy duration. The policy tenure

decides for how long the company is providing the risk coverage. However, in the

case of whole life insurance plans, the life coverage is till the time life assured is

alive.

6. Maturity age:

Maturity age is the age of the life assured at which the policy ends or terminates. This

is similar to policy tenure, but a different way to say how long the plan will be in

force. Basically, the life insurance company declares up front the maximum age till

which the life insurance coverage will be provided to the life insured. For instance,

you are 30 years old, you opt for a term plan with a maturity age of 65 years. That

means the policy will have a coverage till you are 65 years old, which also means, the

maximum policy tenure for a 30-year-old is 35 years.

45
7. Premium:

The premium is the amount you pay to keep the life insurance plan active and enjoy

continued coverage. If you are unable to pay the premium before the payment due

date and even during the grace period, the policy terminates. There are various

options on how you can pay the premium – regular payment, limited payment term,

single payment.

8. Premium payment term/mode/ frequency:

You can pay the life insurance premium as per your convenience.

Regular Premium Payment - You can pay premium regularly throughout the policy

term either – monthly, quarterly, half-yearly or yearly. Limited Premium Payment –

You can choose to pay the premiums for a limited amount of time. In this option, you

do not pay till the end of the policy term, but for a certain pre-fixed number of years.

For example, 10 years, 15 years, 20 years, and so on. Single Premium Payment – You

can also choose to pay the premium for the entire duration of the plan as a lumpsum

in one single go.

9. Riders:

Riders are an additional paid-up feature to widen up the scope of the base life

insurance policy. Riders are bought at the time of purchase or on policy anniversary.

There are different types of riders that can be bought along with the base plan.

However, number and type of riders will differ from insurer to insurer. Plus, the terms

and conditions may differ from one insurance to another. However, here’s the list of

some well-known riders offered by life insurance companies.

• Accidental Death Benefit Rider

46
 • Accidental Total and Permanent Disability Benefit Rider

• Critical illness Cover

• Hospital Cash

• Waiver of Premiums

For more in-depth guide read – life insurance riders and how to choose one.

10. Death Benefit:

You will come across ‘Death Benefit’ quite frequently whenever you are either

planning to buy a life insurance plan or comparing different insurance plans online.

The ‘Death Benefit’ is what life insurance company pays to the nominee in case the

life assured dies during the policy tenure. If you are thinking whether the sum assured

and death benefit are one and the same, then do not be confused. Because the death

benefit can be sum assured or even higher than that, which may include rider benefit

(if any), and/or other benefits. Except in the case of term insurance – where there is no

accrued bonus or guaranteed additions.

11. Survival/Maturity Benefit:

Maturity benefit is the amount that the life insurance company pays when the life

assured outlives the policy tenure. Survival benefit is paid when the life assured

completes the pre-defined number of years under the policy. There is no survival or

maturity benefit in term plans. However, in other life insurance policies you may find

survival benefit or the maturity benefit paid under the plan.

12. Free-look Period:

It is applicable to all new life insurance policies purchased. Free-look period is a time

frame during which one may choose to return the purchased policy. If you are not

47
comfortable with the terms and conditions, you can return the policy within the Free-

look period. The insurance company after deducting the expenses incurred on medical

examination, stamp duty charges and other charges will refund the remaining

premium. IRDA specifies free-look period in life insurance is 15 or 30 days after

receiving the policy document.

13. Grace Period:

If you couldn’t pay the renewal premium for your policy on time, life insurance

company gives you an extension in the number of days after the premium payment

due date. A ‘Grace Period’ can be period of 15 days in case of monthly premium

payment mode, and 30 days in case of annual premium payment mode. If the

policyholder does not pay the premiums even before the end of grace period, the

policy gets lapsed.

14. Surrender Value:

If the policyholder decides to discontinue the plan before the maturity age, the life

insurance company pays an amount to the policyholder, this is called Surrender

Value. But you must clearly read the terms and conditions whether a plan offers any

surrender value or not. And if there is a surrender value, how much it will be. Not all

life insurance plans have surrender value.

15. Paid-up Value:

In case the policyholder discontinues to pay the premium after a specified period of

time, Insurance companies will offer the policyholder an option to convert his policy

into a reduced paid-up policy. Under this option the sum insured is reduced in

proportion to the number of premiums paid. If other benefits related to the sum

48
insured are payable, these benefits will now be related to the reduced sum insured,

which is the paid-up value.

16. Revival Period:

If the policyholder does not pay the premium even during the grace period, the policy

lapses.

However, if the policyholder still wants to continue, the insurance company provides

an option of re-activating the lapsed policy. This must be done within a specific

period of time after the grace period ends. This specified period is known as a revival

period. To reinstate the lapsed policy, the life insurance company will put forward the

request to the team of Underwriters (see #17 Underwriters) for approval.

17. Underwriters:

Underwriters evaluate the risk involved in insurance. The process of risk evaluation

starts before the issuance of insurance policy, and ends with settlement of the claim.

Only with the approval of Underwriters, policy is issued to the policyholder. And only

after clearance from the Underwriter, the company pays the claim benefit to the

nominee.

18. Tax benefits:

All the premiums paid towards the life insurance plan are eligible for deductions

under Section 80 (C) of Income Tax Act, 1961. The maximum amount that one can

claim as deductible is Rs.1.5 lakh. The benefits paid to the policyholder/nominee are

tax-free under Section 10 (10D) of Income Tax Act, 1961.

19. Exclusions:

49
Before you buy any life insurance, read ‘Exclusions’ carefully. These are things that

are not covered under a life insurance policy, and against which if claimed, insurance

company wouldn’t pay any benefit. For instance, Suicide is exclusion in any life

insurance plan.

20. Claim Process:

In case, the life assured passes away during the policy tenure, the nominee needs to

lodge a claim to receive the death benefit as mentioned in the policy.

21. Deductible:

The annual amount of money that you must pay out of pocket for medical expenses

before your insurance kicks in and starts to make payments.

50
Increasing Penetration And Density of Insurance Over The
Years
Insurance Penetration (Premiums as % of GDP)

3.7
3.4 3.5
3.5 3.3 0.9
0.7 0.8
0.7

2.5 2.7 2.7 2.8

2.6

2014 2015 2016 2017

Life Non-Life

Insurance Density (Premiums Per Capita) (US$)

80
73
70 18
59.7
55 54.7
13.2
50 11 11.5 55

46.5
40 44 43.2

30

20

2014 2015 2016 2017

Life Non-Life

51
▪ The overall market size of the insurance sector is expected to US$ 280

billion in 2020.

▪ At 3.69%, India ranked 41 in 2017 in terms of insurance penetration,

with life insurance penetration at 2.76% and non-life insurance

penetration at 0.93%.

▪ In terms of insurance density, India ranked 73 in 2017 with an overall

density at US$ 73.

52
Increasing Private Sector Activity In Life Insurance
Segment
Share of public and private sector in life insurance segment (%) FY03

2.00%

Public sector

98.00%

Share of public and private sector in life insurance segment (%) FY20

31.3%

Public sector

68.7%

▪ Over the years, share of private sector in life insurance segment grew from

around 2% in FY03 to over 31.3% in FY20.

53
LIC Continues To Dominate Life Insurance Segment

Premiums Market Share in First Year Life Insurance (FY20)

LIC
17.48%
HDFC Standard Life

6.35% SBI Life Insurance

52.78%
9.15% ICICI Prudential Life
Insurance

14.25% Others

• As of FY20, life insurance sector had 24 private players in comparison to only

four in FY02.

• With nearly 53% of the new business market share in FY20, Life Insurance

Corporation of India, the only public sector life insurer in the country,

continued to be the market leader.

• Among private sector lenders, HDFC Standard Life Insurance was leading in

new business premium with a market share of over 14%, followed by SBI Life

Insurance (~9%) and ICICI Prudential Life Insurance (~6%) in FY20.

54
Key Players in The Non-Life Insurance Segment

Market share of major companies in terms of Gross Direct Premium

collected (FY20)

New India

ICICI Lombard

14.6%
United India
7.1%
Total size:
47.5%
US$ 20.33 8.8% Oriental

billion 7.1%
National
7.1% 7.8%

Bajaj Allianz

Others

• There were 33 non-life insurers in India in FY20.

• Public sector insurers lead the non-life insurance market in India with New

India Assurance, United India Insurance and National Insurance having

market share of 14.6%, 8.8% and 7.8%, respectively, in FY20.

• In the private sector, ICICI Lombard was the leader in FY20 with a market

share of 7.1%, followed by Oriental at 7.1%.

• The public sector companies accounted for a cumulative share of about

45.30% of the total gross direct premium in the non-life insurance segment in

FY20.

55
• On July 09’2020, Union Cabinet approved capital infusion of Rs12,450 crore

(US$1.77billion), including Rs 2,500crore (US$354.66million) infused in

FY20, in three Public Sector General Insurance Companies-Oriental Insurance

Company Limited, National Insurance Company Limited (NICL), and United

India Insurance Company Limited.

56
NOTABLE TRENDS

Emergence of new distribution channels

• New distribution channels like banc assurance, online distribution and NBFCs

have widened their arch and reduced costs.

• Firms have tied up with local NGOs to target lucrative rural markets.

• Amazon India is also expected to enter the insurance market asanagent.

• In June 2020, HDFC Ergo tied up with tech firm Tropo go to offer commercial

drone owners and operators third-party liability cover for property damages

and physical injuries from flying machines.

Growing market share of private players

• In life insurance segment, private players had a market share of 31.3% in new

business in FY20.

• The market share of private sector companies in the non-life insurance market

rose from 15% in FY04 to almost 56% in FY21 (till April 2020).

• Launch of innovative products

• The life insurance sector has witnessed the launch of innovative products such

as Unit Linked Insurance Plans (ULIPs).

• Other traditional products have also been customized to meet specific needs of

Indian consumers.

• Mounting focus on EV over profitability.

• Large insurers continue to expand, focusing on cost rationalization and

aligning business models to realize reported Embedded Value (EV) and

generate value from future business rather than focus on present profits.

57
STRATEGIES

Cost optimization

• Players in the industry are investing in Information Technology to automate

various processes and cut costs without affecting service delivery. It is

estimated that digitization will reduce 15-20% of the total cost for life

insurance companies and 20-30% for non-life insurance companies.

• Starting October 2016, IRDAI has mandated having an E-insurance (electronic

insurance) account to purchase insurance policies.

Differentiation

• Companies are trying to differentiate themselves by providing wide range of

products with unique features. For example, New India Assurance launched

Farmers’ Package Insurance to covering farmer’s house, assets, cattle etc.

United India launched Workmen Medicare Policy to cover hospitalization

expenses arising out of accidents during and in the course of employment.

Focus
• Focus on providing one kind of service help insurance companies in

differentiation. For example, SBI is concentrating on individual regular

premium products as against single premium and group products.

58
Growth Drivers For Insurance In India

Competition

• Increasing number of insurance providers with various sophisticated products at

competitive prices.

• Regulations which are conducive for growth of the industry.

Innovation and efficiency

• Increase in potential insurance customers-individuals and companies across

different industries, small and medium enterprises, multinational companies.

• Expansion due of insurance universe due to professionalization of companies.

Growth in financial industry

• Overall growth in the financial industry-increasing working population with

higher disposable income.

• Increasing awareness about financial products including insurance.

Growth in specific segments

• Increase in micro insurance due to increased focus of Government on financial

inclusion.

• Increase in demand of motor insurance as a by-product of rapidly expanding

auto industry.

• Increase in health insurance due to focus on improvement in healthcare.

• Group insurance has also been a big driver of insurance growth in the country.

59
Flagship schemes released by the government

• The Government of India has released four flagship schemes under insurance:

• Pradhan Mantri Jan Suraksha Bima Yojana: This scheme focuses on providing

affordable insurance to people who are below the poverty line in rural areas.

• Pradhan Mantri Jeevan Jyoti Bima Yojana: This scheme provides life

insurance for people employed in the unorganized sector.

• Atal Pension Yojana: This guarantees pension coverage to all citizens (in the

unorganized sector) who join the National Pension System (NPS).

• Ayushman Bharat Yojana: Under this scheme, each beneficiary family will

receive medical insurance cover of Rs 5 lakh (US$6,712.3), which can be used

to get treatment at public or private hospitals.

Favourable Policy Measures Aid The Sector

Tax incentives

• Insurance products are covered under the exempt, exempt, exempt (EEE)

method of taxation. This translates to an effective tax benefit of approximately

30% on select investments (including life insurance premiums) every financial

year.

Union Budget 2020-21

• Fund of Rs 6,400 crore (US$ 887 million) has been allocated for 2020-21.

• Pradhan Mantri Jan Arogya Yojna (PMJAY) also known as Ayushman Bharat

Yojana is the world’s largest social health scheme and is expected to provide

coverage to around 50 crore people.

60
Life insurance companies allowed to go public

• IRDAI recently allowed life insurance companies that have completed 10

years of operations to raise capital through initial public offerings (IPOs).

Companies will be able to raise capital if they have embedded value of twice

the paid-up equity capital.

• SBI Life has already raised funds through its IPO.

Approval of increase in FDI limit and revival package

• Revival package by Government will help companies get faster product

clearances, tax incentives and ease in investment norms. FDI limit for

insurance company has been raised from 26% to 49%, providing safeguard

and ownership control to Indian owners.

• As per Union Budget2019-20,100% foreign direct investment (FDI) was

permitted for insurance intermediaries.

Rising Private Sector Investment In Insurance

• In January 2019, online insurance distribution platform, Turtlemint, raised

US$25 million in funding.

• True North, a private equity (PE) investor, acquired 51% stake in Max Bupa

Health Insurance Company for Rs 511crore (US$ 71.80million).

• Global insurance broker, Marsh, raised its shareholding in its Indian joint

venture to the maximum FDI limit of 49% from 26%.

• In December 2017, IRDAI allowed PE investors to become promoters in

unlisted insurance companies. The move is expected to enhance PE

investments in the sector.

61
• Most of the existing players are tying up with banks to expand their

distribution network.

• In April 2020, Axis Bank acquired an additional 29% stake in Max Life

Insurance.

• In August 2020, ICICI Lombard has agreed to acquire Bharti AXA General

Insurance. After its demerger, Bharti AXA General Insurance will cease to be

a concern a sits assets will be liquidated.

62
 OPPORTUNITIES

Low-income
urban and
pension
markets

Motor
Crop
insurance
Opportunities insurance
markets
for Indian
insurance
market

Health
Micro-
insurance
insurance
markets

Non-Life Insurers: Motor Insurance Markets

• Strong growth in the automotive industry over the next decade will be a key

driver of motor insurance. Automobiles sales in India increase data CAGR of

1.29% between FY16-FY20 with 21.55 million vehicles being sold in FY20.

• Proposed IRDAI draft envisages a 10-80% rise in premium rates for the

erstwhile loss-making third party motor insurance.

• In FY20, motor insurance constituted 36.60% of the non-life insurance market

in India.

63
Non-Life Insurers: Health Insurance Markets

• Only 1.5-2.0% of total healthcare expenditure in India is currently covered by

insurance providers.

• Only 18% of people in urban areas and 14% in rural areas are covered under

any kind of health insurance scheme.

• Gross direct premium from health insurance reached Rs 848.4 lakhs (US$ 1.21

billion) in FY20 (till May 2019) and contributed 30.2% to the gross direct

premiums of non-life insurance companies in India.

• Absence of a government-funded health insurance makes the market attractive

for private players. In August 2018, coverage of mental illness under health

policies was also mandated by the IRDAI.

• Introduction of health insurance portability expected to boost the orderly

growth of the health insurance sector.

• Private insurance coverage is estimated to grow by nearly 15% annually till

2020.

• Government-sponsored programmes are expected to provide coverage to

nearly 380 million people by 2020, driven by initiatives such as RSBY and

ESIC.

• RSBY is a centrally sponsored scheme to provide health insurance to below

poverty line (BPL) families and eleven other defined categories of

unorganized workers, namely building and other construction workers,

licensed railway porters, street vendors, and MGNREGA workers among

others.

64
Strong Potential in Crop Insurance

• Awareness about crop insurance in India is 38.8%, and still, crop insurance

market in India is the largest in the world.

• Over 53.8 million famers were benefitted under Pradhan Mantri Fasal Bima

Yojana (PMFBY) in FY20.

• To provide crop insurance to farmers, the Government has launched various

schemes like National Agriculture Insurance Scheme (NAIS), Modified

National Agriculture Insurance Scheme (MNAIS) and Weather-based Crop

Insurance Scheme (WBCIS).

• In September 2018, the Government increased the number of risks to be

covered in the Pradhan Mantri Fasal Bima Yojana (PMFBY) to empower

farmers in a better way. From now, farmers will be protected against

hailstorms, crop fires, damage from animals, landslides and rainstorms.

• In October 2020, the Andhra Pradesh rolled out free of cost crop insurance

scheme for the state farmers.

• In October 2020, the Reliance General Insurance and SatSure partnered to

launch the satellite-based crop monitoring and predictive analytics support for

better risk management and to improve efficiency of its crop insurance

business operations.

65
CHALLENGES

The insurance sector faces various challenges, Low insurance penetration and density

rates prevail in India. Rural participation of insurers remains deficient, and life

insurers, especially private ones, gravitate towards the urban population, to the

detriment of the rural population.

Insurers in India lack sufficient capital, and their financial health, particularly that of

the public-sector insurers, is in a precarious state. Among the public-sector general

insurers, the financial situation of the ailing National Insurance Company is a cause

for concern. Even though the Government of India has already infused Rs.25 billion

in the three public-sector insurers – National Insurance, Oriental Insurance, and

United India Insurance – through the first batch of 'supplementary demands for

grants' for FY20, these insurers require an additional Rs.100-120 billion in order to

meet the stipulated solvency margin.

The general insurance industry recorded a decrease in profits, with public-sector

general insurers posting losses, and their private-sector counterparts recording a slight

fall in profits in FY19, relative to FY18. While premiums are still growing, the

general insurance industry is experiencing underwriting losses, which increased by

45.5% for general insurers in FY19 compared to the previous year (IRDAI, 2019).

These might very well be early warning signals of the insurance sector succumbing to

the same malaise afflicting banks and NBFCs (non-banking financial companies) in

India.

Further, there are concerns in the non-life insurance sector regarding product

pricing and overcrowding in some segments, along with issues in the crop insurance

segment. To maintain profitability, insurance companies are becoming increasingly

66
dependent on their investment portfolio. They have also resorted to harmful practices,

for example, undercutting premiums. Other challenges, such as the predominance of

traditional distribution channels, also hinder the sector’s growth. Besides, insurers in

India are capital-starved. A possible additional effect of this low level of capital is

incipient new risks, and meagre capital makes it difficult for insurers to rise to the

challenge of new risks. Risks associated with the Covid-19 pandemic have recently

surfaced, creating further challenges for insurers.

KEY CHALLENGES AND OUTLOOK

1. Low penetration and density rates Low levels of penetration and density

of insurance in India clearly imply that a large section of the population is

still uninsured. A report by Lloyd’s (2018) points to an enormous insurance

gap of USD 27 billion in absolute terms in India.

2. Deficient rural participation and life insurers’ skewed focus on urban areas

In terms of rural penetration, the share of rural business in total volume of

insurance business is still low in India. Although it was expected that along

with the growth in insurance penetration and density, liberalization will spread

insurance to rural areas and social sectors via micro insurance, this has not

happened. It can be discerned that private life insurers are withdrawing from

the rural areas, as the number of their offices in that region has been falling in

recent years. On the other hand, their presence in urban areas is increasing.

The state-owned life insurer, LIC, has decreased the number of offices in

urban areas slightly from 2016 to 2019, while its presence in rural areas has

stayed constant.

67
3. Less investment by households in insurance products. An average Indian

household holds 77% of its total assets in real estate, 19.7% in other durable

goods, 20.11% in gold, and the residual 5% in financial assets (such as

deposits and savings accounts, publicly traded shares, mutual funds, life

insurance, and retirement accounts) (Household Finance Committee, 2017).

Counterparts in the advanced economies hold relatively more financial assets.

This meagre investment by households in insurance is substituted by non-

institutional debt, as it serves “as a high-cost, imperfect form of insurance”. A

striking finding in the Indian case is that there exists a strong negative

correlation between insurance activities and incidence of non-institutional

source of debt, which is indicative of the fact that households are mitigating

risks via ex-post high-cost borrowing as opposed to ex-ante insurance against

those risks (Household Finance Committee, 2017). This feeds into keeping the

penetration rates subdued and is itself driven by the low uptake of insurance.

4. Inadequate access to insurance products. In order to increase the

penetration rates and density, uninsured rural areas and the urban poor must be

brought under the ambit of insurance coverage. Improving accessibility of

insurance products will be of prime importance in this regard. Accessibility of

insurance products is related to affordability and comprehension of the

product. A complementary thrust will have to be put in by the authorities to

build trust and spread awareness and improve financial literacy.

5. Deteriorating financial health of insurers. Life insurance industry has

reported a marginal fall in profits from last fiscal, as the profits fell to

Rs.8,435.81 crore in 2018-19 from Rs.8,511.99 crore in 2017-18 (IRDAI,

2019c). While LIC garnered a slight increase in profit, private sector insurers’
68
profits marginally fell. However, exposure to downgraded debt instruments,

swelling non-performing assets (NPAs), and falling investment yield are some

of the factors stalking LIC’s financial picture. The NPAs of LIC stood at 6.10

per cent for the period April-September 2019 according to its public

disclosure. LIC has also recently increased the provisions for doubtful assets

by 30 per cent.21 Further, LIC has exposure to the debt instruments that have

been downgraded to default category by credit across platforms such as life

funds, pension funds, and unit-linked funds. Adding to the worrisome

financial landscape is LIC’s falling investment yield, which plunged to 7.59

per cent in 2018-19 from 7.71 per cent in the previous year as per LIC’s public

disclosure. Given that LIC commands a large share of the life insurance

market, the wobbly finances of the state insurer can cast a pall over the

financial soundness of the entire sector. The general insurance industry

recorded a decrease in profits, with public sector general insurers posting

losses and their private sector counterparts recording a slight fall in profits in

2018-19 as compared to 2017-18. While the premiums are still growing, the

general insurance industry is experiencing underwriting losses. The

underwriting losses of general insurers increased by 45.49 per cent in FY19 as

compared to the previous year (IRDAI, 2019c). Among the public sector

general insurers, the financial situation of the ailing National Insurance

Company is cause for concern. The insurer has failed to meet the solvency

requirement of a surplus of 1.5 times the liabilities at all times. As noted by

the IMF’s technical note on India’s insurance sector regulation and

supervision, the weakest insurers that are not meeting minimum solvency

requirements are the ones that are state-owned. This requires IRDAI to

69
 concentrate resources on ensuring that these companies maintain adequate

solvency levels (IMF, 2018). Even though the Government of India has

already infused Rs 2,500 crore in the three insurers, National Insurance,

Oriental Insurance, and United India Insurance, still these insurers require an

additional Rs.10,000-12,000 crore in order to meet the stipulated solvency

margin. This injection will aid their faltering finances, along with facilitating

the announced merger. These signs might very well be early warning signals

of the insurance sector succumbing to the same malaise that surrounds banks

and NBFCs in India. A move towards economic valuation for financial

statements will aid in the implementation of International Financial Reporting

Standards (IFRS) from the financial year 2020-21, where India is an outlier,

having not moved in this direction (IMF, 2018). IMF has recommended the

formulation of a strategy, plan, and timetable as soon as possible for

modernizing the solvency framework (IMF, 2018).

6. Public sector dominance and depressed private participation. The

dominant position of state owned insurers in the insurance sector is proving to

be a cause for concern for private sector insurers as well as foreign insurers.

Private sector insurers are stepping up their performance and with the right

amount of push (in terms of easing the regulatory issues in the insurance

industry), they can do better.

7. Lack of capital by its very nature, insurance is a capital consuming financial

service and growing insurance companies require on-tap capital. Insurers in

India are capital starved. Some insurers are situated at the extreme end and are

struggling to meet even their solvency requirement. Adding to this, the RBI’s

move to place a ceiling on banks’ holdings in insurance companies at 30 per

70
 cent for bolstering credit growth and shield banks from non-bank risks is

going to deprive insurers of crucial banks’ capital and will also affect its

distribution via banks. National Insurance Company, Oriental Insurance

Company, and United India Insurance Company are unable to meet their

solvency margin due to inadequate capital. level of capital is incipient new

risks, and meager capital makes it difficult for insurers to rise to the challenge

of new risks.

8. Regulation and supervision ensuring that the Indian insurance industry is well-

capitalised and synchronised with the prevailing global standards of capital

forms an important aspect of regulating the sector. The risk-based capital

(RBC) framework is harmonised with global standards of insurance capital

and is more responsive to risks (Chen and Fishbaum, 2019). Chen and

Fishbaum (2019) state that while a majority of the Asian countries have

moved to a risk-based capital regime for insurance, the capital regime in

India is still a laggard in this process. To upgrade its solvency structure, the

IRDAI in 2017 launched a report on the RBC approach and market consistent

valuation of liabilities (Chen and Fishbaum, 2019). However, before such a

shift is implemented, there are a few considerations to be taken into account.

Prior to the implementation of the said capital standard, the precarious state of

public sector general insurers’ finances should be tackled (Chen and

Fishbaum, 2019). Moreover, since India is moving in the direction of

enforcing IFRS 17 and the migration to a new capital regime will require

considerable resources, the best way to move ahead needs to be thought

through (Chen and Fishbaum, 2019). Furthermore, Chen and Fishbaum (2019)

indicate that the new regime should find the right mix between the growth of

71
 the insurance industry and safeguarding the policyholders’ interests. Another

area that necessitates regulatory scrutiny is that of application of technology in

insurance. According to the OECD (2017), “The insurance sector is no

exception to such developments, with possibilities of new methods of service

provision as well as greater opportunities for data collection and fraud

detection that can lead to better risk identification and mitigation measures,

which are being referred to as “InsurTech”.

9. Issues pertaining to crop insurance. Although declining in importance,

agriculture is still the primary sector of the Indian economy and agricultural

production is heavily dependent on external factors such as climate. Given the

global deterioration of climate, the variation in agriculture performance will

only increase in future. Unfortunately, climatic disasters are on the rise in

India. India ranks very high in the vulnerability index. Based on weather-

related loss events in 2017 and 1998 to 2017, India’s rank is 14 among 181

countries (Eckstein et al., 2018). All these factors warrant that the success of

the insurance sector will be a key factor if India wants to fulfill its vision of

growth. Given the special nature of the sector, any kind of agriculture

insurance does not just support the farming community against weather and

climate related risks; it also protects the national economy through forward

and backward linkages. Indian agriculture is subject to weather conditions and

natural disasters. In India, the government supports public sector insurance

companies by: a) bearing fully or partly the cost of administration; b) sharing a

part of the indemnity, or paying a part of the premium to enable the farmers to

buy insurance (Raju and Chand, 2008). There are doubts among experts

regarding the co-existence of state-supported public insurers and private

72
 agriculture insurance. Given the high level of subsidies and the state-

monopolised administrative machinery, some fear that the private sector will

be unable to compete with government insurance. Another view is that private

insurance companies will be more effective than their public counterparts,

with better and updated design, superior services, and a market-linked pricing

framework, which will bring down the huge burden of subsidy in Indian

agriculture. For a well-regulated and efficiently run insurance sector,

coexistence of public and private agencies is necessary.

10. OTHER CHALLENGES

• Low investment by insurers in bonds and mortgage-backed securities one of

the channels via which insurers stimulate growth is investments. They invest

in government and corporate bonds through which they become an important

source of finance to both these entities. The investment in corporate bonds by

insurance companies and mutual funds in India is constrained by the

prudential norms of investment, which stipulate that a maximum of 25 per

cent of their portfolio is to be invested in bonds that are rated less than 26

‘AA’ (Ganguly, 2019). A large part of the investments of life insurers, general

insurers, health insurers, and reinsurers in India is directed towards central and

state government securities. Another investment avenue for the insurers is

mortgage-backed securities. This avenue allows these institutional investors

with longer maturity liabilities to invest in mortgage loans. Partaking of other

capital pools, such as mutual funds, insurance, pension funds, and individuals,

is very insignificant in securitization, especially mortgage-backed

securitization, wherein there is effectively no participation from the non-bank

73
 capital pools (RBI, 2019). Mortgage-backed securities are a component of

secondary mortgage markets in particular and mortgage markets in general.

Mortgage loans account for a low share28 of Indian households’ total

liabilities, whereas they are the largest liability of households in China, the

US, the UK, and Australia (Household Finance Committee, 2017).29

Moreover, mortgage penetration in Indian households is found to increase in

tandem with the households’ age, being very low in initial life even with high

real estate holdings (Household Finance Committee, 2017).

• Prevalence of traditional distribution channels Diversity in distribution is seen

of late, but the traditional distribution channels continue to prevail. New

channels, including online and point of sales, are being developed with the

support of regulations and guidelines introduced by the IRDAI; their market

share is, however, insignificant (IMF, 2018). Enhancing distribution channels

holds the key to unlocking growth in penetration and density rates in the

Indian insurance sector. India’s insurance sector has the potential to grow

further due to the underpenetrated nature of the market and low density.

Demographic factors, coupled with increasing awareness and financial

literacy, are likely to catalyse the growth of the sector. An enhanced regulatory

regime that focuses on increasing insurance coverage will also help. In order

to assist the development of the insurance sector in a more sustainable manner,

an increasingly market-based environment will help in the medium term (IMF,

2017). The IRDAI should also review parts of its cross-border supervision,

including its approach to Indian insurers with significant foreign operations

(IMF, 2018). The market for speciality risks such as natural catastrophes and

cyber-related risks is largely underdeveloped. Though there is interest in

74
underwriting cyber-related risks, the business is narrow as of now (IMF,

2018). Flood risk in India is quite pronounced and the frequency of weather

events is increasing (IMF, 2018). The issue of poor drainage, among other

things, is aggravating the situation (IMF, 2018). Insurance against catastrophes

is very shallow in India. Insurance companies bore less than 10 per cent of the

actual losses during the Kerala floods which were among the major global

disaster events of 2018 (Ray et al., 2019). This necessitates an increasing role

to be played by Indian insurance companies in adoption of alternate capital 28

Only 23 per cent of total liabilities are accounted for by mortgage loans in

spite of the notable role of nonfinancial assets in the balance sheet of an Indian

household (Household Finance Committee, 2017). 29 Nearly 60 per cent of

the total debt exposure is accounted for by mortgage holdings for the average

household in these countries (Household Finance Committee, 2017). 27 and

insurance-linked securities such as catastrophe bonds. An area of concern that

arises here is the ability of insurers to efficiently price these risks. With the

onset of new risks, new risk assessment models will also be need to be thought

through, so as to best capitalise upon these opportunities.

75
 CHAPTER-4
LITERATURE REVIEW

76
1. According to Dr. Srivastava.A, Dr. Tripathi.A & Dr. Kumar.A (Apr-2012)

Insurance industry contributes to the financial sector of an economy and also

provides an important social security net in developing countries. The growth

of the insurance sector in India has been phenomenal. The insurance industry

has undergone a massive change over the last few years and the

metamorphosis has been noteworthy. There are numerous private and

government insurance companies in India that have become synonymous with

the term insurance over the years. Offering a diversified product portfolio and

excellent services the many insurance companies in India have managed to

make their way into almost every Indian household.

2. According to Dr. Ahmed.A (Jan-2013) research has revealed that there is a

wide gap between the aspirations of executives to innovate and their ability to

execute, especially when it comes to strategic innovation. In particular,

established life insurance firms find it difficult to translate their innovation

ambitions into successful projects and new businesses. Nevertheless, some

financial institutions have changed the rules of the game in the Insurance

industry. This paper begins with an overview of innovation and why it is

important. Innovation impacts every business sector today and financial

services are no different. But is it easy to create the right environment to

promote innovation? Research and development should be one of the top

sources for generating innovation yet studies show that in the life insurance

industry it is relatively low. Our conclusion is that responsive or strategic

innovation requires a strategic commitment and the adoption of particular

management processes and systems to create, nurture, and develop new

businesses. Managers should be aware of the threats and opportunities

77
 associated with strategic innovation before they ask the organization to engage

in innovation.

3. According to Arif.M (Feb-2015) The sector witnesses a multi-fold growth in

terms of insurance density (4 fold), amount of investment (5 fold), total

premium (4 fold), number of new policy issued (doubled), number of offices

opened (4 times) etc. Even a tremendous growth in life insurance industry,

there are still a large portion of population who are remain uninsured. It

demonstrates the lot of opportunities. But in last few years, the performance of

life insurance industry has been shown a downfall (decreasing trends) because

of slow economic growth rate, higher inflation, global crises, low saving etc.

So, life insurers required to change their strategies and offered customized

product so that the untapped market can be served effectively.

4. According to Nagaraja.B (Mar-2015) The claims settlement ratio, one of key

indicator for measuring the operational efficiency of insurance industry shows

that LIC has fared well in terms of high settlement ratio of individual and

group death claims, compared to the private insurers. In the case of non-life

insurers, the performance of public sector was seen as almost stagnant

registering a marginal increase in the year 2013-14 compared to 2004-05. All

these aspects are to be taken care for the healthy growth of the insurance

industry in India. If the insurance industry wants to remain cost competitive,

both life insurers and non-life insurers have to improve their distribution

techniques and develop products to change customer behavior.

5. According to Jain.A (2015) The insurance industry has undergone through

enormous changes over the last few years. Innovative plans with

modernization are the outcome of such changes. There are numerous private

78
 and government insurance companies in India Offering a varied product

portfolio and excellent services and are able to managed their way into almost

every Indian household.

6. According to Kumar.D.S & Dr. Kanti.P.T (July-2017) Indian economy and

industry has undergone significant transformation since 1991-moving away

from state controlled to a competitive market economy. The most remarkable

of this transformation has been noted in the financial sector, particularly, in the

Indian Insurance Industry which has opened up to all competitors-integrating

financial services to the global economy. IRDA was established in 1999 to

protect the interest of policyholders for promoting and ensuring orderly

growth of the insurance industry and for matters connected therewith and also

to amend the Insurance Act 1938, LIC Act 1956 and G.I. Business Act 1972.

Under IRDA Act, 1999, Indian Insurance company means, any insurer being a

company which is formed and registered under the companies Act, 1956, in

which the aggregate holding of equity shares by a foreign company do not

exceed 26% paid up equity capital of such Indian Insurance company and

whose sole purpose is to carry on life or general or re-insurance business.

Enhancement of this 26% to 49% is at higher level discussion stage. FDI

cannot be viewed from the financial perspective alone. It brings experience

sharing, technology up gradation, specialized skills, better operational

efficiency, improved perceptions by reinsurance companies, and faster

evolution of industry.

7. According to Ray.S, Thakur.V & Bandyopadhyay.K (July-2020) low

penetration and density rates, less investment in insurance products, the

dominant position of public sector insurers and their deteriorating financial

79
 health are some of the challenges facing the sector. Since India’s economic

growth depends on how shock-absorbent India’s economy is, addressing these

challenges assumes importance for developing a sound insurance sector.

8. According to Dr. Ramasamy.K (Aug-2020) COVID-19 affects various

industries and economies across the globe. India is one of the countries

severely affected and in 3rd place globally. BFSI sector, which is one of the

cores for the Indian economy, also affected poorly due to COVID-19. In this

paper, we discuss various factors such as lockdown approach, moratorium,

different impacts in banking, financial services and insurance sector. Further,

we have given some recommendations to mitigate the situation so that the

financial services can continue with the less negative impact which will help

for better services to the customer and minimal revenue loss to the financial

organisations.

9. According to Mr. Loganathan.M.S & Ms. Selvi.D.T (Aug-2020) Insurance

sector plays an important role in the financial sector of a country. The

marketing strategy should be laid out in such a manner that it includes the

requirement from the launching policy till the final stage when it reaches in

the hand of customer; means the service provided to the policy holders or the

end users. It should be planned accordingly, suiting the Indian society, because

it is a diversified one from high income group of the low one. The new

entrants in the insurance business sector should take pains and understand

peoples demand and needs and transform their policies as per their choices.

They should be designed to provide the facilities to customers as to give the

customers full reliance and satisfaction.

80
 CHAPTER-5
RESEARCH
METHODOLOGY

81
5.1 SIP TOPIC: To Study the Challenges, Opportunities & Trends Prevailing in

Insurance Industry in India.

5.2 RESEARCH OBJECTIVE:

1. To study the insurance industry.

2. To determine the challenges, opportunities & trends prevailing in insurance

industry.

3. To determine the impact of covid-19 on insurance industry.

5.3 RESEARCH DESIGN:

Type of research -Exploratory Research

Exploratory research is the process of investigating a problem that has not been

studied or thoroughly investigated in the past. Exploratory type of research is usually

conducted to have a better understanding of the existing problem, but usually doesn't

lead to a conclusive result.

Study on the industry: Insurance Industry

Type of Data- Secondary Data

Secondary research is a research method that involves using already existing data.

Existing data is summarized and collated to increase the overall effectiveness of

research. Secondary research includes research material published in research reports

and similar documents. Sources of Secondary Data are:

• Magazine

• Internet

• Newspaper

82
CHAPTER-6

83
 6.1 SUMMARY OF FINDINGS

❖ The life insurance sector dominates the insurance market in India with a huge

share of 74.7%, whereas non-life insurance accounts for the remaining 25.3 %

(IRDAI, 2018).

❖ Indian insurance industry comprises of mere 2% of the global insurance

market in 2017.

❖ Out of all key players LIC continues to dominate life insurance segment in the

Indian insurance industry.

❖ Public sector dominates the private players somehow due the advantages given

by government.

❖ The central government’s move to extend the Ayushman Bharat Pradhan

Mantri Jan Arogya Yojana (PMJAY) to migrant workers amidst India’s battle

with the COVID-19 pandemic is likely to enhance the non-life insurance

penetration in India and also improve awareness and perception of insurance

products among the uninsured and isolated segments of the population.

❖ Before the outbreak of COVID-19 in India, only meager 10% of people

showed interest in purchasing insurance to cover medical emergencies,

including pandemics and infectious diseases. Now, however, 71% of people

consider it a necessity.

❖ Due to the Covid-19 pandemic, the life insurance industry has become more

technologically advanced and customer-oriented with better operational

performance and efficiency.

84
❖ During pandemic, two productive months for the Indian insurance industry

i.e., March for life insurance and April for non-life corporate renewals—have

been hit by around 30% and 15%, respectively.

❖ In the private sector, ICICI Lombard was the leader in FY20 with a market

share of 7.1%, followed by Oriental at 7.1%.

❖ The market share of private sector companies in the non-life insurance market

rose from 15% in FY04 to almost 56% in FY21 (till April 2020).

❖ Pradhan Mantri Jan Arogya Yojna (PMJAY) also known as Ayushman Bharat

Yojana is the world’s largest social health scheme and is expected to provide

coverage to around 50 crore people.

❖ Only 18% of people in urban areas and 14% in rural areas are covered under

any kind of health insurance scheme.

❖ India is the largest crop insurance market in the world.

❖ Government of India has already infused Rs.25 billion in the three public-

sector insurers – National Insurance, Oriental Insurance, and United India

Insurance – through the first batch of 'supplementary demands for grants' for

FY20, these insurers require an additional Rs.100-120 billion in order to meet

the stipulated solvency margin.

❖ Amid the coronavirus, outbreak health insurance providers notice a marked

jump in medical coverage related inquiries, with 30% to 40% more customers

seeking coverage against the COVID-19 virus.

85
 6.2 SUGGESTIONS AND RECOMMENDATIONS

❖ India needs to increase their potential to compete globally.

❖ To harness the potential of the insurance sector as a driving force of economic

growth in India, these low penetration rates will have to be dealt with.

❖ There is huge potential for the development of the life insurance market in

rural areas, as it is still underdeveloped.

❖ Insurance companies in India will have to show long-term commitment to the

rural sector as well, and will have to design products which are suitable for

rural people.

❖ Insurance companies need to think about their distribution mechanism to work

effectively in rural markets.

❖ Improving accessibility of insurance products.

❖ To reduce the dominance of the public sector entities, a host of measures can

be introduced to diminish the advantages offered to the public sector insurers.

❖ The issue of low capital levels throughout the insurance sector in India needs

to be addressed.

❖ Proper strategies and plans are required to allocate the budget to meet the

stipulated solvency margin.

86
 6.3 CONCLUSION

Insurance is a means of protection from financial loss and can be considered as a risk

management. In this report the evolution, growth of India’s insurance sector, impact

of covid-19 and the challenges that have hampered its development has been

discussed. Although India’s insurance penetration and density are low compared to

advanced countries in both the life and non-life insurance sectors, in recent years they

are showing a slow but steady growing trend. The industry has experienced a sea

change in the last couple of years, wherein it has been shaped in large part by the

nationalization of life and non-life sectors, the constitution of Insurance Regulatory

and Development Authority (IRDA), opening up of the sector for both private and

foreign players, and increase in the foreign investment cap to 49%. The sector has

transitioned from being an exclusive state monopoly to a competitive market. Pradhan

Mantri Jan Arogya Yojna (PMJAY) also known as Ayushman Bharat Yojana is the

world’s largest social health scheme and is expected to provide coverage to around 50

crore people. Even after implementing a range of reform measures, the Indian

insurance sector still has a long way to go in order to be comparable to other advanced

economies’ insurance sectors as still Indian insurance industry comprises of mere 2%

of the global insurance market as per reports of 2017 therefore India’s share in the

global insurance market is extremely low. For increasing its share globally, the

underlying challenges will have to be addressed. With the recent outbreak of

coronavirus, an increasing number of people have become more aware of insurance.

71% people consider insurance as a necessity to be ready in case of any other

unforeseen circumstances in the future. According to policy bazaar, amid the

coronavirus, outbreak health insurance providers notice a marked jump in medical

coverage related inquiries, with 30% to 40% more customers seeking coverage

87
against the COVID-19 virus. It can be well established that moving ahead the

insurance industry must learn from the past and choose solutions with a preference

for a pragmatic and fast approach rather than looking for perfect solutions to meet

the future industry challenges. Industry experts should also facilitate building a

robust and resilient frame of operations as insurers begin adapting to the new

normal. India’s economic growth depends on how shock-absorbent India’s economy

is. Both financial and climatic shocks (which are on the rise, given climate change)

are important for India and having an efficient and stable insurance market in place

will determine India’s growth performance in both the short and long terms.

88
 6.4 LIMITATIONS

❖ Research is based on secondary data hence information may not be accurate.

❖ Secondary data can be general and vague and may not really help to

understand facts in detail.

❖ The data collected maybe out of date.

❖ The study was limited to Indian Insurance Industry.

❖ Limited time was given for conducting the research.

89
BIBLIOGRAPHY

90
Websites

➢ https://www.acko.com/articles/general-info/insurance-sector-india/

➢ https://www.ibef.org/industry/insurance-sector-

india.aspx#:~:text=The%20insurance%20industry%20of%20India,the%20non

-life%20insurance%20segment.

➢ https://www.irdai.gov.in/ADMINCMS/cms/NormalData_Layout.aspx?page=P

ageNo4&mid=2

➢ https://www.outlookindia.com/outlookmoney/insurance/5-recent-

developments-in-the-life-insurance-industry-2902

➢ http://www.businessworld.in/article/New-Trends-Emerge-in-Life-Insurance-

Industry/20-08-2020-310971/

➢ https://www.policyholder.gov.in/What_We_Do.aspx

➢ https://en.wikipedia.org/wiki/Insurance_Regulatory_and_Development_Autho

rity

➢ https://www.godigit.com/guides/types-of-insurance

➢ https://www.coverfox.com/life-insurance/articles/life-insurance-terms/

➢ https://www.indiainfoline.com/article/general-blog/how-the-corona-pandemic-

has-impacted-the-indian-insurance-sector-120110900096_1.html

➢ https://www.aegonlife.com/insurance-investment-knowledge/covid-19-

impact-on-insurance/

➢ https://www.pwc.in/assets/pdfs/services/crisis-management/covid-19/covid-

19-impact-on-the-indian-insurance-industry.pdf

➢ https://www.policybazaar.com/general-insurance/articles/impact-of-

coronavirus-on-life-and-health-insurance-sector/

91
Research Papers

➢ SELVI, M. D. T. (2018). Opportunities and Challenges in Insurance Industry.

International Journal of Emerging Technologies and Innovative Research,

ISSN, 2349-5162.

➢ Ramasamy, D. (2020). Impact Analysis in Banking, Insurance and Financial

services industry due to COVID-19 Pandemic. Pramana Research Journal,

10(8).

➢ Srivastava, A., & Tripathi, S. (2012). Indian life insurance industry-The

changing trends. Researchers World, 3(2), 93.

➢ Arif, M. (2015). Life insurance industries in India: Trends and patterns.

European Academic Research, 2(11), 14105-2015.

➢ Jain, A. Changing Trends of Insurance Industry in India: Special Reference to

Life Insurance Sector.

➢ Ahmed, A. (2013). Receptive Development The Life Insurance Industry in

India “Trends and Challenges”. Journal of Business Management & Social

Sciences Research, 2(1), 51-54.

➢ Dash, S. K., & Pany, T. K. (2013). Insurance industry in India-Prospects and

challenges. Asian Journal of Multidimensional Research (AJMR), 2(4), 46-64.

➢ Nagaraja, B. (2015). Performance of Insurance Industry in India: A Critical

Analysis. International Journal of Multidisciplinary and Scientific Emerging

Research, 4(1), 1045-1052.

➢ https://think-

asia.org/bitstream/handle/11540/12245/Working_Paper_394.pdf?sequence=1

92
93