Content Insurance introduction Privatization in insurane Types of insurance Growing up insurance sector Major driving factord Top players

of insurance sector Insurance & salary Challenges & opportunity Causes

Insurance introduction Insurance = protectiuon against risk 1 insurance is co-operative devise of distributing losses, Falling on a individual or family over a large number of person, each bearing a normal expenditure & feeling secured against heavy loss. 2 insurance business has emerged as of the prominent financial services during recent times, particularly in developing countries where it not grow before globalization. But it is very difficult to trace exactly when insurance originated.
Insurance has always been a politically sensitive subject in India. After 40 years of government ... Within less than 10 years of independence, the Indian government nationalized private insurance companies in 1956 to bring this vital sector under government control to raise much needed development funds. Since then, Since then, state-owned insurance companies have grown into monoliths, lumbering and often inefficient but the only alternative. They have been criticized for their huge bureaucracies, but still have millions of policy holders as there is no alternative.

PRIVATIZATION IN INSURANCE

The Narasimha Rao government (1991-96) which unleashed liberal changesin India's rigid economic structure could not handle this political hot potato.Ironically, it is the coalition government in power today which has declaredits intention of opening up insurance to the private sector. Ironical becausethis government is at the mercy of support from the left groups which havebeen the most vociferous opponents of any such move. I All segments of the financial sector had been opened to private players with BETTER PRODUCT,SERVICES & SOCIAL OBJECTIVE
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International players are eyeing the vast are already making plans to come in.

potential of the Indian market and

TYPES OF INSURANCE
Privatization has brought in lot of surprises for insurance sector. In India, insurance sector is at the booming stage as only 40% of the population is insured. Private organizations are striving hard and hard to develop the sector. Government is also supporting the insurance sector to increase the Gross Domestic Product ratio from the sector which is now about 1.4% only

1) Accidental insuranc 2) medical insurance 3) auto insurance 4) medi claim 5) diabetes insurance

6) family health ins 7) dental ins 8) other various types of policies

GROWN UP INSURANCE SECTOR The insurance industry has grown by 83% since the opening up of the sector. -C S Rao, Chairman (INDRA) Insurance premium income has risen to Rs 82415 crore in 2003-04, against 45000crore in 2000-01. Premium income in life insurance sector to rise further by 15-16% & nonlife insurance premium by 14% in 2005-06. The health insurance sector is expected to grow by 10-15%. Foreign direct investment is increased to 49% from the current 26 %, the industry can expect greator entry of players.
Indian insurance sector is likely to register unprecedented growth of 200% and attain a size of Rs. 2000 billion ($51.2 billion) by 2009-10, in which a private sector insurance business will achieve a growth rate of 140% as a result of aggressive marketing technique being adopted by them against 35-40% growth rate of state owned insurance companies.

on account of intense marketing strategies adopted by private insurance players, the market share of state owned insurance companies like GIC, LIC and others have already come down to 70% in last 4-5 years from over 97%. The private insurance players despite the sector is still regulated has been offering rate of return (RoR) to its policy holders which is estimated at about 35% as against 20% of domestic insurance companies. LIC and GIC have limited number of policies to offer to their subscribers while in case of private insurance companies, their policy numbers are many more & the premium amount as well as the maturity period is much competitive as against those of government insurance companies. .
The Chamber has projected that in rural markets, the share of private insurance players would increase substantially as these have been able to generate a faith among their rural consumers.

GROWTH OF TOP 10 PVT INS COMPANIES OF INDIA

ICICI Prudential Life Insurance Co. Ltd IS THE BIGGEST PRIVATE LIFE INSURANCE COMPANY in INDIA. IT EXPEREINCE growth of 58%. Bajaj Allianz Life Insurance Co Ltd has reported a growth of 52% and its market share went up to 6.98% in 2007-08 form 5.66% in 2006-07. SBI Life Insurance Co Ltd in terms of new number of policies sold, the company ranked 6th in 2007-08. Its growth is 87% over last year. Reliance Life Insurance Co Ltd Total collected was Rs 2792.76 crore and its market share went up to 2.96% from 1.23% a year back. HDFC Standard Life Insurance Co Ltd with an income of Rs 2680 crore in FY2007-08, registering a year-on-year growth of 64%. Birla Sun Life Insurance Co Ltd market share of the company increased from 1.22 % to 2.11% in 2007-08. The company moved to the 7th position in 2007-08.

Max Newyork Life Insurance Co Ltd has reported growth of 73% in 200708. Total new business generated was Rs 641.83 cror as against Rs.387.51crore.
Kotak Mahindra Old Mutual Life Insurance Ltd the fiscal 2007-08, the company reported growth of 80%, moving from the 11th position to 9th. It captured a market share of 1.19% in 2007-08. Aviva Life Insurance Company India Ltd ranking dropped to 10th in 2007-08 from 9th last year. It has presence in more than 3000 locations across India via 221 branches and close to 40 bancassurance partnership.

MORE DRIVING FACTOR. Growing demand from semi-urban population .. . Rising demand forretirement provision in the ageing population. => The opening of the pension sector and the establishment of the new pension regulator. => Rising per capita incomes among the strong middle class, and SPREADING AFFLUENCE. Public pvt partnership infrastructure development. growing consumer class & increase in spending & saving capacity.

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