Presented To, Presented By,

Prof., Abhishek Parikh Unnatti lad ( 08 )

Dipika Oza (64)
Bhumi Patel (68)
Tanay Shah ( 84 )
V.M.Patel Institute of Management
Ganpat University,
Kherva.
 Definition of Insurance
 “Insurance is a contractual agreement whereby one party called
insurer or the insurance company, undertakes to compensate
the other party called insured, for any loss or damage suffered
by the later, in consideration of payment of ‘premium’ for a
certain period of time, is known as insurance.”

 In the liberalization era the Indian Insurance Industry has

witnessed exceptional growth with participation of both public
and private sectors players.

 There are many public and private players both in the field of
life and non-life insurance business.
Entry & Eligibility for insurance career
To pursue a career in the insurance industry, one has to pass the entrance
examination conducted by the Actuarial Society of India, Mumbai.

Students who have passed 10 + 2 or equivalent exam are eligible.

License is needed to work in this field which can be achieved through a

training programme.

Insurance Institute of India conducts Licentiate, Associate ship and

Fellowship plus other training programmes for insurance services.
Cont’d…
A person who wants to be an actuary has to pass an entrance
exam conducted by the Actuarial Society of India.

However, recruitment to the Postal Life Insurance takes place

according to the recruitment rules of the postal department.

To be an insurance surveyor, a person needs to hold a license.

Private insurance firms take in management graduates to work

mainly in the areas of marketing and sales.
The path of making carrier in Insurance
Industry
Area of making carrier in Insurance Industry
● There are a number of options to choose from for a career in
Insurance.
# Actuaries
# Underwriter
# Surveyor
# Investment
# Marketing & Distribution
# Third Party administrator
# Insurance investigation and fraud detection
Learning Grounds
♦ Following institutes offer specialized training and courses in
the areas of Insurance and Reinsurance:

# Insurance Institute of India

# National Insurance Academy, Pune
# Actuarial Society of India
Colleges In India
Education In Abroad
Imperial College London: Tanaka Business School

Tilburg University

Georgia State University – Netherlands

Career opportunities in Insurance Sector
● The globalization of the Indian economy and opening up of
the insurance sector has opened new doors to private
competition and the new and improved insurance sector today
promises several new job opportunities.

● With private players now in the field, there will be innovative

products, better packaging, improved customer service, and,
most importantly, greater employment opportunities.

● The Insurance sector not only provide protective shield to the

lives and assets of the nation but generate thousands of jobs
and career opportunities for India.
 Life insurance industry grows 49% New Delhi June 14, 2007

 life insurance industry - 49 % growth in new businesses,

 general insurance players - 16 % increase in April,

 Life Insurance Corporation, ICICI Prudential and SBI Life & 16 other players

 Country’s largest life insurer – LIC saw new premiums grow 57 % to Rs 2,134
crore in April by selling 15,89,684 policies against Rs 1,355 crore last year. It had
a market share of 71.56 % in April.

 life insurers - Bajaj Allianz, ING Vysya Life & Reliance Life saw a decline in
premium collections.
 ICICI Prudential - premium income rising 84.5 % to Rs 271 crore - 9.08% market
share.

 Bajaj Allianz - 15 % in business - collected Rs 124 crore - 4.16 % market share.

 general insurance industry grew 16 % in April,

 New India - With 8 % growth in premium collection at Rs 651 crore, retained its
number one slot by cornering 20.72 % of market share.

 ICICI Lombard - new premium 36 % to Rs 448 crore - a market share of 14.28 %

 ICICI Lombard - the second-largest non-life insurance player.

 Oriental Insurance premium collection at Rs 413 crore & a market of 13.16 %.  

 United India - 3 % growth in business at Rs 407 crore & 12.97 % of the market.
 “Indian Insurance Industry: New Avenues for Growth 2012”,

 The potential of the Indian insurance industry is huge. HOW???

 ….. It has an annual growth rate of 15-20% &
 …..the largest number of life insurance policies in force.

 Total value of the Indian insurance market (2004-05) is at Rs. 450 billion
(US$10 billion).

 Insurance & Banking Services’ contribution to the country's gross domestic

product (GDP) is 7%

 The funds available with the state-owned Life Insurance Corporation (LIC) for
investments are 8% of GDP.
 “A foreign partner can hold 26% equity in an insurance company, but there was a
proposal to increase this limit to 49%.

 Foreign investments of Rs. 8.7 billion have poured into the Indian market & 21
private companies have been granted licenses.
Top 10 Players in Insurance sector
Life Insurance corporation of India
Bajaj Allianz General Insurance
ICICI Prudential Life Insurance
ICICI Lombard General Insurance
Birla Sun life Insurance
Tata AIG General Insurance
New India Assurance Co.
Iffco-Tokyo General Insurance
Oriental Insurance Co.
HDFC Standard Life Insurance
 Job Prospects in Insurance sector in India
Insurance is the new sunrise industry and a large number of openings
are generally available. A plain graduate in the area of marketing and
sales an expect anything between 8000/- to 15000/- per month plus
incentives to begin with.

Highly qualified professionals in the area of actuarial science are

much in demand and command a very lucrative career. Their starting
salary is the region of 50000/- and more per month and rises as more
and more experience is gained.

There are plenty of jobs in the insurance sector today, in both

government and private sectors. In fact, the estimated requirement
for trained professionals is expected to be more than 30,000 over the
next two to three years.

Insurance is a very good career option for those who want to be part
of the tremendous growth story being seen in the sector.
 Remuneration in Insurance Career
In government sector, the pay scale of the officers in the
insurance sector as given by the government of India is in the
range of Rs 3000-Rs 8000 for development officers and go up
to Rs 14,000-16,000 for zonal managers.
Along the basic pay given above, allowances amount is about
more than 200 percent of the basic pay.
In private sector, starting salaries are in the range of Rs 6000 to
Rs 9000 per month, where management graduates can start with
Rs 15,000 to Rs 25,000 per month.
Commissions are the most common form of compensation for
insurance agents and the amount depends on the type and
amount of insurance sold.
Earnings of surveyors depend upon nature of work and
assignments.