PRESENTATION INSURANCE SECTOR

COL VS RALHI

SATINDER SINGH

TARANDEEP SINGH

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 PREVEIW

 ORIGIN AND GOWTH OF INSURANCE SECTOR .

 INSURANCE SECTOR REFORMS.

 MAJOR PLAYERS IN INSURANCE INDUSTRY AND THEIR MARKET

SHARES.

 INDUSTRY STRUCTURE.

 PENETERATION OF INSURANCE SECTOR IN INDIA.

 MAJOR DRIVING FACTORS FOR INSURANCE INDUSTRY.

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 ORIGIN AND GROWTH OF INSURANCE SECTOR

Insurance in modern form originated in the Mediterranean during the 13th

century. The earliest references to insurance have been found in
Babylonia , the Greeks and the Romans.

Marine insurance is the oldest form of insurance followed by life

insurance and fire insurance.

Life insurance activity in its modern form started in India in 1818 to

provide insurance for English widows when Oriental Life Insurance
Company was incorporated at Calcutta, followed by Bombay Life
Assurance Company in 1823 and Tritron Insurance Company for General
Insurance in 1850.

Insurance regulation formally began in India through the passing of two

acts, the Life Insurance Companies Act of 1912 and the Provident Fund
Act of 1912.

However the first comprehensive legislation was introduced with the

Insurance Act of 1938 that provided strict state control over insurance
business in the country. 3
 ORIGIN AND GROWTH OF INSURANCE SECTOR

After independence, the business of India Insurance grew at a

faster pace as competition amongst the Indian companies
intensified.

Insurance assurance business took place in 1956 when 245 Indian

and foreign insurance provident societies were first merged and
then nationalized. It paved the way towards the establishment of
Life Insurance the purpose of which was to raise the much needed
funds for rapid industrialization and self-reliance in heavy
industries.

General Insurance followed suit and in 1968; the Insurance Act

was amended to allow for total control over the general insurance
business.

Subsequently in 1973, non-life insurance business was

nationalized and the General Insurance Business (Nationalization)
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Act, 1972 was promulgated.
INSURANCE SECTOR REFORMS

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 INSURANCE SECTOR REFORMS

APRIL 1993 MALHOTRA COMMITTEE ON INSURANCE SECTOR REFORMS

AND DEREGULATION SET UP.

JANUARY 1994 MALHOTRA COMMITTEE SUBMITS REPORT TO THE FINANCE

MINISTER

DECEMBER 1996 IRDA BILL INTRODUCED IN PARLIAMENT AND REFERRED TO

THE STANDING COMMITTEE.

AUGUST 1997 IRDA IS WITHDRAWN FOLLOWING OPPOSITION TO FOREIGN

PARTICIPATION.

NOVEMBER 1997 GOVERNMENT OF INDIA CLEARS GREATER AUTONOMY TO

LIC AND GIC

JUNE 1998 UNION BUDGET ANNOUNCES OPENING UP OF INSURANCE

SECTOR

JANUARY 1999 NOTIFICATION OF IRDA AS A STATUTORY AUTHORITY

OCTOBER 1999 APPROVAL OF IRDA BILL BY THE CABINET WITH FDI LIMITED
TO 26%. FEBRUARY 2000 INSURANCE BILL PRESENTED IN
THE BUDGET SESSION
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OCTOBER 2000 PRIVATE INSURANCE COMPANIES ENTER THE MARKET
MAJOR INSURANCE PLAYERS

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 INSURANCE COMPANIES IN INDIA

Bajaj Allianz Life Insurance Company Limited

Birla Sun Life Insurance Co. Ltd
HDFC Standard life Insurance Co. Ltd
ICICI Prudential Life Insurance Co. Ltd.
ING Vysya Life Insurance Company Ltd.
Life Insurance Corporation of India
Max New York Life Insurance Co. Ltd
Met Life India Insurance Company Ltd.
Kotak Mahindra Old Mutual Life Insurance Limited
SBI Life Insurance Co. Ltd
Tata AIG Life Insurance Company Limited
Reliance Life Insurance Company Limited.
Aviva Life Insurance Co. India Pvt. Ltd.
Shriram Life Insurance Co, Ltd.
Sahara India Life Insurance
Bharti AXA Life Insurance
Future Generali Life Insurance IDBI Fortis Life Insurance
Canara HSBC Oriental Bank of Commerce Life Insurance.
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 INSURANCE COMPANIES IN INDIA

Religare Life Insurance

DLF Pramerica Life Insurance
Star Union Dai-ichi Life Insurance
Agriculture Insurance Company of India
Apollo DKV Insurance
Cholamandalam MS General Insurance
HDFC Ergo General Insurance Company
ICICI Lombard General Insurance
IFFCO Tokio General Insurance
National Insurance Company Ltd
New India Assurance
Oriental Insurance Company
Reliance General Insurance
Royal Sundaram Alliance Insurance
Shriram General Insurance Company Limited
Tata AIG General Insurance
United India Insurance
Universal Sompo General Insurance Co. Ltd
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 LIFE INSURERS

PUBLIC SECTOR

Life Insurance Corporation of India

PRIVATE SECTOR

Allianz Bajaj Life Insurance Company Limited Birla Sun-Life Insurance Company Limited

HDFC Standard Life Insurance Co. Limited ICICI Prudential Life Insurance Co. Limited

ING Vysya Life Insurance Company Limited Max New York Life Insurance Co. Limited

MetLife Insurance Company Limited Om Kotak Mahindra Life Insurance Co. Ltd.

SBI Life Insurance Company Limited TATA AIG Life Insurance Company Limited

AMP Sanmar Assurance Company Limited Dabur CGU Life Insurance Co. Pvt. Limited
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 GENERAL INSURER
PUBLIC SECTOR
National Insurance Company
Oriental Insurance Company Limited
Limited
New India Assurance Company
United India Insurance Company Limited
Limited
PRIVATE SECTOR
Bajaj Allianz General Insurance
HDFC Chubb General Insurance Co. Ltd.
Co. Limited
ICICI Lombard General Insurance
Export Credit Guarantee Corporation
Co. Ltd.
IFFCO-Tokio General Insurance
Cholamandalam General Insurance Co. Ltd.
Co. Ltd.
Reliance General Insurance Co.
TATA AIG General Insurance Co. Limited
Limited
Royal Sundaram Alliance
Insurance Co. Ltd.
REINSURER
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General Insurance Corporation of India
 INDIA INSURANCE POLICIES
LIFE INSURANCE – THIS SECTOR DEALS WITH THE RISKS AND THE ACCIDENTS AFFECTING
THE LIFE OF THE CUSTOMER. ALONGSIDE, THIS INSURANCE POLICY ALSO OFFERS TAX
PLANNING AND INVESTMENT RETURNS. THERE ARE VARIOUS TYPES OF LIFE INSURANCE
POLICIES IN INDIA: 
A. ENDOWMENT POLICY. 
B. WHOLE LIFE POLICY. 
C. TERM LIFE POLICY. 
D. MONEY-BACK POLICY. 
E. JOINT LIFE POLICY. 
F. GROUP INSURANCE POLICY. 
G. LOAN COVER TERM ASSURANCE POLICY. 
H. PENSION PLAN OR ANNUITIES. 
I. UNIT LINKED INSURANCE PLAN. 

GENERAL INSURANCE – THIS SECTOR COVERS ALMOST EVERYTHING RELATED TO PROPERTY,

VEHICLE, CASH, HOUSEHOLD GOODS, HEALTH AND ALSO ONE'S LIABILITY TOWARDS OTHERS.
THE MAJOR SEGMENTS COVERED UNDER GENERAL INSURANCE POLICY IN INDIA ARE: 
A. HOME INSURANCE.
B. HEALTH INSURANCE.
C. MOTOR INSURANCE.
D. TRAVEL INSURANCE. 
http://winsure.yolasite.com 13
MARKET SHARE

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MARKET SHARES PRIVATE LIFE INSURANCE PLAYERS

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PREMIUM COLLECTION – 2009- 2010

2009-10 2009-10

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GENERAL INSURERS

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INDIAN ECONOMY IS THE 12TH LARGEST IN THE
WORLD, WITH A GDP OF $1.25 TRILLION AND 3RD
LARGEST IN TERMS OF PURCHASING POWER PARITY.
WITH FACTORS LIKE A STABLE 8-9 PER CENT ANNUAL
GROWTH, RISING FOREIGN EXCHANGE RESERVES, A
BOOMING CAPITAL MARKET AND A RAPIDLY
EXPANDING FDI INFLOWS, IT IS ON THE FULCRUM
OF AN EVER INCREASING GROWTH CURVE.
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INDUSTRY STRUCTURE AND
PENETERATION OF INSURANCE
SECTOR IN INDIA

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 INDUSTRY STRUCTURE

CURRENTLY, A US$41 BILLION INDUSTRY, INDIA IS THE

WORLD'S FIFTH LARGEST LIFE INSURANCE MARKET AND
GROWING AT A RAPID PACE OF 32-34% ANNUALLY AS PER LIFE
INSURANCE COUNCIL STUDIES.

CURRENTLY, IN INDIA ONLY TWO MILLION PEOPLE (0.2 % OF

THE TOTAL POPULATION OF 1 BILLION) ARE COVERED UNDER
MEDICLAIM, WHEREAS IN DEVELOPED NATIONS LIKE USA
ABOUT 75 % OF THE TOTAL POPULATION ARE COVERED UNDER
SOME INSURANCE SCHEME. WITH MORE AND MORE PRIVATE
COMPANIES IN THE SECTOR, THE SITUATION MAY CHANGE
SOON.

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 PENETRATION OF INSURANCE SECTOR IN INDIA

Insurance is a Rs. 400 billion business in India’s and together

with banking services adds about 7% to India’s gross domestic
product (GDP) gross premium collection is about 2 percent of
GDP and growing between 15 and 20 percent per annum.

India also has highest number of life insurance policies in force

in the world. Yet more than three fourth of India’s insurance
population has no life insurance cover the penetration of
insurance is very low in India the following indices support this
contention.

The insurance Premium as a percentage of Gross Domestic Saving

(GDS) was 52% for U.K, 35% for other European and American
countries ,it was only 9% for India in 1999.

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 MAJOR DRIVING FACTORS

=> Growing demand from semi-urban population.

=> Entry of private players following the deregulation.
=> Rising demand for retirement provision in the ageing
population.
The opening of the pension sector and the
establishment of the new pension regulator.

=> Success of Auto insurance sector.

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 EMERGING AREAS

=> Healthcare Insurance & Pension Plans.

=> Mutual fund linked insurance products.

=> Multiple Distribution Networks .i.e. Banc assurance

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 INSURANCE SECTOR IN INDIA: TOWARDS THE 2020
VISION

BY 2020, PREMIUM VOLUME IN THE INDIAN

MARKET COULD EASILY EXCEED USD 120 BILLION IN
TODAY’S MONEY.

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THANKS

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